CFPB Proposes Prohibiting Inclusion of Medical Debt on Consumer’s Credit Reports
On August 10, 2023, CCLP celebrated our 25th anniversary, bringing friends new and old to the Carriage House at the Governor's Residence.
Katie Wallat, CCLP’s Senior Attorney, provided testimony at the August 11, 2023, meeting of the Medical Services Board.
SnappyNav, developed as law school class project, now available to the public.
Colorado’s medical debt credit reporting law takes effect
Colorado’s medical debt credit reporting law takes effect HB23-1126 provides first-in-the-nation protections for Coloradans with medical debt.
DENVER, CO — August 14, 2023 — A groundbreaking consumer protection law took effect this month in Colorado. The law, House Bill 23-1126, protects consumers with medical debt from credit harm by prohibiting the inclusion of medical debt information on credit reports.
Colorado is the first state in the country to enact such legislation. Colorado Center on Law and Policy, which championed the legislation in coalition with partners, has created resources in English and Spanish to educate Colorado consumers about their rights under the new law.
A fact sheet and know-your-rights guide are available on CCLP’s website at cclponline.org/resource/med-debt-credit-reports.
“We are excited to see these much-needed protections take effect,” said Julia Char Gilbert, Connelly Policy Advocate at Colorado Center on Law and Policy. “The educational resources are here to help Coloradans understand their rights and take action when companies are out of compliance.” Under the new law, the onus is on the credit bureaus — not consumers — to keep medical debt information off Coloradans’ credit reports. However, if someone with medical debt has an important life event on the horizon that involves a review of their credit report or credit score, Char Gilbert says they may want to review their credit report now, to check that their medical debt information has been removed properly.
“If your medical debt still appears on your credit report, you have the right to dispute that information and ask to have it removed,” Char Gilbert said. “For many Coloradans, this can make all the difference when trying to get an apartment, a job, a loan, an affordable interest rate. It smooths the path forward after a financially devasting medical event.”