Bill > LD558

This bill aims to strengthen consumer protections by prohibiting the reporting of medical debt on consumer reports in the state of Maine. The bill first establishes definitions for key terms such as "debt buyer" (a person who purchases debt), "debt collector" (an entity collecting debt), "medical creditor" (an entity providing health care services to whom a consumer owes medical debt), and "medical debt" (as defined in existing state law). The most significant provision completely prohibits medical creditors, debt collectors, and debt buyers from reporting a consumer's medical debt to consumer reporting agencies, effectively preventing medical debt from appearing on credit reports. This change represents a significant shift from the previous law, which allowed medical debt reporting after a 180-day delinquency period and permitted reporting while consumers were making regular, scheduled payments. By removing medical debt from credit reporting, the bill seeks to protect consumers from potential long-term credit score damage resulting from medical expenses, which are often unexpected and can create significant financial strain for individuals and families.

Health and Social Services

https://legislature.maine.gov/legis/bills/display_ps.asp?LD=558&snum=132