Oregon Lawmakers Wipe Medical Debt from Credit Reports to Ease Financial Pain for Struggling Consumers

Medical debt will no longer appear on the credit reports of Oregon consumers after Senate Bill 605 was passed by lawmakers yesterday.

Oregon Consumer Justice Applauds the Move

The bill was a priority for Oregon Consumer Justice (OCJ) – it will rectify the flawed practice of disclosing medical debt on credit reports.

‘People dealing with health challenges should not have to face economic barriers, such as getting a job or finding a house,’ says OCJ’s Policy Director, Chris Coughlin. He says credit reports are often inaccurate, failing to reflect a consumer’s financial responsibility.

Nearly One-Third of Oregonians Has Incurred Medical Debt

According to OCJ, nearly one-third of Oregonians have incurred medical debt over the last two years as costs have soared, and the bill will offer ‘critical relief’ to recover financially and physically from unplanned medical expenses.

Governor Tina Kotek must sign the bill into law and, once enacted, SB 605 will remove any existing medical debt from credit reports; prohibit reporting medical debt by credit agencies by debt collectors, hospitals, and other reporting entities; prohibit medical debt showing on credit reports for employment and tenant screening; and prevent credit reporting on targeted health care credit cards.

Governor Urged to Sign the Bill Into Law

The state director of The Leukemia and Lymphoma Society, Adam Zarrin, has urged the Governor to sign the bill into legislation, saying ‘too many people fall into debt because healthcare has become unaffordable.’

In a Press release, OCJ says it is proud to have championed the bill, alongside the Consumer Alliance of Oregon, The Leukemia & Lymphoma Society, and with the support of the bill’s chief sponsors, Senator Wlnsvey Campos and Representative Nathan Sosa.

OCJ is a justice movement that puts people first. The organization works to protect and expand consumer rights and end predatory practices.

OCJ’s ultimate goal is for all Oregonians to live with abundance and dignity, and to enjoy economic opportunities.