Medical Debt Relief Act Of 2010

Floor Speech

Medical Debt Relief Act Of 2010

* Ms. RICHARDSON. Mr. Speaker, I rise today in support of H.R. 3421, the ``Medical Debt Relief Act of 2010,'' which would address the issue of medical debt and the crippling effect that such debt can have on an individual's credit report, even long after it has been paid off. This bill will right an injustice in the credit scoring industry that unfairly penalizes thousands of families across the country.

* I thank Chairman FRANK for his leadership in bringing this bill to the floor. I also thank the sponsor of this legislation, Congresswoman KILROY, for her attention to this important issue.

* Mr. Speaker, in 2007, over 28 million Americans were contacted by debt collections agencies regarding medical debt. Unlike other forms of debt, however, individuals do not choose when to take on medical debt. The nature of serious illness is such that it often comes when we least expect it. Many people develop from low credit scores simply because they were forced to assume large amounts of medical debt when they did not expect it and were, thus, financially unprepared to do so. Unfortunately, these individuals' credit scores often remain low long after their debt has been paid off, and in some cases for the rest of their lives. This is an unfair penalty for individuals who have done nothing wrong.

* H.R. 3421 will correct this problem by inserting a clause into the Fair Credit Reporting Act that to eliminate medical debt from credit reporting within 3o days of the debt being fully paid off. Credit reports are an important tool for leasers, lenders, and many other industries. This bill will ensure that credit reports reflect individuals' actual credit-worthiness, rather than providing an artificially low-score that is dragged down by medical debt from the past.

* I urge my colleagues to join me in supporting this H.R. 3421.

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