ICYMI: Exum’s Bill to Limit Medical Debt from Hurting Coloradans’ Credit Scores Clears Committee

Legislation would add medical debt to the list of information that consumer reporting agencies are not allowed to include in a credit report

DENVER, CO – Yesterday, Senator Tony Exum Sr.’s, D-Colorado Springs, bill to limit medical debt impacts on Coloradans’ credit reports or credit scores cleared the Senate Business, Labor, and Technology Committee.

HB23-1126 adds medical debt to the list of information that consumer reporting agencies are not allowed to include in a credit report, updates exemptions to expand consumer privacy protections, and requires collectors and collecting agencies to notify Coloradans that medical debt will no longer be included in credit reports.

“Medical debt, which is often unexpected and accrues rapidly, can have impacts on credit scores and reports even if the debt has been settled with creditors,” Exum said. “This creates barriers for folks trying to access necessities like housing, utilities, and loans, and it needs to change. With this bill, we’re putting in place new consumer protections that will help ensure Coloradans’ financial futures are not unduly impacted by their medical debt.”

Currently, when someone can’t afford a medical expense, the bill is sent to collections, and that information is shared with consumer reporting agencies that generate consumer reports and credit scores used by banks, landlords, employers, and insurance and utility companies.

The bill comes in addition to SB23-093, Sens. Lisa Cutter, D-Jefferson County, and Sonya Jaquez Lewis’, D-Longmont, bill to provide Coloradans with additional consumer protections from high interest rates for medical debt and confusing debt collection practices that lead to long-lasting debt and financial instability.

HB23-1126 now heads to the Senate floor for further consideration. You can follow the bill’s progress HERE.