Proposed legislation will better regulate medical debt collection

by elvis on July 27, 2012

Banks often hire debt collection agencies to collect long outstanding debts that borrowers owe. The Fair Debt Collection Protections Act (FDCPA) was enacted to regulate the ways in which debt collectors may interact with the borrowers. The regulations provide for penalties to the debt collectors who break rules and harass those in debt.

Senator Al Franken (D-Minn.) proposed the bill S. 3350, End Debt Collector Abuse Act of 2012 in late June according to Inside Patient Finance on July 11, 2012. This bill is similar to a bill that was never voted on in 2010 regarding the FDCPA but strengthens protections regarding medical debt collection.

The bill recognizes medical debt as ?unique.? Patients do not always know what their bill will be in advance. Also, the bill says that, ?consumers seek out health care services out of medical need, not choice? Overly aggressive medical debt collection can discourage consumers from seeing needed healthcare services, with dire financial, physical and public health consequences for themselves and their communities.?

The bill says that emergency medical services cannot be withheld, even if there is an unpaid debt. Also, debts cannot be collected using protected patient information.

At the law offices of Jayson Lutzky, P.C., we are here to help you if you are in debt or if you are considering bankruptcy. Mr. Lutzky has over 29 years of experience practicing law. For a free initial consultation call our office at (800) 660-5299. For more information visit www.BankruptcyNYC.com.

Source: http://bankruptcynyc.com/proposed-legislation-will-better-regulate-medical-debt-collection/

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