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On June 23, Oregon enacted SB 605, barring medical-debt information from appearing in consumer credit reports. The measure, which amends the Oregon Unlawful Trade Practices Act, takes effect January 1, 2026.
SB 605 defines "medical debt" to include nearly any obligation for treatment, supplies, or balances on credit cards issued solely for medical expenses, excluding purely cosmetic procedures. It also authorizes courts to declare debts void if they are reported in violation of the statute. Key provisions of the bill include:
- Prohibition on furnishing medical debt. Hospitals, debt collectors, creditors, and other parties may not report the amount or existence of any medical debt an Oregon resident owes, or is alleged to owe, to consumer reporting agencies.
- Requiring agencies to suppress medical entries. Consumer reporting agencies must block items they know, or reasonably should know, are medical debt from appearing in any report.
- Covering credit-card balances dedicated to care. Debts charged to cards issued exclusively for medical services receive the same protection as direct provider bills.
- Expanded private remedies. In addition to allowing consumers to sue under the Unlawful Trade Practices Act to recover statutory damages and attorneys' fees, SB 605 also authorizes courts to void improperly reported debt.
Putting It Into Practice: Oregon's enactment follows similar laws in Maine and Vermont and marks the latest state-level action since the CFPB vacated its own rule on medical debt reporting in May (previously discussed here and here). With more states moving in this direction, creditors, credit reporting agencies, and debt collectors should keep a close watch on emerging state credit-reporting laws and update compliance procedures accordingly.
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