News & Analysis as of

State and Local Government New Legislation Debt Collection

Stevens & Lee

New Jersey’s Medical Debt Relief Act Now Fully in Effect

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In July 2024, New Jersey Governor Phil Murphy signed the Louisa Carman Medical Debt Relief Act into law (the Act). The Act protects patients from certain medical debt collection actions and contains several restrictions on...more

Sheppard Mullin Richter & Hampton LLP

Oregon Prohibits Medical Debt in Credit Reports

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....more

Orrick, Herrington & Sutcliffe LLP

Rhode Island enacts two laws regulating medical debt

On June 26, the governor of Rhode Island signed into law S0169, which amends the state’s deceptive trade practices laws to prohibit credit reporting agencies from reporting a consumer’s medical debt. The law also bars filing...more

Orrick, Herrington & Sutcliffe LLP

Oregon prohibits reporting medical debt to consumer reporting agencies

On June 23, the Oregon Legislature chaptered SB 605, enacting new restrictions on the reporting of medical debt to consumer reporting agencies. The law prohibits any person from reporting to a consumer reporting agency the...more

Troutman Pepper Locke

Illinois Passes Bill Prohibiting Collection of Coerced Debt

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On May 22, Illinois House Bill 3352 passed the Illinois legislature and now awaits Governor JB Pritzker’s signature. This bill amends the Illinois Collection Agency Act to provide an individual a way to avoid liability for a...more

Sheppard Mullin Richter & Hampton LLP

Vermont Enacts Law Prohibiting Medical Debt Reporting and Funding Debt Relief Initiative

On May 16, Vermont Governor Phil Scott signed into law S. 27, a medical debt relief measure that prohibits the inclusion of medical debt on consumer credit reports and establishes a state-funded initiative to abolish...more

Orrick, Herrington & Sutcliffe LLP

Vermont bans credit reporting of medical debt

On May 16, the governor of Vermont signed into law S 27, an act that is meant to provide medical debt relief for Vermont residents by, among other things, excluding medical debt from credit reporting. For fiscal year 2026, $1...more

Orrick, Herrington & Sutcliffe LLP

Florida updates law to allow communication with debtors via emails overnight

On May 20, the Florida Legislature enacted a bill, SB 232, amending the state’s debt collection practices. The legislation addresses the use of email communication, excluding it from the prohibited contact hours of 9:00 p.m....more

Orrick, Herrington & Sutcliffe LLP

Virginia enacts law protecting consumers from medical debt abuse

On May 2, the governor of the Commonwealth of Virginia approved HB 1725, which establishes the Medical Debt Protection Act to regulate billing and collection practices for medical debts. Effective July 1, 2026, the Act...more

Shipkevich PLLC

North Carolina Legislative Alert: House Representatives Propose Amendments to Expand Debt Adjusting Prohibitions to Ban Debt...

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Just a week from North Carlina Senators proposing Senate Bill 491, which seeks to create an act to license, examine, and regulate debt settlement services, North Carolina House Representatives Howard (R), Setzer (R), B. Jones...more

Womble Bond Dickinson

Arizona Voters Modify Creditors' Remedies with Passage of Proposition 209

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On November 8th, Arizona voters approved Proposition 209, which significantly modifies the rights of creditors. Although the pre-election publicity focused mostly on medical debt, Prop. 209 changes how all types of debt can...more

Sheppard Mullin Richter & Hampton LLP

New York Enacts Consumer Credit Fairness Act, Impacting Debt Collection Actions

On November 8, New York Governor Kathy Hochul signed into law the Consumer Credit Fairness Act (Act) (S.153/A.2382). The Act contains a series of amendments to New York’s Civil Practice Law and Rules (CPLR) that...more

Bradley Arant Boult Cummings LLP

New York Adds ADA-Type Requirement and Teeth to Debt Collection Procedure Act

On October 8, the governor of New York signed Bill No. AO-2260A to assist borrowers who need accommodation for visual impairments. Bill No. AO-2260A is “an act to amend the general business law, in relation to requiring debt...more

Ballard Spahr LLP

CA enacts law prohibiting postsecondary schools from withholding transcripts as debt collection tool

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On October 4, California Governor Gavin Newsom signed into law Assembly Bill 1313, which prohibits postsecondary schools from withholding transcripts as a debt collection tool.  The law is effective January 1, 2020. ...more

Ballard Spahr LLP

New requirements for collection of medical debt in Washington effective July 28

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Effective July 28, debt collectors licensed in Washington will be subject to new requirements when collecting medical debt. Substitute House Bill 1531, signed into law by Washington Governor Jay Inslee on April 30, amended...more

Ballard Spahr LLP

Texas amends debt collection law to add new requirements for debt buyers

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On June 14, 2019, Texas Governor Greg Abbott signed HB 996, which amends Chapter 392 of the Texas Finance Code dealing with debt collection.  The amendments are effective September 1, 2019. ...more

Lowndes

Collecting Smaller Debts Just Got Easier for Creditors Thanks to New Legislation

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Collecting smaller debts may be getting easier. On May 24, 2019, Governor DeSantis signed HB 337 which increased the jurisdictional limits of the county courts. Presently, county courts handle lawsuits for up to $15,000 while...more

Ballard Spahr LLP

New York adopts amendments addressing collection of family member debts

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On December 28, 2018, New York Governor Cuomo signed into law amendments to the state’s General Business Law (GBL) that address the collection of family member debts.  The amendments made by Senate Bill 3491A become effective...more

Ballard Spahr LLP

NY enacts new disclosure requirements for use of auto “kill switches”

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New York has enacted legislation that requires creditors to provide new disclosures when using devices to remotely disable vehicles, commonly referred to as “kill switches.”  The new law took effect immediately upon its...more

Ballard Spahr LLP

California Further Expands Protections to Servicemembers, Restricts Credit Reporting About Active Duty Status, Requires Written...

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On September 19, 2018, California enacted AB-3212. The Bill amends the California Military and Veterans Code to expand the protections offered to qualifying servicemembers under state law and to impose new criminal penalties...more

Ballard Spahr LLP

The Maryland Financial Consumer Protection Act of 2018 significantly increases state regulation

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Noting, among other things, “retrenchment” on the federal level, the Maryland Financial Consumer Protection Act of 2018 (HB 1634) was signed into law on May 15, 2018. ...more

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