TN Lawmaker Takes on Medical Debt
Files legislation to wipe out debt, remove it from credit reports
While the DOGE Death Star focuses its laser on the Consumer Financial Protection Bureau (CFPB), some state lawmakers are taking action to ensure critical consumer protections stay in place.
During the Biden Administration, the CFPB took bold steps to alleviate the negative impact medical debt has on many families.
So, it’s welcome news that the Consumer Financial Protection Bureau (CFPB) is taking steps to eliminate all medical debt from being reported on consumer credit reports.
"The CFPB is seeking to end the senseless practice of weaponizing the credit reporting system to coerce patients into paying medical bills that they do not owe,” said CFPB Director Rohit Chopra. "Medical bills on credit reports too often are inaccurate and have little to no predictive value when it comes to repaying other loans."
Given the track record of the Musk-Trump Consumer Bureau so far - dropping numerous lawsuits impacting millions of defrauded consumers - it is important to ensure sensible actions like removing medical debt from credit reports actually materialize to benefit families.
With that in mind, Tennessee State Sen. London Lamar filed a pair of bills aimed at offering medical debt relief.
One bill provides direct relief by requiring hospitals to eliminate a certain portion of medical debt. The other says medical debt in collections may not be included on consumer credit reports.
The bills would both require a reduction in total medical debt AND ensure that medical debt incurred by Tennessee residents does not appear on their credit reports.
“If a hospital takes public money, they should lift patient debt in return. Health care should heal, not bankrupt,” said Lamar. “This is about real relief for working people — helping families stay in their homes, invest in their futures, and live with dignity.”
Tennessee is a national leader in debt, and especially in medical debt.
Lamar’s legislation is one step that could actually help Tennesseans get some footing when it comes to combating debt. No one should go into debt just because they get sick.
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This Tennessee legislation is a great example of states picking up the slack from the failing Musk Administration.
But, one lawmaker in one state can’t totally change the game for consumers. So, what do you do if you have a complaint about a bad actor in the financial marketplace?
First, start with your state’s Attorney General.
Attorneys General typically have consumer protection divisions and can apply relevant state laws to your situation. Sometimes, if an AG asks, a company will answer.
Second, let your Member of Congress know. One, they may be able to assist with a resolution. But also, it is important for Congress to know their constituents value the work formerly performed by CFPB. Congress can rescue the consumer champion from the DOGE Death Star . . . if they want to.