Consumer Protection

Plain English Breakdown

The official source material does not provide specific details about penalties and remedies beyond referencing existing laws.

Medical Debt Protection Act

This bill prohibits consumer reporting agencies from listing medical debts on credit reports in Tennessee starting July 1, 2025.

What This Bill Does

• Bans consumer reporting agencies from including records of medical debt judgments on credit reports in Tennessee as of July 1, 2025.
• Allows people to dispute inaccuracies or completeness issues related to medical debts on their credit reports under the federal Fair Credit Reporting Act.

Who It Names or Affects

• Consumer reporting agencies that compile credit reports in Tennessee.
• People with medical debt judgments filed in Tennessee who have their credit reports affected by these debts.

Terms To Know

Medical Debt

A debt related to healthcare services and expenses, reported to a collection agency or entered as a judgment by a court.

Consumer Report

A report that contains information about an individual's creditworthiness, employment history, character, general reputation, mode of living, and other factors relevant to determining the individual’s eligibility for credit, insurance, or employment.

Limits and Unknowns

• The bill does not specify what happens if a consumer reporting agency violates this rule before July 1, 2025.
• It is unclear how existing medical debt records on credit reports will be handled after the effective date of July 1, 2025.

Official Summary Text

Beginning July 1, 2025,
this bill prohibits
a consumer reporting agency
from
includ
ing
on a consumer report a record of a medical debt that is filed in this state.

If a consumer reporting agency includes
such
information in a consumer report, then the person to whom the consumer
report applies may dispute the completeness or accuracy of such information, as provided under the federal Fair Credit Reporting Act
.

I
n addition to the penalties and remedies in this
bill, this bill provides that a
violation of this
bill
constitutes a
violation of the Tennessee Consumer Protection Act of 1977, and is subject to the penalties and remedies as provided in
that Act, which includes, but is not limited to, restraining orders, injunctions, private rights of action, and actions by the attorney
general.
The attorney general has all of the investigative and enforcement authority that the attorney general has under
that
Act relating to alleged violations of this
bill
. The attorney general may institute proceedings involving alleged violations in
Davidson County circuit or chancery court or any other venue otherwise permitted by law.
However, c
osts of any kind or nature cannot be taxed against the attorney general or the state in
such
actions.

Current Bill Text

SENATE BILL 230
By Campbell

HOUSE BILL 223
By Clemmons

HB0223
001013
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 9,
Chapter 8; Title 16; Title 18; Title 20; Title 21; Title
27; Title 28; Title 29; Title 45 and Title 47, relative
to credit data.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Title 47, Chapter 18, is amended by adding
the following as a new part:
47-18-5801.
As used in this part:
(1) "Consumer report" has the same meaning as defined by 15 U.S.C. §
1681a(d);
(2) "Consumer reporting agency" has the same meaning as defined by
15 U.S.C. § 1681a(f); and
(3) "Medical debt" means a debt reported to a collection agency or a
judgment entered by a court for the collection of a debt that was incurred due to
the cost of healthcare services and related expenses.
47-18-5802.
(a) Beginning July 1, 2025, a consumer reporting agency shall not include on a
consumer report a record of a medical debt that is filed in this state.
(b) If a consumer reporting agency includes information in a consumer report in
violation of subsection (a), then the person to whom the consumer report applies may
dispute the completeness or accuracy of such information, as provided under the federal
Fair Credit Reporting Act (15 U.S.C. § 1681i).

- 2 - 001013

47-18-5803.
(a) A violation of this part constitutes a violation of the Tennessee Consumer
Protection Act of 1977, compiled in part 1 of this chapter. A violation of this part
constitutes an unfair or deceptive act or practice affecting trade or commerce and is
subject to the penalties and remedies as provided in the Tennessee Consumer
Protection Act of 1977, in addition to the penalties and remedies in this part.
(b) The attorney general and reporter has all of the investigative and
enforcement authority that the attorney general and reporter has under the Tennessee
Consumer Protection Act of 1977 relating to alleged violations of this part. The attorney
general and reporter may institute any proceedings involving alleged violations of this
part in Davidson County circuit or chancery court or any other venue otherwise permitted
by law.
(c) Costs of any kind or nature cannot be taxed against the attorney general and
reporter or the state in actions commenced under this part.
SECTION 2. This act takes effect July 1, 2025, the public welfare requiring it.