Consumer Protection

Plain English Breakdown

The bill summary and text do not provide specific details about enforcement mechanisms beyond the attorney general's authority.

Consumer Protection Act

This bill stops healthcare providers from reporting medical debts to consumer credit agencies and allows patients to dispute inaccurate information on their reports.

What This Bill Does

• Prevents healthcare providers from sending patient medical debt records to consumer reporting agencies starting July 1, 2025.
• Consumer reporting agencies cannot include a record of medical debt in consumer reports.
• Patients can challenge the accuracy or completeness of information on their credit report if it violates this law.
• Violations are treated as unfair practices under Tennessee's Consumer Protection Act and face penalties including fines up to $500 or jail time for six months, or both.

Who It Names or Affects

• Healthcare providers
• Consumer reporting agencies
• Patients with medical debt

Terms To Know

consumer report

A document that contains information about a person's credit history, such as debts and payment history.

debt collections agency

An organization hired to collect unpaid bills or debts from individuals.

Limits and Unknowns

• The bill does not prevent healthcare providers from reporting medical debt to debt collection agencies.
• It is unclear how this law will be enforced and what specific actions the attorney general can take.

Official Summary Text

This bill prohibits a healthcare provider from reporting
a patient's medical debt to a consumer reporting agency
, but does not

prohibit a healthcare provider from reporting
such
debt to a debt collections agency
.

This bill provides that i
f
a consumer reporting agency includes 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.

This bill
requires that a
violation of this part constitutes a violation of the Tennessee Consumer Protection Act of 1977
("TCPA") as
an unfair or deceptive act or practice affecting trade or commerce
. It
is subject to the penalties and remedies as provided in the
TCPA. The penalty for a deceptive act under the TCPA is a Class B misdemeanor, punishable by no more than six months in prison or a fine of no more than $500, or both.

This bill requires that i
n addition to the penalties and remedies
of the TCPA, t
he at
torney general has all of the investigative and enforcement authority that the attorney general has under the
TCPA
relating to alleged violations. The attorney general may institute any proceedings involving alleged violations in Davidson County circuit o
r chancery court or any other venue otherwise permitted by law.
Costs
of any kind or nature cannot be taxed against the attorney general or this state in actions commenced under this
bill
.

Current Bill Text

HOUSE BILL 539
By Dixie

SENATE BILL 402
By Lamar

SB0402
000076
- 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; Title 47; Title 63 and
Title 68, 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);
(3) "Debt collections agency" means a person or entity hired to collect or
attempt to collect debts due or asserted to be due to another person or entity;
(4) "Healthcare provider" means a healthcare practitioner, person, or
facility licensed, authorized, certified, registered, or regulated under title 33, title
63, or title 68; and
(5) "Medical debt" means debt arising from the receipt of healthcare
services and related expenses.
47-18-5802.

- 2 - 000076

(a) Beginning July 1, 2025, a healthcare provider shall not report a patient's
medical debt to a consumer reporting agency. This section does not prohibit a
healthcare provider from reporting a patient's medical debt to a debt collections agency.
(b) Beginning July 1, 2025, a consumer reporting agency shall not include on a
consumer report a record of medical debt.
(c) If a consumer reporting agency includes information in a consumer report in
violation of subsection (b), 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).
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 this state in actions commenced under this part.
SECTION 2. This act takes effect July 1, 2025, the public welfare requiring it.