Oregon has passed new legislation aimed at limiting the impact of medical debt on consumer credit reports. Governor Tina Kotek recently signed SB 605 A, a law that will prohibit consumer reporting agencies from including known medical debt on credit reports. Additionally, the law will bar health care providers from reporting the existence or amount of medical debt to credit reporting agencies.Ā
Set to take effect on January 1, 2026, the law classifies these reporting practices as violations under the stateās Unlawful Trade Practices Act.Ā
The definition of āmedical debtā was a key point of discussion among financial services professionals and members of the medical community as the bill advanced. Under the new law, medical debt is broadly defined to include any monetary obligation owed by an Oregon resident to:Ā
- A provider whose primary business is delivering medical services, products, or devices (including agents or assignees), orĀ
- A credit card balance, whether past due or not, if the card was issued through a credit plan specifically intended for the payment of medical expenses.Ā
This law places Oregon among a growing number of states taking legislative steps to shield consumers from the long-term financial effects of medical debt by limiting its influence on credit reporting.Ā
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Author:Ā Jennifer Evancic
Jennifer.Evancic@ResourceManagement.com
Jennifer Evancic is a third-party auditor valued by creditors and large organizations for her knowledge in call monitoring within the collections industry. With meticulous attention to detail and a firm grasp of regulatory requirements, she ensures compliance with clientsā criteria and state and federal regulations.
Jennifer audits collections calls, ensuring they meet client-specific criteria and comply with regulations, providing valuable insights and maintaining industry standards.
Beyond her auditing responsibilities, Jennifer takes the lead in organizing and facilitating monthly call calibrations. These sessions serve as a collaborative forum where clients and their vendors come together to discuss call monitoring results and address any findings or areas for improvement. Jenniferās guidance fosters open communication and ensures alignment between clients and vendors, driving continuous improvement in collections practices.
Jennifer stays up-to-date with compliance and industry best practices by participating regularly in peer meetings, regulatory updates and industry webinars. This keeps her informed about emerging issues and ensures she remains a knowledgeable leader in collections compliance.
