Press Release: New Laws in Maine and Oregon Prohibit Medical Debt Reporting
In a significant move toward consumer protection, Maine and Oregon have recently enacted laws prohibiting the reporting of medical debt to consumer reporting agencies. Both states join a growing list of jurisdictions responding to the increasing concern over the impact of medical debt on consumers’ credit scores.
On June 9, 2025, Maine’s Governor signed LD558, amending the Maine Fair Credit Reporting Act. This legislation forbids medical creditors, debt collectors, and debt buyers from reporting medical debts. Defined broadly, a "medical creditor" includes any entity providing healthcare services that has incurred medical debt from a consumer. Violation of this law allows consumers to seek civil remedies for damages, attorney fees, and possibly punitive damages.
Shortly after, on June 17, 2025, Oregon enacted SB0605, which goes further by banning any person from reporting medical debt owed by residents. This encompasses debts to healthcare providers and medical credit cards. In Oregon, consumer reporting agencies can’t include known medical debt in consumer reports. Individuals may pursue private civil actions under the state’s Unlawful Trade Practices Act against violators, with courts holding the authority to deem medical debts void and uncollectible.
These legislative changes in Maine and Oregon coincide with the Consumer Financial Protection Bureau’s (CFPB) suspension of a federal rule aimed at limiting the reporting of medical debt. The CFPB’s indecision has prompted states to take matters into their own hands to protect consumers.
Health providers and debt collectors operating in these states must revise their policies to comply with these new regulations, as failure to do so could lead to significant legal repercussions. The trend in states banning medical debt reporting reflects a broader commitment to consumer welfare in the face of financial challenges posed by healthcare costs.
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