SB 451 — Consumer credit: credit reports and reporting agencies; collection and reporting of medical debt information; regulate. Creates new act.

SB-451, As Passed Senate, March 11, 2026 SUBSTITUTE FOR SENATE BILL NO.

to regulate certain reporting of medical debt;

(c) "Consumer report" means a written, oral, or other communication or any information by a consumer reporting agency that relates to a consumer's creditworthiness, credit standing, VMP S00283'25 (S-1)(S-2)_SB451_APS_1 r6e51ah18s0o 1 credit capacity, debts, character, general reputation, personal characteristics, or mode of living, that is used or expected to be used or collected, in whole or in part, as a factor to establish a consumer's eligibility for credit or insurance for personal, family, or household purposes, an employment purpose, or any other purpose authorized under the fair credit reporting act, 15 USC 1681 to 1681x.

(e) "Creditworthiness" means an entry in a consumer's credit file that impacts the ability of a consumer to obtain and retain VMP S00283'25 (S-1)(S-2)_SB451_APS_1 r6e51ah18s0o 1 credit, employment, business or professional licenses, investment opportunities, or insurance, including, but not limited to, entries related to payment information, defaults, judgments, liens, bankruptcies, collections, records of arrest and indictments, and multiple-creditmultiple credit inquiries.

(j) "Medical debt"creditor" means a debtperson owedthat byprovides a consumerhealth tocare aservice personor whosehealth primarycare businessgood isand providingto whom the consumer owes money for a health care service or health care good, or a person that provided a health care service or health care good and to whom the person'sconsumer agentpreviously orowed assignee,money forif the provisionmedical ofdebt ahas healthbeen carepurchased serviceby 1 or healthmore caredebt good.buyers.

As used in this subdivision, "debt buyer" means a person that purchases medical debt and brings VMP S00283'25 (S-2)_SB451_APS_1 h18s0o 1 an action to collect the medical debt.

(k) "Medical debt" means a debt owed by a consumer to a person whose primary business is providing a health care service or health care good, or to the person's agent or assignee, for the provision of a health care service or health care good.

(l) "Medical debt collector" means a person that regularly collects or attempts to collect, directly or indirectly, medical debt.

(1) Except as otherwise provided in subsection (2), a VMP S00283'25 (S-1) r6e51a 1 consumer reporting agency shall not make a consumer report that contains an adverse item of information that the consumer reporting agency knows or should know concerns medical debt.

7.

A medical creditor or a medical debt collector shall not communicate with or report any information to a consumer reporting agency regarding a medical debt.

Sec.

A collection agency, when attempting to collect debt that the collection agency knows is medical debt, or when attempting to obtain information about a consumer related to the collection of medical debt, shall not represent that the medical debt information will be included in a consumer report, unless the consumer report will be used in connection with a credit VMP S00283'25 (S-2)_SB451_APS_1 h18s0o 1 transaction that involves, or that may reasonably be expected to involve, a principal amount that exceeds the national conforming loan limit value for a 1-unit property, as determined annually by the Federal Housing Finance Authority.

(1) An individual who alleges a violation of this act VMP S00283'25 (S-1) r6e51a may bring a civil action against the person that committed the alleged violation to recover 1 or more of the following:

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