Medical Debt Collection: We oppose this amendment as it is unnecessary and would increase the cost of healthcare for servicemembers. The amendment would prohibit the collection of medical debt for two years, including legitimate debts, which would impose an extreme financial strain on healthcare providers that would be passed down to all consumers, including servicemembers, or lead providers to reduce the availability of the critical medical services they provide today. The two-year delay may seem like a brief period, but throughout history data shows that the older the debt the harder it is to collect.
The amendment would prohibit debt arising from medically necessary procedures from ever appearing on a servicemember credit report. The amendment would prohibit debt arising from medically necessary procedures from ever appearing on a servicemember credit report. The Chamber strongly cautions against the banning of reporting any information related to medical debt (or otherwise) to credit bureaus. This information enables creditors, such as banks and credit unions, to understand a borrower’s ability to repay a loan. Not only does this protect the safety and soundness of the financial institution, but it plays a critical consumer protection function since it helps institutions avoid extending credit to borrowers who are likely to default. And while the legislation limits the reporting ban to information relating to debt arising from “medically necessary procedure,” that term is constructed so broadly that it would cause significant confusion and prevent reporting of any information about medical debt.
Moratorium on Private School Debt Collection: We oppose this amendment because it would make it more difficult to obtain affordable financing for higher education. It would prohibit the collection of private student loan debts and would require the furnishing of inaccurate information to consumer reporting agencies through September 30, 2023. By restricting the collection of private student loan debt and creating more uncertainty about the future collection of debt, it will make it more difficult for creditors to make affordable loan options available. The amendment also raises serious consumer protection issues given it would require servicers to report inaccurate information that would blind creditors about borrower’s ability to repay future loans. To read more click here.
The U.S. Chamber of Commerce supports H.R. 4350, the “National Defense Authorization Act for Fiscal Year 2022,” which would authorize $778 billion in discretionary spending for national defense commitments at home and abroad. The Chamber believes H.R. 4350 would be improved if it were amended in several key areas including those related to debt collection above.