PATCH Act

This legislative proposal seeks to shield consumers from the adverse effects of medical debt on their financial standing by amending the Fair Credit Reporting Act. It specifically defines "medical debt" as any debt arising from medical services, products, or devices, and then **prohibits consumer reporting agencies from including any adverse information related to such debt** on a consumer report. The bill clarifies that while agencies may collect this information, they cannot report it in a manner that negatively impacts a consumer's credit. Furthermore, it mandates the Director of the Bureau of Consumer Financial Protection to amend existing regulations within one year. This amendment will **explicitly prohibit creditors from obtaining or utilizing medical debt information** when making decisions about extending credit to consumers, thereby providing comprehensive protection against the use of medical debt in credit assessments.