Rhode Island became the latest state to jump on the medical debt reporting bandwagon when Governor Daniel McKee signed Rhode Island S 2709 into law in late June. It prohibits medical debt reporting in contracts with collection entities.
Rhode Island S 2709 was quickly moved through the senate and the house after being introduced in early March. In the bill, healthcare providers, facilities and emergency medical transportations services are not allowed to provide medical debt information to a consumer reporting agency. Contracts with collection entities or debt collectors must include a provision which prohibits the reporting of any portion of medical debt to a consumer reporting agency (CRA).
Rhode Island S 2709 has several requirements, but one that stands out is that any correspondence from a creditor, debt collector or collection agency to a consumer shall include the following language: “The State of Rhode Island general laws prohibit credit bureaus from reporting medical debt or factoring medical debt into a credit score.”
The act takes effect on January 1, 2025. At that point any CRA or debt collector that fails to comply with the act and is found to be in noncompliance with Rhode Island S 2709 will be liable to the consumer $10 per day of noncompliance. If the noncompliance continues for more than 30 days, the attorney general may bring action against the offender.
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