The early weeks of 2024 point to a busy year for state consumer protection legislation. Much of it targets medical debt.
A growing number of U.S. states are introducing bills to ease the impact of medical debt on consumers. The list includes Michigan, Arizona, South Carolina, Florida, Washington, Indiana, Nebraska, Virginia, and Vermont.
The momentum started in late 2023. New York's governor signed a law that bars medical credit reporting. South Carolina and Vermont are now weighing the same step, following Colorado and New York. Florida, Washington, and Virginia are looking at a different approach. They want to shorten the statute of limitations on medical debt and limit how it can be collected in court.
Recent court cases point the same way. A California Appeals Court upheld the dismissal of a malicious prosecution and unfair debt collection lawsuit against a creditor. The ruling underscored the role of consumer protection laws.
The direction is clear. More consumer protection changes are coming. Lawmakers stay focused on shielding consumers from unfair medical debt collection. They also want to keep markets for consumer financial products fair, transparent, and competitive.
These changes raise the stakes on proper licensing. Debt collection agencies have to keep up with a shifting legal landscape and stay compliant with all state and federal rules.
This is where licensing experts help. Cornerstone guides agencies through obtaining and maintaining the licenses their operations require. That keeps your business licensed to operate legally, without the cost of licenses you do not need. It guards against legal missteps, and it reinforces consumer confidence in the ethical standards of your collection practices.
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