Enhanced Consumer Protection for Medical Debt

February 27, 2024
By Cornerstone Staff

The early weeks of 2024 indicate a busy year ahead for state consumer protection legislation, especially regarding initiatives to assist consumers with medical debt.

An increasing number of U.S. states, including Michigan, Arizona, South Carolina, Florida, Washington, Indiana, Nebraska, Virginia, and Vermont, are introducing legislation to alleviate the impact of medical debt on consumers. In late 2023, the governor of New York signed a law to prohibit against medical credit reporting. South Carolina and Vermont are contemplating following the examples set by Colorado and New York to halt medical credit reporting as well. States like Florida, Washington, and Virginia are exploring the possibility of reducing the statute of limitations on medical debt and restricting legal collection methods.

Further, recent court cases have underscored the significance of consumer protection in the field of debt collection. A case in the California Appeals Court upheld the dismissal of a malicious prosecution and unfair debt collection lawsuit against a creditor, emphasizing the need for consumer protection laws.

Given the increase in legislative efforts promoting consumer protection from unjust medical debt collection, it’s clear that more changes are on the horizon in the realm of consumer protection. As we navigate the complexities of medical debt collection, lawmakers remain focused on protecting consumers and fostering fair, transparent, and competitive markets for consumer financial products.

In light of these legislative advancements, the importance of being properly licensed in debt collection practices cannot be overstated. It’s crucial for debt collection agencies to navigate the ever-evolving legal landscape, ensuring compliance with all state and federal regulations.

This is where working with licensing experts becomes invaluable. Cornerstone specializes in guiding agencies through the intricacies of obtaining and maintaining the necessary licenses, tailored to their specific operations. Partnering with Cornerstone ensures that your business is equipped with the proper licenses to operate legally, while also avoiding the burden of unnecessary licensure. This not only safeguards against potential legal pitfalls but also reinforces consumer confidence in the ethical standards of debt collection practices.

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Cornerstone Staff

Staff
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