The American Financial Services Association (AFSA) has expressed concerns regarding Oregon’s proposed medical debt bill, SB 605. The association submitted a comment letter highlighting potential risks to consumer credit access and increased compliance burdens for lenders.
According to AFSA’s comment letter, the bill’s broad and unclear definitions, particularly the redefinition of “medical debt” to include third-party loans and credit extended to patients for medical services, could pose challenges. AFSA said that expanding this definition might lead to compliance difficulties and unintended consequences for traditional consumer lenders who offer general-purpose or point-of-sale loans that may incidentally be used for healthcare expenses. The association urged lawmakers to reconsider the bill’s scope and definitions to prevent these potential issues.
Senate Bill 605 seeks to prohibit medical service providers from reporting the amount or existence of medical debt to consumer reporting agencies. It also allows individuals to sue entities that violate this provision, categorizing such violations as unlawful practices under the Unlawful Trade Practices Act. According to the Oregon Legislative Information System, the bill has passed the Senate and is currently under consideration in the House.
As per its website, AFSA was founded in 1916 and serves as the national trade association for the consumer credit industry. Its membership includes over 450 companies, such as consumer and commercial finance companies, vehicle finance/leasing companies, mortgage lenders, credit card issuers, and industry suppliers.
