PATCH Act
- Bill Number
- S. 4622
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Policy Area
- Finance and Financial Sector
- Status
- Introduced
- Latest Action
- 2026-05-21: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- Last Updated
- 2026-07-01T21:21:08Z
AI-Generated Summary
Purpose This legislation aims to prevent medical debt from appearing on consumer credit reports and from being used by creditors when deciding whether to extend credit.
Key Provisions
- Defines "medical debt" as any debt from receiving medical services, products, or devices.
- Amends the Fair Credit Reporting Act to bar consumer reporting agencies from including any adverse information about medical debt (including debts sent to collections or charged off) on reports.
- Requires the Bureau of Consumer Financial Protection to update its regulations within one year so that creditors cannot obtain or use medical debt information when evaluating credit applications.
- Makes technical changes to remove outdated references to medical information in existing credit reporting rules.
Significant Changes to Existing Law
- Removes the current allowance for limited medical debt reporting under Section 605(a) of the Fair Credit Reporting Act.
- Strengthens protections by extending the prohibition beyond reports to direct use by creditors, going further than prior rules that only restricted certain medical data.
Potential Impacts
- Citizens: Individuals with unpaid medical bills could see improved credit scores and easier access to loans, mortgages, or other credit.
- Government agencies: The Bureau of Consumer Financial Protection must revise its rules, requiring staff time and resources for updates and enforcement.
- International relations: No direct effects identified.
Main Stakeholders Affected
- Consumers carrying medical debt.
- Consumer reporting agencies (credit bureaus).
- Creditors and lenders who evaluate credit applications.
- The Bureau of Consumer Financial Protection.
- Healthcare providers and collection agencies that report debts.
Notable Legal, Constitutional, or Political Implications The bill expands consumer privacy and fair credit protections under existing federal law without altering constitutional rights or creating new enforcement mechanisms beyond the Bureau's regulatory role. It focuses on limiting the use of sensitive health-related financial data in commercial decisions.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Recent Actions
- 2026-05-21: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- 2026-05-21: Introduced in Senate
Bill Versions
- Protecting Americans from Treatment-related Credit Harm Act — issued 2026-05-21 — PDF (3 pages)