Oklahoma House Bill HB1995

Oklahoma 2023 Regular Session

• Introduced: 2/6/23
• Refer: 2/7/23

Caption

Medical debt; legislative referendum pursuant to the Oklahoma Constitution; Oklahoma Protection from Predatory Debt Collection Act; exemptions; definitions; rates of interest for loans or indebtedness and interest on judgments; conflicts with federal law; severability; ballot title; filing.

Impact

The law is expected to have a profound effect on state statutes governing how medical debt is treated. By capping the interest rates on medical debts and expanding asset exemptions, the bill aims to provide an essential safety net for residents struggling with financial burdens due to healthcare costs. Proponents argue that these changes could reduce the number of personal bankruptcies and alleviate the stress caused by medical debt. Moreover, by incorporating provisions to adjust exemptions annually based on inflation, the law seeks to ensure that protections remain relevant over time.

Summary

House Bill 1995, introduced in Oklahoma, aims to create the 'Oklahoma Protection from Predatory Debt Collection Act.' This bill significantly modifies how medical debts are managed in the state, primarily by reducing the maximum interest rate on medical debt from 10% to 3% annually. Additionally, it proposes increases in exemptions from debt collection, allowing individuals to protect a larger portion of their assets from creditors. This legislative move comes amid growing concerns regarding predatory practices in debt collection, particularly affecting vulnerable populations grappling with medical expenses.

Contention

Notable points of contention include potential challenges from creditors and debt collectors, who may view the reduced interest rates as a limitation on their ability to recoup costs associated with lending. Additionally, discussions surrounding the adequacy of the protections offered to those with severe financial hardships could arise, as critics argue that simply lowering interest rates may not sufficiently address the broader issues of healthcare access and affordability. The bill's passage would consequently stimulate debate regarding the balance between creditor rights and consumer protections in Oklahoma's financial landscape.