Tennessee House Bill HB0223

Tennessee 2025-2026 Regular Session

• Introduced: 1/21/25
• Refer: 2/3/25

Caption

AN ACT to amend Tennessee Code Annotated, Title 9, Chapter 8; Title 16; Title 18; Title 20; Title 21; Title 27; Title 28; Title 29; Title 45 and Title 47, relative to credit data.

Impact

The implications of HB 0223 on state laws are substantial, particularly as they relate to the regulation of consumer reporting agencies and protections afforded to consumers. By prohibiting the reporting of medical debt, the bill seeks to ensure that individuals are not penalized for incurring necessary medical expenses. This represents a shift towards a more consumer-friendly approach in credit reporting practices, which have traditionally been criticized for being punitive against individuals who face financial hardships due to healthcare costs.

Summary

House Bill 0223 seeks to amend various titles within the Tennessee Code Annotated, specifically targeting issues related to consumer credit data. The bill introduces significant provisions that prevent consumer reporting agencies from including medical debt records in consumer reports after July 1, 2025. This is aimed at alleviating the impact that medical debt can have on individuals' creditworthiness and overall financial security. By doing so, the bill intends to protect consumers from adverse financial consequences stemming from necessary healthcare expenses that may have resulted in debt.

Contention

While the bill is viewed positively by consumer advocacy groups who argue it addresses the unjust impact of medical debt on credit scores, there are concerns regarding the potential consequences for lenders and credit reporting agencies. Supporters emphasize that the bill aligns with broader efforts to reform credit reporting practices and protect vulnerable populations. Conversely, critics may argue that the legislation could lead to increased risk for creditors if individuals with medical debt are not transparently reported, potentially affecting lending decisions.