Tennessee Senate Bill SB0402

Tennessee 2025-2026 Regular Session

• Introduced: 1/28/25

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; Title 47; Title 63 and Title 68, relative to credit data.

Summary

SB0402 would prohibit healthcare providers from reporting a patient’s medical debt to consumer reporting agencies beginning July 1, 2025. It also bars consumer reporting agencies from including medical debt on consumer reports, while preserving the ability of healthcare providers to send debts to debt collection agencies. The bill defines key terms such as consumer report, consumer reporting agency, healthcare provider, and medical debt by reference to federal law and Tennessee licensing statutes. The bill also creates a state enforcement mechanism by making violations of the new part a violation of the Tennessee Consumer Protection Act. That means prohibited reporting of medical debt would be treated as an unfair or deceptive act or practice, subject to the remedies and penalties available under that act, with enforcement authority vested in the attorney general and reporter. Consumers would still be able to dispute inaccurate or incomplete information under the federal Fair Credit Reporting Act if a consumer reporting agency includes medical debt in violation of the bill. The bill’s impact on state law would be to add a new consumer-protection restriction in Title 47 governing credit data and debt reporting, while also tying the new rule to existing consumer protection enforcement tools. It would affect healthcare providers, debt collectors, consumer reporting agencies, and consumers with medical debt, and it would limit the use of medical debt in credit reports in Tennessee. Because there are no committee transcripts or recorded votes provided, there is no direct evidence of debate or partisan sentiment in the available record. Based on the bill’s structure, its apparent policy goal is consumer relief and protection from the credit consequences of medical debt, while preserving ordinary collection activity outside of credit reporting. Any contention would likely center on the balance between consumer protection and the interests of creditors, collectors, and credit reporting agencies, but that is not documented in the supplied materials.

Impact

SB0402 would amend Tennessee’s consumer protection and credit-reporting laws to prohibit medical debt from being reported to consumer reporting agencies and from appearing on consumer reports, effective July 1, 2025. It would create a new part in Title 47 and make violations enforceable as unfair or deceptive acts under the Tennessee Consumer Protection Act, giving the attorney general and reporter enforcement authority and allowing affected consumers to dispute improper reporting under federal law.

Sentiment

No committee discussion or vote history was provided, so there is no documented legislative sentiment in the record supplied. On its face, the bill reflects a consumer-protection approach aimed at reducing the credit harm caused by medical debt while still allowing collection efforts through debt collection agencies. The available materials do not show opposition or support from specific lawmakers or stakeholders.

Contention

The bill’s main policy tension is between protecting consumers from negative credit consequences tied to medical debt and preserving the ability of healthcare providers and collectors to pursue payment. Supporters would likely favor removing medical debt from credit reports because of its impact on access to credit and the often involuntary nature of medical expenses. Potential critics could argue that the bill limits a tool used by providers and collectors to encourage repayment and may shift costs elsewhere, but no such arguments are documented in the provided transcripts or votes.