30 Jul I have medical debt. Is there a new law to help?

Q. I have medical debt. Is there a new law to help?
— Debtor

A. We’re sorry to hear you have medical debt.

You’re certainly not alone. The median debt burden in New Jersey is $472, and about 11% of New Jerseyans had medical debt as of 2022.

The new law doesn’t remove the debt, but it does help with your credit report. It was signed by Gov. Phil Murphy earlier this month.

It would prevent medical bill collectors from reporting debts after July 22, 2024, to the credit reporting agencies.

The law has other provision, prohibiting medical debt collectors from:

(1) making a consumer report containing a patient’s paid medical debt or a medical debt worth less than $500, regardless of the date the medical debt was incurred;

(2) charging an interest rate on a medical debt of more than three percent per year;

(3) garnishing the wages of a patient with an annual income of less than 600 percent of the federal poverty level to collect medical debt owed by that patient; or

(4) engaging in any collection actions against a patient until 120 days after the first bill for a medical debt has been sent or against a patient who accepts and complies with the terms of a reasonable payment plan.

Any time you have concerns about an unpaid debt, the first step is to see what’s on your credit report. You can check your reports for free at AnnualCreditReport.com.

Email your questions to .

This story was originally published in July 2024.

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