PATCH Act

119th Congress Introduced by John Neely Kennedy

Prohibits medical debt from being included as adverse information on consumer credit reports and requires regulators to prevent lenders from using medical debt in credit decisions.

Introduced in Senate

Overview

Bill: S. 4622 (119th Congress) — "Protecting Americans from Treatment-related Credit Harm Act" (PATCH Act)

Sponsor: Senator Kennedy (co-sponsored by John Neely Kennedy)

Introduced: May 21, 2026

Purpose: Amend the Fair Credit Reporting Act (FCRA) to prohibit the inclusion and use of medical debt in consumer credit reports, with related regulatory changes and timelines.

What the bill aims to change

Prohibit medical debt from appearing on consumer credit reports.

Create a definition of “medical debt” for purposes of the FCRA.

Remove or modify existing categories of adverse information related to medical debt in credit reporting.

Direct federal regulators to adjust regulations to ensure medical debt cannot be used in credit underwriting.

Key provisions

1) Definition added

Adds a new term: “medical debt” defined as a debt arising from the receipt of medical services, products, or devices.

2) Exclusion of medical debt from credit reporting (FCRA amendments)

Amends Section 605(a) to:

Remove current language about certain adverse information, and
Prohibit the inclusion of medical debt in consumer reports — including medical debts that have been placed for collection, charged to profit or loss, or subjected to similar actions.
Clarifies that this prohibition does not prevent consumer reporting agencies from collecting the medical debt information; i.e., the information may still be collected but not included as adverse information on a credit report.

Technical/conforming amendments to Section 604(g) to align with the medical debt exclusion and remove references related to medical information that are outside this scope.

3) Regulatory adjustment on use of medical debt in credit decisions

Requires the Director of the Consumer Financial Protection Bureau (CFPB) to:

Within one year of enactment, amend 12 C.F.R. § 1022.30 (or any successor regulation) to ensure creditors are prohibited from obtaining or using information relating to a consumer’s medical debt when deciding whether to extend credit.

Who is affected

Consumers: Shielded from medical debt impacting credit reports and credit decisions.

Credit reporting agencies: Subject to new prohibitions on including medical debt as adverse information.

Creditors and lenders: Prohibited from considering medical debt in credit determinations, once the CFPB regulation is amended.

Regulator: CFPB would implement regulatory changes to codify the ban in federal regulations.

Timelines and process

Regulatory action required: CFPB must amend § 1022.30 (or successor) within one year of enactment to implement the prohibition on using medical debt in credit decisions.

Legislative path: Bill introduced and referred to the Senate Committee on Banking, Housing, and Urban Affairs; potential further congressional action needed for passage.

Potential impact and implications

Reduces the negative impact of medical debt on consumers’ creditworthiness.

Aligns credit reporting with consumer fairness considerations by removing one of the most common sources of financial distress (medical expenses) from credit scoring.

Could affect credit access metrics for individuals with medical expenses but otherwise strong credit behavior.

Regulatory changes are essential to ensure consistent application across lenders and credit reporting entities.

If you’d like, I can add a short comparison to existing law or provide potential questions for stakeholders (consumers, lenders, reporting agencies) to consider during implementation.