AFSA has voiced its concerns regarding Oregon's proposed SB 605, a bill aimed at amending the state's medical debt collection statutes. The American Financial Services Association (AFSA) communicated its apprehensions through a comment letter to the Oregon House Committee on Behavioral Health and Health Care.
The association highlighted issues with the bill's broad and ambiguous definitions, particularly the redefinition of "medical debt" to encompass third-party loans and credit extended for medical services. AFSA warned that this expanded definition could lead to compliance challenges and unintended consequences for traditional consumer lenders offering general-purpose or point-of-sale loans that might be used for healthcare expenses.
Additionally, AFSA pointed out that the bill's new disclosure requirements and payment plan mandates could disrupt existing credit products and limit consumer access to flexible financing options. The letter emphasized that these requirements might duplicate or conflict with current federal and state consumer protection laws, potentially causing confusion among consumers and creditors.
AFSA called on lawmakers to reconsider the scope and definitions of the bill. It urged engagement with stakeholders to ensure any legislation addressing medical debt targets abusive practices without hindering access to responsible credit.
Further details on this advocacy effort can be found in the direct advocacy section of AFSA’s website.