Gov. Phil Murphy signs law giving protections to patients with medical debt

Gov. Phil Murphy signed a law that prohibits medical debt collectors from reporting some of a patient’s debt to credit agencies and sets a limit on medical debt interest at 3%, known as the Louisa Carman Medical Debt Relief Act. It allows creditors to report debts owed to veterinarians, certain loan debts, credits card debts related to healthcare costs, and debt to insurances. If any other debt is reported to credit agencies, the law makes the debt void and the collector is at risk of a civil lawsuit. The limited reporting to credit agencies and penalties to violators are effective immediately. Other parts of the law will go into effect Jul. 22, 2025.

From New Jersey Monitor.