New York enacts protections for consumers with medical debt

State Issues State Legislation Debt Collection Garnishment Medical Debt Consumer Finance New York

On November 23, the New York governor signed S6522A/A7363A to prohibit certain hospitals and healthcare providers from placing liens on the primary residences of individuals with unpaid medical debts or garnishing wages to collect on unpaid bills or satisfy judgments arising from a medical debt lawsuit. “No one should face the threat of losing their home or falling into further debt after seeking medical care,” Governor Kathy Hochul said in an announcement. “I’m proud to sign legislation today that will end this harmful and predatory collection practice to help protect New Yorkers from these unfair penalties. The bill is effective immediately.