Debt Collection Protection Act
Nonprofit alleges legal violations as medical debt lawsuits continue unabated during pandemic
Gov. Michelle Lujan Grisham signed a 2021 bill into law carving out new consumer protections for people with medical debt. The law required hospitals and debt collection agencies to verify patients’ income level before taking them to court or sending a hefty bill. But some hospitals have routinely failed to do that since the Patients’ Debt Collection Protection Act took effect in July 2021, according to Nicolas Cordova, an attorney at the New Mexico Center on Law and Poverty. Among other protections, the new law requires hospitals to verify that a patient’s income status doesn’t fall below 200 percent of the federal poverty line before taking them to court or sending their unpaid bill to a collection agency like CBF Services or Kryptonite Credit Servers, two of the most prolific debt collection firms working in New Mexico. “I can tell you anecdotally, we know there are hospitals that are not doing that,” Cordova said.