Attorney General Ellison celebrates the start of the Debt Fairness Act

As of October 1, medical debt will no longer be automatically transferred to one’s spouse, cannot be used to deny medically necessary care, can no longer be reported to credit reporting agencies

Ellison also announces debt fairness legal clinic to help Minnesotans struggling with medical debt

October 2, 2024 (SAINT PAUL) – Today, the day after major pieces of the new Minnesota Debt Fairness Act took effect, Attorney General Keith Ellison shared important information about the new legal protections Minnesotans have thanks to the Debt Fairness Act. Those protections include bans on denying medically necessary care due to unpaid bills, reporting medical debt to credit reporting agencies, and automatically transferring medical debt to one’s spouse upon their passing.

Ellison also announced that his Office will hold a free legal clinic for Minnesotans with medical debt on Saturday, October 5 in Minneapolis. At the clinic, members of the public will be able to learn about their new rights under the Debt Fairness Act and will be able to meet with an attorney for one-on-one advice about how to deal with debt.

The Debt Fairness Act takes effect

On June 17, 2024, Governor Walz signed the Minnesota Debt Fairness Act into law. On October 1, 2024, significant pieces of the Minnesota Debt Fairness Act took effect. The newly effective provisions of the law aim to make Minnesota’s debt collection system fairer and more just, particularly when it comes to medical debt—that people generally do not ask for, cannot shop for, and have virtually no choice in taking on.

“We can all agree that you should pay back what you borrow,” said Attorney General Ellison. “We can also agree that debt should not drag you into poverty. That is why my Office partnered with Senator Boldon and Representative Reyer to pass the Minnesota Debt Fairness Act. Thanks to the Debt Fairness Act, Minnesotans can sleep easier knowing that our debt collection system is more fair, just, and dignified. Spouses cannot be forced to pay off each other's medical debt in life or in death, hospitals cannot deny necessary care to people struggling with their bills, and medical debt can no longer destroy the credit that Minnesotans have spent years or decades building. I am very grateful to Senator Boldon and Representative Reyer for their leadership on these important issues, and I look forward to continuing our successful partnership in this next legislative session.”

Provisions of the Debt Fairness Act effective on October 1, 2024

1. Ban medical debt from being reported to credit reporting agencies.
2. Ban medical providers from withholding medically necessary care due to unpaid debt.
3. Eliminate the old law automatically transferring medical debt to a patient’s spouse.
4. Establish new medical debt collection rights, including:
   1. Parties collecting medical debt cannot use robo dialers to collect debt.
   2. Parties collecting medical debt cannot say medical services will be withheld if the debt is not paid.
   3. Parties collecting medical debt cannot contact third parties to try and collect the debt.
   4. Parties collecting medical debt must notify patients of their right to hire an attorney or contact the Attorney General regarding the debt.
   5. Parties collecting medical debt cannot violate the Fair Debt Collection Practices Act or any other Minnesota statute.
      1. These rights are enforceable by the Attorney General and private right of action, and include attorney fee-shifting and a per-violation statutory damage award pegged to the Consumer Price Index.
5. Require that Minnesotans who successfully defend medical debt collection lawsuits must be paid their attorney’s fees incurred in defending the case.
6. Require medical providers to publish their medical debt collection practices.
7. Establish new process for patients to dispute incorrect coding or billing of medical care.

A full list of the provisions of the Minnesota Debt Fairness Act and when they take effect is available here. On August 1, 2024, provisions of the bill improving bankruptcy protections took effect. On April 1, 2025, new income-based limits on wage garnishment will take effect.

Senator Boldon and Representative Reyer were the chief legislative authors of the Debt Fairness Act, in collaboration with Attorney General Ellison’s Office.

The Debt Fairness Legal Clinic

Attorney General Ellison also announced that, later this week, his Office will hold a free Debt Fairness Legal Clinic for Minnesotans struggling with debt. There, members of the public experiencing problems with debt will have a chance to learn how common debts, such as credit card debts, medical debts, and unpaid bills go through the collections process.  At the clinic, people with debt issues may be able to briefly meet with an attorney for free to discuss their problems and concerns.

The clinic will take place on Saturday, October 5, 2024, from 10:00 a.m. to 5:00 p.m. at NorthPoint Health & Wellness Center’s Conference Center at 1256 Penn Ave N, Ste 5200, Minneapolis, MN 55411. Click here for more information.

The clinic will not be able to immediately resolve debt problems that day, but instead can serve as a starting point where people struggling with lingering debt issues can gain a basic understanding of what options may be available for dealing with debt problems so they can move forward with their lives.

The clinic will not be able to assist businesses or business owners with commercial debt issues, and the clinic will not be able to assist any one with secured debt problems, including, but not limited to, mortgage issues, home equity loan issues, and car repossession issue. Out of respect for the privacy of attendees, the clinic will not be open to members of the media.

Concurrent with the Debt Fairness Clinic, Attorney General’s Office will offer an expungement clinic that can help Minnesotans who qualify to expunge certain criminal offenses. Minnesotans can learn more about the Office’s expungement program here.

Consumers in Minnesota who would like to report a violation of Minnesota’s consumer protection laws are encouraged to file a report with the Attorney General’s Office using this online form. The Office can also be reached by calling (651) 296-3353 (Metro area) or (800) 657-3787 (Greater Minnesota).