IRS Proposes New Rules for Medical Debt Collection by Tax Exempt Hospitals

Upon the passing of the Affordable Care Act, the IRS was assigned the task of developing rules to govern the collection of medical debt from patients of non-profit and tax exempt hospitals. According to Fox Business, approximately six in 10 hospitals in the U.S. operate as non-profit charitable facilities providing health care services to the poor. The rules proposed in late June would require hospitals to extend consumer protections and refrain from using aggressive debt collection practices against low income patients. Additional provisions include prohibiting tax exempt medical facilities from reporting negative information to consumer credit bureaus, foreclosing on real property, filing civil suit, and garnishing wages. The new rules would not apply to for-profit or government hospitals.
 
What effect do you think these guidelines will have on the collection of medical debts from low income patients?

Companies Offer New Credit Cards In Exchange For Promise To Pay Old Debts

There is a growing trend in the debt collection world. Although the practice has been around for many years, it is gaining popularity due to the large number of people with low credit scores that prevent them from obtaining credit. According to The Consumerist, banks and debt collectors are teaming up to offer credit cards to individuals with debt that has expired under the statute of limitations, in exchange for the promise that they will pay a portion of that old debt back. The problem is, once the consumer agrees to pay back even a portion of the old debt, it is renewed; thus allowing the collection company to make money on expired debts that they otherwise would be barred from collecting.

Would you be willing to sign up for a new credit card if it meant renewing your obligation to pay an old debt?

Bill to Allow Robocalls to Cellphones

A new proposed bill called The Mobile Informational Call Act would allow companies to use auto dialers to place pre-recorded calls to mobile phones. This type of activity has generally been outlawed in the past with few exceptions.  According to the Chicago Tribune, many consumer advocates oppose the bill that would potentially  "open the floodgates" to telemarketing and debt collection calls. Under the bill, anytime a person provides a wireless number as a means of contact, it would act as "prior express consent". In other words, if a person ordered a pizza and gave them their cell number, he or she would have just opened themselves up to receiving robocalls from the pizza shop and possibly any 3rd parties it does business with.

In light of changes in technology and the way people communicate, should companies be allowed to robocall cell phones?