Medical Debt Interest Rate Cap (Consumer Protection Act)

Current understanding

Michigan HB5254 would amend section 3 of the Michigan Consumer Protection Act (1976 PA 331, MCL 445.903) to lower the maximum interest rate that may be charged on medical debt. The bill is tie-barred to HB5255 and has passed a chamber, signaling active legislative movement on medical debt affordability. Specific rate figures and effective date terms will be added as the bill text is reviewed.

Evidence log

• 2026-03-11 — Consumer credit: credit reports and reporting agencies; collection and reporting of medical debt information; regulate. Creates new act.: cross-connection with medical-debt-credit-reporting: Companion medical debt consumer protections: SB0451 regulates credit reporting of medical debt while the interest rate cap limits how the same debt can accrue. (novelty: 3)
• 2026-06-23 — Consumer credit: credit reports and reporting agencies; collection and reporting of medical debt information; regulate. Creates new act.: cross-connection with medical-debt-credit-reporting: Part of a coordinated Michigan consumer-protection package targeting medical debt: interest caps at the front end, credit-report restrictions at the reporting end. (novelty: 3)
• 2026-06-23 — Civil procedure: foreclosure; foreclosure or garnishment of wages for medical debt; prohibit. Creates new act. TIE BAR WITH: HB 5254’25: cross-connection with medical-debt-wage-foreclosure-prohibition: Both address consumer protections specific to medical debt collection in Michigan. (novelty: 3)

Open questions

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