Michigan SB0702 prohibits foreclosure, garnishment, and other extraordinary collection actions for medical debt.

Michigan SB0702, known as the "medical debt protection act," restricts actions taken by medical creditors and debt collectors to collect medical debt. It prohibits charging interest or late fees on medical debt exceeding 3% per annum. Extraordinary collection actions, such as foreclosure, garnishment, and arrest, are banned unless specified in a financial assistance policy. Medical creditors must enter into written agreements with debt buyers prohibiting these actions.

Michigan SB0702 prohibits foreclosure, garnishment, and other extraordinary collection actions for medical debt.

Michigan SB0702, known as the "medical debt protection act," restricts actions taken by medical creditors and debt collectors to collect medical debt. It prohibits charging interest or late fees on medical debt exceeding 3% per annum. Extraordinary collection actions, such as foreclosure, garnishment, and arrest, are banned unless specified in a financial assistance policy. Medical creditors must enter into written agreements with debt buyers prohibiting these actions.