MI HB5255

Prohibits medical creditors and debt collectors from using certain extreme collection actions including causing arrest, foreclosing on real property, placing liens on personal property, or garnishing wages of individuals who qualify for financial assistance

Limits interest and late fees on medical debt to a maximum of 3% per year, with no interest or late fees allowed until 90 days after the final invoice due date

Requires medical creditors to wait at least 120 days after the final invoice due date before taking any extraordinary collection action, and must provide 30 days advance notice to patients

Restricts the sale of medical debt to buyers only if a written agreement prohibits extraordinary collection actions, caps interest at 3%, and ensures debt can be returned if the patient qualifies for financial assistance

Applies to "large healthcare facilities" including hospitals and healthcare providers with annual revenue of at least $20 million, with violations enforceable under the Michigan Consumer Protection Act