MI SB0702

Prohibits medical creditors and debt collectors from using certain 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 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 written notice before doing so

Restricts sale of medical debt to buyers unless a legally binding agreement prohibits the buyer from using banned collection actions, limits interest to 3%, and ensures compliance with financial assistance policies

Violations are enforceable under the Michigan Consumer Protection Act; the bill takes effect only if Senate Bill No. 701 is also enacted into law