Virginia Enacts New Protections Against Medical Debt and Junk Fees

In a significant move to help those struggling with medical debt, Governor Glenn Youngkin has signed into law (effective July 1, 2026) new legislation aimed at curbing overly aggressive medical debt collection practices.

The Medical Debt Protection Act prohibits medical debt collectors from foreclosing on homes and limits the garnishment of wages, offering relief to Virginians burdened by medical expenses.

The law also blocks interest and late fees on medical debt for the first 90 days after a bill is due, and after that, any interest can’t be more than 3% a year.

Additionally, Virginia has taken steps to eliminate hidden “junk fees” in consumer transactions. The newly signed legislation requires businesses to disclose the full price of goods and services upfront, ensuring transparency and helping consumers avoid unexpected charges.

Check out Michael Pope’s report, including an interview with VPLC Executive Director Jay Speer, on RADIO IQ.