When a loved one enters a nursing home, family members are often in a state of crisis and may sign complex contracts without realizing they are being asked to personally guarantee payment. These 'third-party guarantor' clauses are often illegal under the Nursing Home Reform Act, yet debt collectors frequently use them to harass relatives for tens of thousands of dollars.

If this bill becomes law, it ensures that the CFPB continues to monitor and penalize companies that try to collect these invalid debts. Without this bill, the removal of the 2022 guidelines could signal to debt collectors that they can resume aggressive collection tactics against family members, potentially leading to ruined credit scores and financial ruin for people who never legally owed the money in the first place.