Chicago's Mayor Brandon Johnson has taken a significant step to protect residents from aggressive debt collection practices by signing executive order EO 2025-10, which bans the sale of medical debts. Medical debt arises when patients are unable to pay for healthcare services that their insurance, public programs, or personal payments do not cover. The previous practice of the city selling these debts to private collection agencies resulted in the exploitation of vulnerable residents through predatory collection tactics.

In announcing the order, Johnson emphasized the need for clear communication and fair treatment for those in debt, stating, 'I will not allow the sale of debt to lead to immoral and predatory tactics against the residents of Chicago.' The new regulations will require that individuals receiving medical debt notifications must have clear access to adjudication processes and transparent billing practices, effectively prioritizing the long-term financial stability of the city's residents.

This development is particularly noteworthy as it reflects a growing trend across various U.S. cities to address the burdensome impacts of medical debt. By implementing such measures, Chicago is setting a precedent for responsible debt collection standards, ultimately aiming to improve the relationship between healthcare providers, debt collectors, and the community. This initiative could empower residents and foster a healthier economic environment in the city.