Consumer debt: medical credit cards and medical debt.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Banking and Finance
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Overview
This bill aims to regulate medical credit cards and the reporting of medical debt. It requires entities offering these cards to clearly disclose that they are credit cards, not payment plans, and obtain written consent from the individual. The bill also prohibits consumer credit reporting agencies from including information from medical credit card purchases made at specific medical facilities, such as hospitals and pharmacies, in consumer credit reports. Furthermore, it modifies the definition of ‘medical debt’ to clarify what constitutes debt related to medical services.
Key provisions
- Requires clear and conspicuous disclosure that a medical credit card is a credit card, not a payment plan.
- Mandates obtaining express written consent from individuals before issuing a medical credit card.
- Prohibits consumer credit reporting agencies from including information from medical credit card purchases at acute psychiatric hospitals, general acute care hospitals, special hospitals, pharmacies, and certain other healthcare providers in consumer credit reports.
- Defines ‘medical debt’ more narrowly, excluding certain types of debt like general purpose unsecured installment loans.
- Modifies the definition of ‘medical debt’ to specifically exclude cosmetic surgery.
- Adds Section 1748.16 to the Civil Code to address medical credit card disclosures.
- Adds Section 1785.13.1 to the Civil Code to prohibit credit reporting agencies from including medical credit card purchase information.
- Provides that no reimbursement is required for local agencies or school districts due to the bill creating a new crime.
Bill text
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Sponsors
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6 on record
Primary sponsor
Cosponsors
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