Consumer debt: medical credit cards and medical debt.

Existing law regulates the issuance, use, and processing of credit cards and credit card transactions. Existing law, the Areias Credit Card Full Disclosure Act of 1986, requires a credit card issuer, with each billing statement provided to a cardholder in this state, to provide certain information on the front of the first page of the billing statement. This bill would regulate offers for a medical credit card, which the bill would define as a credit card issued under an open-end or closed-end plan offered specifically for the payment of medical services, products, or devices. Specifically, the bill would require an entity that offers a medical credit card to provide a clear and conspicuous disclosure to an individual stating that the product is a credit card and not a payment plan. The bill would require the disclosure to include the annual percentage rate applicable to the medical credit card. The bill would require the entity to obtain the individual's express written consent, as evidenced by a signature, acknowledging that the individual has received the disclosure and understands that the medical credit card is a credit card and is not a payment plan. Existing law, the Consumer Credit Reporting Agencies Act, defines and regulates consumer credit reports and consumer credit reporting agencies. Existing law regulates the treatment of medical debt in this regard by, among other things, prohibiting a consumer credit reporting agency from making any consumer credit report containing medical debt information, prohibiting a person who uses a consumer credit report in connection with a credit transaction from using medical debt as a negative factor when making a credit decision, and prohibiting a person from furnishing information regarding a medical debt to a consumer credit reporting agency. Existing law makes a violation of certain provisions related to medical debt by a person holding a license or permit issued by the state to be deemed a violation of the law gov