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Bill

AB 2746

Consumer debt: medical credit cards and medical debt.

2025-2026 Regular Session Introduced by Mia Bonta and 4 co-sponsors

AB 2746 requires clear APR disclosures and written consent showing medical credit cards are credit cards, and restricts medical-card debt data in credit reports at major medical fa

In committee: Set, first hearing. Hearing canceled at the request of author.
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Bill Summary · AB 2746

Summary of AB 2746 (2025-2026) – California

Purpose and intent

AB 2746 aims to regulate medical credit cards and the treatment of medical debt in California. The bill defines medical credit cards, establishes required disclosures and consumer consent, and tightens restrictions on when medical-debt information may appear in consumer credit reports. The overarching goal is to ensure consumers clearly understand that a medical credit card is a credit card (not a payment plan) and to limit the inappropriate use of medical-debt information in credit decisions and reporting.

Key provisions and changes

  1. Definition and disclosure for medical credit cards (Civil Code, new section 1748.16)

    • An entity may not enter into a contract for a medical credit card with an individual unless it:
      • Provides a clear and conspicuous disclosure that the medical credit card is a credit card and not a payment plan.
      • Discloses the annual percentage rate (APR) applicable to the medical credit card.
      • Obtains the individual’s express written consent, evidenced by a signature, acknowledging receipt and understanding of the disclosure and the distinction between a credit card and a payment plan.
    • A “medical credit card” is defined as a credit card issued under an open-end or closed-end plan specifically for payment of medical services, products, or devices.

  2. Definitions and consumer-protection framework (Civil Code, amended sections)

    • Updates to definitions related to consumer credit reports, adverse action, and related terms, in alignment with the bill’s expanded focus on medical debt and medical credit cards.
    • Clarifies the scope of medical debt as it relates to credit reporting and lending decisions.

  3. Medical debt and credit reporting restrictions (Civil Code, new section 1785.13.1)

    • A consumer credit reporting agency shall not make a consumer credit report that contains information from a medical credit card for purchases at specified medical facilities (e.g., acute care hospitals, general hospitals, specialty hospitals, pharmacies, certain providers).
    • The prohibition targets reports that would include medical-credit-card-related information for purchases at those facilities, limiting the spread of medical-credit-card data in reports used to evaluate creditworthiness at health-related locations.

  4. Ambit and scope context

    • The bill clarifies that some existing protections around medical debt in credit reporting do not apply to cosmetic surgery, and it refines what counts as medical debt for purposes of reporting.

Who and what would be affected

  • Stakeholders affected include:

    • Consumers who use or are offered medical credit cards.
    • Medical providers and facilities that may participate in offering or accepting medical credit cards.
    • Credit card issuers and lenders offering medical-specific credit products.
    • Consumer credit reporting agencies (CRAs) and entities that rely on medical-debt data for credit decisions.

  • Affected activities:

    • Disclosure and consent processes for medical credit card offerings.
    • Reporting practices by CRAs related to medical debt and medical-card purchases at certain healthcare facilities and pharmacies.
    • Determinations of adverse actions in credit-related decisions involving medical debt.

Procedural and timeline aspects

  • The bill was introduced in February 2026 and underwent multiple committee reviews, amendments, and re-referrals, with hearings noted and changes to text across April 2026.
  • Provisions would take effect as enacted; the bill includes standard California constitutional provisions regarding state reimbursement and local program costs.
  • No explicit funding appropriation is requested in the bill (no state appropriation required).

Bottom line

AB 2746 seeks greater transparency in medical credit card offers, ensuring consumers are clearly informed that such products are credit cards with APR disclosures and require written consent. It also tightens restrictions on how medical-credit-card information can appear in consumer credit reports, particularly for purchases at major medical facilities, to protect consumers from potentially adverse credit outcomes stemming from medical debt data.

Compiled from official sources — confirm details with the bill’s official record.

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