Texas House Bill HB864

Texas 2009 - 81st Regular

Caption

Relating to the extension of credit to an individual who incurs debt for necessary medical treatment.

Impact

The implementation of HB 864 is expected to have a positive impact on individuals facing significant medical bills, as it would provide them with more leeway to secure loans or financial assistance during critical times. By prohibiting discrimination against those with medical debts, the bill aims to enhance access to credit for vulnerable individuals who may otherwise be denied financial opportunities due to their health issues. This change aligns with broader consumer protection objectives by reinforcing equitable treatment in credit extension across state laws.

Summary

House Bill 864 seeks to amend the Texas Finance Code to ensure that individuals incurring debt for necessary medical treatment for life-threatening conditions are not unjustly denied credit. The bill stipulates that no authorized lender or financial institution can refuse to extend credit to an individual based solely on their medical debt in cases where a statement from a medical treatment provider confirms the necessity of the treatment. This provision aims to safeguard individuals in dire medical situations who require financial assistance to address their urgent health needs.

Contention

However, there are points of contention surrounding the bill, particularly concerning the potential implications for lenders. Some stakeholders argue that such measures could create additional risk for lending institutions, as they may have to extend credit to individuals with high medical debt levels. There are concerns that this could lead to more defaults and impact the overall stability of lending practices within the state. Balancing the need for consumer protection against the interests and sustainability of financial institutions is likely to be a significant concern as discussions around the bill progress.