I 
109TH CONGRESS 
1ST SESSION H. R. 1238 
To express the sense of the Congress with respect to the price and terms 
of credit used to pay large medical bills, to amend the Truth in Lending 
Act with respect to credit card issuers obligations for credit extended 
to pay medical expenses under certain circumstances, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 10, 2005 
Mr. HASTINGS of Florida (for himself, Ms. SLAUGHTER, Mr. SANDERS, Mr. 
OWENS, Mr. STARK, Mr. CUMMINGS, Ms. WASSERMAN SCHULTZ, Mrs. 
CHRISTENSEN, Mr. LEWIS of Georgia, Mr. CONYERS, Ms. JACKSON-LEE 
of Texas, Mr. BUTTERFIELD, Mr. MEEK of Florida, Ms. NORTON, Mr. 
WEXLER, Mr. CLAY, Mr. MICHAUD, and Mr. PAYNE) introduced the fol-
lowing bill; which was referred to the Committee on Financial Services 
A BILL 
To express the sense of the Congress with respect to the 
price and terms of credit used to pay large medical 
bills, to amend the Truth in Lending Act with respect 
to credit card issuers obligations for credit extended to 
pay medical expenses under certain circumstances, and 
for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Medical Bills Interest 
Rate Relief Act’’. 
SEC. 2. FINDINGS; SENSE OF THE CONGRESS. 
(a) FINDINGS.—The Congress finds as follows: 
(1) Many families and individuals are forced 
deep into debt by the combination of large medical 
bills and excessively high interest rates. 
(2) The policy journal Health Affairs reports 
that illness and medical bills cause half of all bank-
ruptcies. 
(3) The same report notes that over 2 million 
Americans are financially ruined by medical care 
costs each year. 
(4) Consumers whose debt consists largely of 
credit extended to pay medical expenses are 42 per-
cent more likely than other debtors to experience 
lapses in coverage. 
(5) Many of those forced into bankruptcy by 
medical expenses are middle class and have health 
insurance. 
(6) Major credit card issuers tie credit card in-
terest rates to credit records and credit scores. 
(7) However, previously unforeseen and burden-
some medical expenses may arise whereby the hos-
pital-mandated schedule of payment is more than 
the individual can immediately afford. 
(8) Hospitals often report late- or delinquent- 
payers to consumer reporting agencies thereby di-
rectly affecting the rates, terms, and availability of 
credit from other sources that might otherwise be 
used to pay the medical expenses. 
(9) Many individuals and families are forced to 
place large medical expenses on their credit cards 
over time. 
(10) Credit card issuers are able to raise inter-
est rates on late- and delinquent-payers with impu-
nity and without regards to the nature of the delin-
quency. 
(11) There currently exists no government-en-
forced ceiling cap on credit card interest rates. 
(b) PURPOSE.—The purpose of this Act is to stem 
the loss from rising instances of payment delinquencies 
and bankruptcies so that people who meet their bill pay-
ment requirements on time and in full receive the lowest 
interest rates. 
(c) SENSE OF THE CONGRESS.—It is the sense of the 
Congress that— 
(1) no American family or individual should be 
forced to choose between the health and life of a
loved one and the financial constraints of medical 
care; 
(2) financial institutions, including credit card 
issuers, should not take financial advantage of un-
foreseen, nonpreventive, or catastrophic medical situ-
ations; and 
(3) individuals or families saddled with large 
medical bills should receive a fair and equitable cred-
it rating that disregards off-schedule medical bill 
payments. 
SEC. 3. CREDIT CARD ISSUERS OBLIGATIONS FOR CREDIT 
EXTENDED TO PAY MEDICAL EXPENSES. 
Section 127 of the Truth in Lending Act (15 U.S.C. 
1637) is amended by adding at the end the following new 
subsection: 
‘‘(h) CREDIT
CARD
ISSUERS
OBLIGATIONS
FOR 
CREDIT EXTENDED TO PAY MEDICAL EXPENSES.— 
‘‘(1) IN GENERAL.—If, with respect to a credit 
card account under an open end consumer credit 
plan, the consumer notifies the credit card issuer of 
anticipated, any upcoming medical expense to be in-
curred by the consumer, or a member of the con-
sumer’s household, within 30 days of the date of the 
expense—
‘‘(A) the annual percentage rate on credit 
extended under the plan to pay such medical 
expenses shall not exceed the annual percentage 
rate in effect for any outstanding balance of the 
consumer under the plan at the time such no-
tice is given; and 
‘‘(B) the annual percentage rate extended 
under the plan to pay nonmedical expenses may 
not be increased on the basis of, or due to, the 
extension of credit to pay such medical ex-
penses. 
‘‘(2) MEDICAL
EXPENSES.—For purposes of 
this subsection, the term ‘medical expenses’ includes 
necessary treatments, drugs, tests, hospital stays, 
and expenses, doctor fees, and elective surgeries.’’. 
SEC. 4. CREDIT HISTORY REPORTING REQUIREMENT IN 
CASE OF CERTAIN MEDICAL EXPENSES. 
Section 623 of the Fair Credit Reporting Act (15 
U.S.C. 1681s–2) is amended by adding at the end the fol-
lowing new subsection: 
‘‘(f) REPORTS FURNISHED BY HOSPITALS.— 
‘‘(1) IN GENERAL.—If a consumer, who is un-
able to make full payments for medical expenses (as 
defined in section 127(h)(2)) to a hospital or other 
medical treatment facility in accordance with a
schedule of payments imposed by such hospital or 
facility, continues, in good faith, to make partial 
payments on the outstanding balance on the pre-
scribed due dates under such schedule, the hospital 
or facility may not submit negative information re-
lating to the failure of such consumer to maintain 
the payment schedule in full during the 5-year pe-
riod beginning when the consumer first fails to make 
full payment under the payment schedule. 
‘‘(2) GOOD
FAITH
PARTIAL
PAYMENT.—For 
purposes of paragraph (1), a consumer shall be 
deemed to be making partial payments in good faith 
on the prescribed due dates if the consumer is pay-
ing at least 20 percent of the amount of the sched-
uled payment for each due date.’’. 
SEC. 5. EFFECTIVE DATE. 
This Act and the amendments made by this Act shall 
take effect on January 1, 2006. 
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