3 New California Consumer Debt Laws for 2015

While 2015 saw 930 new laws enter the books in California, I found only 3 relate to consumer debt. Here is a summary with links to the actual laws:

Medical Services on Credit (S B 1256 ) makes it illegal for a health care provider to arrange for financing a procedure to a patient who has been received general anesthesia, conscious sedation, or nitrous oxide. The law would also prohibit a healing arts licensee, or employee or agent of a licensee, from charging treatment not yet rendered or costs not yet incurred to an open-end credit extended or a loan by a 3rd party that is arranged for or established in the health care provider’s office without first providing the patient with specified information regarding the treatment and services to be rendered, and ensuring the patient’s receipt of the treatment plan. A person who willfully violates this law is subject to civil liability including actual and punitive damages and, under certain circumstances, seniors and disabled persons may seek additional damages of up to $5,000.

Relief of Debt Income Exclusion ( AB 1393 ) Federal Law providing for exclusion from income the forgiveness of  debt related to a mortgage on one’s principal residence was extended to January 1, 2014.  This new law would mirror the federal extension for California income tax purposes.

Closing a Line of Credit ( AB 1770 ) If a borrower makes a request to do so, for the next 5 years beginning July 1, 2015, a lender is required to close a borrower’s equity line of credit and to release the lien securing the borrower’s property.

The post 3 New California Consumer Debt Laws for 2015 appeared first on Mark E. Brenner, Counselor at Law.