ARTICLE
8 October 2024

New California Law Keeps Medical Debt Off Consumer Credit Reports

A bill co-sponsored by California AG Rob Bonta which prohibits consumers' medical debt from being reported on credit reports was signed into law and will go into effect on January 1, 2025.
United States California Consumer Protection
  • A bill co-sponsored by  California AG Rob Bonta which prohibits consumers' medical debt from being reported on credit reports was signed into law and will go into effect on January 1, 2025.
  • In his statement regarding the newly enacted law,  Senate Bill 1061, AG Bonta explained that credit reports are meant to gauge an individual's ability to repay future debt and medical debt is not a reliable indicator of financial risk because is often unforeseen.
  • AG Bonta has also previously sent a  letter to the CFPB supporting its rulemaking process to remove medical bills from consumers' credit reports.

To read the full report click here

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More