California Consumer Protection Laws: Impact on Medical Debt and Credit Scoring
Governor Newsom has signed Senate Bill 1061, a bill that prohibits the use of medical debt when calculating credit scores, into law before the deadline for pending legislation at the end of September.
Key Aspects of SB 1061
SB 1061 introduces critical updates to California consumer protection laws, specifically targeting how medical debt is treated by credit reporting agencies. Below are the main points of the legislation:
- Effective Date: The law takes effect on January 1.
- Targeted Debt: Medical debt will not impact credit scores.
- Consumer Impact: Improved credit ratings for many Californians.
Reactions from Key Figures
Attorney General Rob Bonta has lauded this legislative change, emphasizing its protective measures for consumers facing medical debt. State Senator Limón has also been a staunch advocate for this reform, reinforcing the importance of consumer rights.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.