California Consumer Protection Laws: Impact on Medical Debt and Credit Scoring

Tuesday, 24 September 2024, 13:19

California consumer protection laws now include a significant change regarding medical debt. Attorney General Rob Bonta praised the new law prohibiting credit reporting agencies from factoring medical debt into credit scores. This move is part of SB 1061, championed by State Senator Limón, and aims to enhance consumer rights in California.
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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.


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