New California Law Keeps Medical Debt Off Consumer Credit Reports

Cozen O'Connor
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  • 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.
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