California Governor Signs Law Banning Medical Debt From Credit Reports

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A new law signed by Gov. Gavin Newsom in California will prevent medical debt from appearing on credit reports, protecting consumers from the negative impact of unaffordable medical bills. This law, supported by Sen. Monique Limón and Democratic Attorney General Rob Bonta, will block health care providers and collection agencies from sharing medical debt with credit reporting agencies. While some loopholes still exist, this law aims to help those disproportionately affected by medical debt, such as low-income, Black, and Latino patients. The new law will go into effect in January and extend protections to credit reports used for employment and tenant screening.

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