California bans medical bills from credit reports, limits bank overdraft fees with new consumer protection laws

California Gov. Gavin Newsom signed a package of legislation into law Tuesday aimed at protecting consumers, his office announced.

In total, 19 bills were signed by Newsom. His office said in a statement that the legislation addresses “issues that have put financial strain on Californians while setting new standards for transparency and accountability across industries.”

Medical debt barred from credit reports

Senate Bill 1061 by Sen. Monique Limón (D-Santa Barbara) will bar the inclusion of most medical bills on a credit report. Under the law, medical debt listed on a credit report will be prohibited from being considered a negative factor in decisions to extend credit.

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