California Governor Signs Law Banning Medical Debt From Credit Reports

Californians with unpaid medical bills will no longer have their debts appear on their credit reports, following legislation signed by Gov. Gavin Newsom. The law, backed by Democratic Attorney General Rob Bonta, bars healthcare providers and debt collectors from sharing patients’ medical debts with credit agencies. But a loophole exists for debts from medical credit cards or specialty loans. The legislation, effective in January, also extends protections to credit reports used for employment and tenant screening.