SACRAMENTO — Gov. Gavin Newsom signed a package of bills that will strengthen protections for consumers, addressing issues that have put financial strain on Californians while setting new standards for transparency and accountability across industries.
Medical debt relief
SB 1061 by Sen. Monique Limón (D-Santa Barbara) targets the devastating impact of medical debt on consumers. Under this new law, medical debt will no longer be included on consumers’ credit reports, ensuring that people are not penalized for the high costs of necessary healthcare. The bill also prohibits using any medical debt listed on a credit report as a negative factor when making credit decisions, and gives individuals more room to address their medical bills before debt collection and reporting actions can take place.
Making it easier to cancel subscriptions
AB 2863 by Assemblymember Pilar Schiavo (D-Chatsworth) addresses complicated auto-renewing subscription services that are easy to sign up for but hard to cancel. The bill requires companies offering automatic renewals and continuous services to provide consumers a means to cancel the subscription using the same medium they used to sign up; for example, a person who subscribes online has to be given an online click-to-cancel option. This ensures that consumers can easily exit from services they no longer want, without being trapped by confusing processes or hidden fees.
Protecting against unfair fees
AB 2017 by Assemblymember Tim Grayson (D-Concord) and SB 1075 by Sen. Steven Bradford (D-Gardena) address unfair banking practices. AB 2017 prohibits certain banks and credit unions from charging non-sufficient funds fees when a transaction is declined due to the consumer having insufficient funds. SB 1075 sets limits on the amount credit unions can charge for overdraft fees. These bills aim to protect lower-income Californians that are disproportionately impacted by financial fees that can push them deeper into financial hardship