The law also bans using medical debt listed on a credit report as a negative factor when making credit decisions, according to a Sept. 24 news release from the governor’s office.
The legislation had been supported by several organizations, including the California Nurses Association and the National Consumer Law Center, according to a Sept. 24 news release from California Attorney General Rob Bonta, who also supported the bill.
The release from the attorney general’s office said that credit reports are meant to gauge a person’s ability to repay future debt. Medical debt is often unforeseen and not a reliable indicator of financial risk, “yet it can unfairly prevent consumers from getting loans, renting an apartment, or getting a job.”
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