California enacts consumer protection laws on medical bills and overdraft fees

On Tuesday, California Governor Gavin Newsom enacted a series of consumer protection laws aimed at alleviating financial burdens on residents. A total of 19 bills were signed, focusing on enhancing transparency and accountability across various industries. One significant measure, Senate Bill 1061, prohibits most medical debts from appearing on credit reports, ensuring that individuals seeking necessary medical care are not penalized in their ability to secure housing or employment. This legislation was championed by Senator Monique Limón and supported by Attorney General Rob Bonta, who emphasized the importance of removing barriers to care. Additionally, Assembly Bill 2863 introduces a 'Click to Cancel' option for subscription services, making it easier for consumers to cancel auto-renewals. This amendment to California's Automatic Renewal Law aims to empower consumers by providing them with greater control over their finances and reducing unnecessary charges. The bill was introduced by Assemblymember Pilar Schiavo, who highlighted the need for fair business practices. Furthermore, two bills, Assembly Bill 2017 and Senate Bill 1075, address the issue of overdraft fees imposed by banks and credit unions. These laws limit the circumstances under which overdraft fees can be charged and set a cap on the fees themselves. The legislation aims to protect consumers from excessive charges that can lead to further financial strain. Overall, these new laws represent a significant step towards consumer protection in California, reflecting a commitment to improving financial stability and fairness for residents across the state.