California Enacts Groundbreaking Law to Shield Medical Debt from Credit Reports Starting 2025
Sacramento, Calif. — A newly passed California state law, set to take effect on January 1, 2025, will prevent the reporting of medical debt to credit agencies, thus safeguarding Californians’ credit scores from the detrimental impact of such financial burdens. This legislative shift comes as a relief to millions within the state who grapple with the overwhelming challenge of medical expenses. Medical debts, often unforeseen and unavoidable, can severely impair an individual’s financial standing. Currently, such debts can linger on credit reports, influencing decisions on loans, housing, and employment due to lower credit scores. This … Read more