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SACRAMENTO, Calif. - California is set to implement a comprehensive package of consumer protection laws in 2025, marking a significant expansion of financial safeguards for state residents. Gov. Gavin Newsom signed multiple bills aimed at addressing banking fees, medical debt, subscription services, and tenant rights.
"California's new laws tackle today's biggest emerging challenges head-on. Through partnership with the Legislature, we're strengthening public safety, building more housing, and providing more resources for our communities. These practical reforms protect what matters most while creating more opportunities for all Californians," Newsom said.
Under Assembly Bill 2017, authored by former Assemblymember Timothy Grayson, state-chartered banks and credit unions will be prohibited from charging fees for declined transactions starting January 2025. The law aims to prevent financial institutions from imposing additional penalties on customers with insufficient funds.
Senate Bill 1061, introduced by Senator Monique Limón, will protect Californians' credit scores from being impacted by medical debt. The legislation prohibits credit reporting agencies from including medical debt in credit reports and prevents lenders from considering such debt in credit decisions.
Consumer subscription rights will see substantial changes through AB 2863, effective July 1, 2025. The law, authored by Assemblymember Pilar Schiavo, requires companies to obtain explicit consent before charging customers after free trials and mandates annual reminders about recurring charges. Companies must also provide advance notice of price changes and ensure cancellation processes match the simplicity of signup procedures.
New tenant protections will require landlords to photograph unit conditions for security deposit documentation under AB 2801. AB 2747 allows tenants to report timely rent payments to credit bureaus, while SB 611 prohibits excessive fees for military tenants.
Under SB 1490, authored by Senator María Elena Durazo, the food delivery industry faces new regulations. The legislation prevents delivery platforms from misrepresenting fees and requires them to obtain restaurant permission before listing establishments. Restaurants must also have clear procedures for requesting removal from delivery platforms.
These legislative changes reflect California's continued focus on consumer rights and financial protection. The laws address various aspects of daily financial transactions, from banking practices to rental agreements, establishing new standards for business operations within the state.
The implementation timeline varies, with some provisions taking effect in early 2025 and others, like the subscription service regulations, beginning mid-year.
