Consumer Federation of California

CFC sponsored or co-sponsored bills on medical debt, canceling automatic subscriptions, junk and hidden fees in financial services, small business debt collection protections and cracking down on mortgage fraud among the bills

For Immediate Release: September 24, 2024

SACRAMENTO, CA – Today California Governor Gavin Newsom signed into law five bills sponsored or co-sponsored by the Consumer Federation of California (CFC). These new laws enhance consumer protections in a wide range of industries.

“The Consumer Federation of California would like to thank Governor Newsom for today signing 5 of CFC’s sponsored and co-sponsored bills. From letting consumers click or call to cancel unwanted subscriptions, to keeping medical debt off of credit reports, to protecting small businesses from unscrupulous debt collection practices, to cracking down on predatory mortgage fraud and better protecting consumers from junk fees in the banking space today is a good day for California consumers.”

The five bills signed by the Governor today are:

AB 2863 (Schiavo), allows consumers to easily click or call to cancel their automatic subscriptions (separate CFC release on ‘click/call to cancel’ bill here).

“We’d like to thank Governor Newsom for signing this bill and affirming the hard work by Assemblymember Schiavo and our CFC-led consumer coalition to put this bill on his desk,” said CFC Executive Director Robert Herrell. “Consumers have had it with pocketbook-sucking subscriptions where it is almost impossible to cancel. It should be as simple to get out of a subscription as it is to get into one. This is common sense and California now has the most comprehensive law in the nation. From gym memberships to software subscriptions to wine clubs, consumers should have control of their subscriptions and no longer endure endless stalling tactics to keep your money.”

SB 1061 (Limón), prohibits a credit reporting agency from including specified medical debt in a consumer’s credit report. 

“The Consumer Federation of California thanks Governor Newsom for signing SB 1061, and we’d like to show our profound appreciation to Senator Limón for her tireless leadership on this important consumer issue. SB 1061 is a significant step forward in the efforts to keep more medical debt off of credit reports. This is debt that consumers didn’t choose. Consumers shouldn’t be punished for getting sick or injured. While there is more work to be done on these pernicious medical debt credit cards today is a good day for California consumers.”

SB 1286 (Min) ensures debt collectors adhere to minimum standards and protects small business owners from harassment by expanding California’s debt collection law.

“The Consumer Federation of California thanks Governor Newsom for his signature on SB 1286 to help protect small business owners from the most egregious and anti-consumer debt collection practices. We thank Senator Min for authoring this bill and our small business coalition partners for pushing this important policy change through the Legislature and into law. Small business owners deserve just as much protection as consumers when it comes to debt collection practices.”

AB 2017 (Grayson), reins in junk fees and protects financially vulnerable consumers from charges they cannot afford by prohibiting a financial institution from charging a consumer a NSF fee for a declined transaction. 

“CFC appreciates Governor Newsom’s signature on AB 2017, and Assemblymember Grayson’s leadership on this issue. Non-sufficient funds (NSF) charges when the transaction has been declined are absurd and we’re glad that this growing practice has been stopped before it becomes more commonplace. This is an important step in the larger battle to crack down on hidden and junk fees in the financial services industry.”

AB 3108 (Jones-Sawyer), protects homeowners from mortgage fraud by expanding the definition or mortgage fraud to include a loan originator who knowingly causes a borrower to sign a loan or document that contains misleading statements. 

“CFC thanks Governor Newsom for signing this bill and Assemblymember Jones-Sawyer for authoring additional protections for consumers at risk of losing their home to foreclosure by cracking down on predatory mortgage fraud. We expect more District Attorneys to take up more of these cases where consumers, especially elderly and immigrant consumers in communities of color, have been taken advantage of by unscrupulous scam artists and fraudsters.”

Earlier this month, Governor Newsom signed two other measures sponsored by CFC, SB 611 (Menjivar), which would crack down on junk fees in the rental housing market, and AB 2424 (Schiavo), which enhances consumer protections in foreclosure.

About the Consumer Federation of California: The Consumer Federation of California is a nonprofit advocacy organization that, since 1960, has been a powerful voice for consumer rights. CFC campaigns for laws and regulations that place consumer protection ahead of corporate profit, either in front of the California Legislature or before state agencies in support of consumer regulations.

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