§ 1785.27. — 1785.27. (Amended by Stats. 2025, Ch. 200, Sec. 2.)

California § 1785.27.

• Jurisdiction: California
• Code CIV: Civil Code - CIV
• Div. 3.: DIVISION 3. OBLIGATIONS
• Title: 1.6.
• Part 4.: TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT
• Ch. 3.5.: CHAPTER 3.5. Obligations of Furnishers of Credit Information

Text

(a)
A person shall not furnish information regarding a medical debt to a consumer credit reporting agency.
(b)
A medical debt is void and unenforceable if a person knowingly violates this section by furnishing information regarding the medical debt to a consumer credit reporting agency.
(c)
(1)
On or after July 1, 2025, it is unlawful to enter into a written contract creating a medical debt that does not include the following term:
“A holder of this medical debt contract is prohibited by Section 1785.27 of the Civil Code from furnishing any information related to this debt to a consumer credit reporting agency. In addition to any other
penalties allowed by law, if a person knowingly violates that section by furnishing information regarding this debt to a consumer credit reporting agency, the debt shall be void and unenforceable.”
(2)
A written contract entered into on or after July 1, 2025, that does not include the term described in paragraph (1) is void and unenforceable.
(d)
A violation of this section by a person holding a license or permit issued by the state shall be deemed to be a violation of the law governing that license or permit.

Legislative History

Amended by Stats. 2025, Ch. 200, Sec. 2. (AB 1521) Effective January 1, 2026.