New in 2025: Protecting consumers

California is enacting new laws to protect consumers from unfair financial practices and provide greater control over their money.

• Eliminating extra fees for declined transactions: Under AB 2017 by Assemblymember, now Senator, Timothy Grayson (D-Concord) state-chartered banks and credit unions can no longer charge you a fee for declined transactions. This means if a purchase is declined because someone’s account balance is too low, they won’t face additional penalties that make financial challenges even harder. 

 

• Protecting credit scores from medical debt: SB 1061 by Senator Monique Limón (D-Santa Barbara) makes sure Californians’ credit scores aren’t harmed by medical debt. This law stops credit agencies from including  medical debt on an individual’s credit report and prevents lenders from considering it in credit decisions, ensuring no one’s credit suffers simply because they needed health care.

 

• Click to cancel – no more subscription traps: AB 2863 by Assemblymember Pilar Schiavo (D-Santa Clarita Valley) will strengthen consumer rights around subscription services and free trials. Starting July 1, 2025, companies must get clear consent before charging customers after a free trial ends, send annual reminders about recurring charges, and make cancellation just as simple as signing up. Customers will receive advance notice of any price changes, allowing time to decide whether to continue the subscription.

 

• Stronger protections for renters: Starting next year, new laws strengthen tenant protections in California. Landlords must document unit conditions with photos for security deposits (AB 2801 by Assemblymember Friedman), give tenants the option to report on-time rent payments to boost credit (AB 2747 by Assemblymember Haney), and are banned from charging unnecessary fees or higher security deposits for military tenants (SB 611 by Senator Menjivar).

 

• Fairer deals for restaurants and consumers: SB 1490 by Senator María Elena Durazo (D-Los Angeles) ensures food delivery platforms can’t misrepresent fees or keep a restaurant on their app without permission. It also requires a straightforward way for a restaurant to be removed from the platform if they choose. This means local businesses have more control, and there will be more honest pricing and disclosures when ordering food or beverages online.

💡 Why it matters: These laws protect Californians from unfair financial practices – whether it’s unexpected fees, medical debt affecting credit scores, or subscription charges they never meant to approve. They put more control back in consumers’ hands for managing personal finances.