NEW RULES, REAL PROTECTION — 2025 Consumer Law Shifts You Can’t Afford to Miss
2025 is proving to be a landmark year for consumer rights
With sweeping changes at both the state and federal level, Los Angeles residents now benefit from some of the strongest consumer protections in decades. From AI-driven debt collection limits to the removal of medical debt from credit reports, these updates are more than legal fine print—they’re tools to protect your credit, finances, and privacy.
At R23 Law, our California Consumer Protection Attorneys closely track these regulatory changes to help clients take full advantage of the law. Here’s what you need to know to stay ahead.
1. Medical Debt is Now Banned from Credit Reports in California
Effective January 1, 2025, California law prohibits medical debt from being reported to credit bureaus. That means old medical collections that used to drag down credit scores are now off-limits.
In addition:
Dispute corrections must be processed within 15 days, not 30.
Credit bureaus face $500 fines per incorrect entry after January 1.
FCRA disclosure fees are capped at $15.50.
These changes have real impact—especially for working families and renters. As noted in the infographic on page 5, even on-time rent reporting can now raise scores 15 to 25 points within six months under new state legislation.
2. AI-Driven Debt Collection Under Fire
Artificial intelligence now handles 68% of debt collection contacts in Los Angeles, but with automation comes risk. The Consumer Financial Protection Bureau found that 23% of all AI-related debt collection violations occurred in California.
Common AI-related violations include:
Robocalls made without proper consent.
Repeated calls that violate federal quiet hours.
Collection attempts without verifying the debt.
R23 Law’s California Consumer Protection Attorneys help clients file claims under the Fair Debt Collection Practices Act (FDCPA) and the Telephone Consumer Protection Act (TCPA)—both of which carry statutory damages up to $1,500 per illegal call.
3. Predatory Lending Penalties Just Got a Major Upgrade
Lenders now face tougher penalties thanks to Truth in Lending Act (TILA) updates:
Threshold for “high-cost” mortgage loans increased, offering greater coverage for moderate-income borrowers.
The CFPB issued 1,847 enforcement actions in California last year, resulting in $89.3 million in consumer refunds.
If you’ve been misled about interest rates, fees, or loan terms, the updated TILA standards give you stronger legal standing to pursue compensation.
4. Telemarketing Crackdowns Target Harassing Calls
The Federal Trade Commission (FTC) dramatically increased enforcement in 2025:
Companies now face $46,517 fines per telemarketing violation.
147,000 complaints came from Los Angeles County in 2024 alone.
Written consent is now required for autodialed marketing calls.
Consumers must be able to opt out within 10 business days or face additional penalties of $500/day.
If you’re getting repeated, unwanted robocalls—especially from debt collectors or scam lenders—you may be eligible for significant compensation.
5. Digital Privacy & Payment Security Strengthened
2025 also brought aggressive changes in tech regulation:
California’s five state-level privacy laws are now in effect.
Two-factor authentication is required for account modifications.
Provisional credit must be issued in 2 business days (not 10) for Apple Pay and Google Pay fraud claims.
Crypto platforms must report activity above $3,000/day to federal authorities.
Companies failing to comply can now face litigation for data misuse, improper privacy disclosures, and financial negligence.
R23 Law: Your 2025 Consumer Protection Advocates
At R23 Law, our California Consumer Protection Attorneys are helping Los Angeles consumers navigate these legal updates—and use them to their full advantage. Whether you're dealing with:
Credit report errors (especially involving medical debt),
Aggressive debt collection, robocalls, or illegal phone harassment,
Predatory lending practices, or
Digital fraud or data misuse,
—we’re here to protect your rights and pursue full compensation.
Don’t Wait—Your Rights Have Never Been Stronger
If you’ve been affected by any of these issues, the time to act is now. Thanks to 2025’s new consumer laws, the penalties for companies are higher, and the protections for you are clearer than ever.
📞 Schedule a free consultation with R23 Law’s California Consumer Protection Attorneys
Let’s hold these companies accountable—and rebuild your financial peace of mind.
📍 Serving all of California
