california illgal to report late rental payments from covid

California’s Moratorium on Reporting Late Rental Payments Due to COVID-19

Introduction

Hey there, readers! In the wake of the unprecedented challenges brought on by the COVID-19 pandemic, many aspects of our lives have been impacted, including the way we pay rent. In California, there’s a crucial piece of information renters need to be aware of: it’s illegal for landlords or property managers to report late rental payments to credit bureaus during the COVID-19 state of emergency. Understanding and utilizing this moratorium can significantly protect your credit history during these uncertain times.

Section 1: Understanding the Moratorium

1.1 Legislative Background

In response to the financial hardships faced by renters during the pandemic, California Governor Gavin Newsom signed Assembly Bill 3088 into law in September 2020. This bill enacted a statewide moratorium on reporting late rent payments to credit reporting agencies from September 1, 2020, through March 31, 2023.

1.2 Protection for Renters

This moratorium serves as a crucial safety net for renters. Late rent payments can negatively impact credit scores, making it more challenging to qualify for loans, secure affordable insurance, or even find housing in the future. By prohibiting such reporting, California aims to protect renters’ financial stability during this challenging time.

Section 2: Reporting Obligations

2.1 Landlord Responsibilities

Under the moratorium, landlords are legally obligated to refrain from reporting late payments to credit bureaus during the specified period. This applies even if the tenant has not notified the landlord of their financial hardship.

2.2 Tenant Responsibilities

While tenants are not required to notify their landlords of financial difficulties, it’s always advisable to maintain open communication with landlords. Providing documentation of hardship can further protect renters from potential legal consequences and ensure they receive the necessary support.

Section 3: Enforcement and Penalties

3.1 Legal Consequences

Landlords who violate the moratorium by reporting late payments to credit bureaus can face legal consequences. Tenants may file a complaint with the California Department of Real Estate (DRE), which can investigate and enforce the law.

3.2 Reporting Errors

If you discover that a late payment has been reported to a credit bureau during the moratorium period, contact the credit bureau immediately and dispute the error. Provide documentation to support your claim and request the removal of the inaccurate information.

Section 4: Detailed Table Breakdown

Section 5: Related Resources

5.1 California Department of Real Estate (DRE)

https://www.dre.ca.gov/

5.2 California Legal Aid

https://www.californialegalhelp.org/

Section 6: Conclusion

The moratorium on reporting late rental payments from COVID in California provides renters with much-needed protection during these challenging times. By understanding the moratorium, tenants can safeguard their credit scores and financial stability. If you have any questions or concerns, don’t hesitate to reach out to the resources listed above. Stay safe, readers!

FAQ about California’s Ban on Reporting Late Rental Payments from COVID

Q: What is the new law about reporting late rental payments?

A: Assembly Bill 1436 (AB 1436) prohibits landlords and property managers from reporting late rent payments during the COVID-19 pandemic to credit bureaus.

Q: What dates does the law cover?

A: The ban applies to late rent payments between March 1, 2020 and September 30, 2023.

Q: Who is covered by the law?

A: The law applies to all tenants and landlords in California.

Q: How long does the ban last?

A: The ban ends on September 30, 2023.

Q: Does the law apply to all late payments?

A: No, the law only applies to late rent payments related to the COVID-19 pandemic.

Q: What should I do if my landlord tries to report a late payment?

A: Contact the California Department of Consumer Affairs at 1-800-952-5665 or visit their website at www.dca.ca.gov.

Q: What are the penalties for violating the law?

A: Landlords and property managers who violate the law could face fines and other penalties.

Q: What if I have already had a late payment reported to a credit bureau?

A: You should contact the credit bureau and dispute the report. You can also file a complaint with the California Department of Consumer Affairs.

Q: What resources are available to help me prevent late payments?

A: The state of California and local organizations offer financial assistance and resources to help tenants pay rent. Contact your local community action agency or visit the California Department of Housing and Community Development website at www.hcd.ca.gov.

Q: Where can I get more information about the law?

A: You can find more information about the law on the California Department of Consumer Affairs website at www.dca.ca.gov or by calling 1-800-952-5665.