Bill Extends Protection To Evicted Tenants

Consumers in some areas may face negative credit consequences if they are evicted - even if they are forced out of their apartment at no fault of their own. A recently approved bill in California would protect the state's residents from credit report damage at the fault of their landlord's foreclosure.

The measure would amend a current law that allows reporting agencies to add public information, including evictions, on a consumer's credit file. The bill places certain limits on access to eviction records following a foreclosure and requires banks to notify tenants of their rights under the law, according to San Francisco online publication BeyondChron.

Governor Arnold Schwarzenegger, who has vetoed a number of tenant protection bills in the past, has to sign the bill for it to become state law. California residents have created an online petition, urging the Governor to sign the measure.

Although the bill would not provide any debt relief to tenants, it would protect their credit rating, increasing their chances of securing employment, loans and competitive interest and insurance rates in the future.