Medical Debt Collection: Know Your Rights and Protections
Know your rights when dealing with medical debt collectors. Learn about the $500 credit reporting threshold, dispute rights, and how to stop harassment.
Your Rights When Medical Debt Goes to Collections
Medical debt is different from other types of debt, and you have specific protections. Recent changes have made medical debt less damaging to your credit, and federal law protects you from abusive collection practices. Understanding your rights can help you deal with collectors effectively and protect yourself from harassment.
Medical Debt and Credit Reports: 2026 Rules
Major changes to how medical debt affects credit went into effect in 2023-2024 and continue to protect consumers:
- Medical debt under $500 cannot appear on credit reports
- Paid medical collections must be removed from credit reports
- Medical debt in collections gets a 1-year waiting period before reporting
- Medical debt from veterans receiving care at VA facilities cannot be reported
- FICO 9 and VantageScore 3.0+ weigh medical debt less than other debt
- Many lenders now exclude medical debt from lending decisions
Fair Debt Collection Practices Act (FDCPA) Protections
The FDCPA protects you from abusive, unfair, or deceptive collection practices. Debt collectors must follow strict rules:
- Cannot call before 8am or after 9pm in your time zone
- Cannot contact you at work if you tell them your employer disapproves
- Must stop contacting you if you send a written cease-contact request
- Cannot use threats, profanity, or harassment
- Cannot discuss your debt with others (except spouse/attorney)
- Must send written validation notice within 5 days of first contact
- Must verify the debt if you dispute it in writing within 30 days
- Cannot sue or threaten to sue on time-barred debt
How to Dispute Medical Debt
If you believe a medical debt is incorrect, you have the right to dispute it. Within 30 days of first contact from a collector, send a written dispute letter requesting debt validation. The collector must stop collection until they provide verification. Dispute errors on your credit report directly with the credit bureaus (Equifax, Experian, TransUnion).
Statute of Limitations on Medical Debt
Every state has a statute of limitations—a time period after which creditors can no longer sue you to collect a debt. For medical debt, this ranges from 3-10 years depending on your state. After this period, the debt is "time-barred." Collectors can still try to collect, but they cannot successfully sue you. Important: Making a payment can restart the clock.
- California: 4 years
- Texas: 4 years
- Florida: 5 years
- New York: 6 years
- Pennsylvania: 4 years
- Ohio: 6 years (was 15 until 2012)
- Check your state's specific statute of limitations
Negotiating with Medical Debt Collectors
Debt collectors often purchase medical debt for pennies on the dollar, so they have room to negotiate. You may be able to settle for 25-50% of the balance. Always get settlement agreements in writing before paying. Request "pay for delete" where the collector agrees to remove the account from your credit report upon payment.
How to Handle Medical Debt in Collections
Request debt validation
Within 30 days of first contact, send a written letter requesting validation of the debt. The collector must provide proof you owe the debt and the amount is correct.
Verify the debt is yours and accurate
Compare the collector's information to your records. Check for errors in the amount, dates, and whether you actually received the services. Dispute any inaccuracies.
Check the statute of limitations
Determine if the debt is time-barred in your state. If it is, the collector cannot sue you. Be careful—making a payment can restart the clock.
Negotiate a settlement
If you owe the debt, negotiate. Offer a lump sum of 25-50% to settle in full. Request a "pay for delete" agreement. Get everything in writing before paying.
Document everything
Keep records of all communications. Send letters via certified mail with return receipt. Note dates, times, and content of phone calls. This documentation is crucial if you need to file a complaint.
Frequently Asked Questions
Can medical debt affect my credit score?
Medical debt under $500 cannot appear on credit reports. Paid medical collections must be removed. Unpaid medical debt over $500 can appear, but only after a 1-year waiting period. Recent credit scoring models weigh medical debt less heavily than other debt.
How long can medical debt be collected?
The statute of limitations for medical debt varies by state, typically 3-10 years. After this period, collectors can still contact you but cannot successfully sue you. The debt can remain on your credit report for up to 7 years from the date of delinquency.
Can debt collectors call my family about my medical debt?
No. Under the FDCPA, collectors cannot discuss your debt with anyone except you, your spouse, your attorney, or a co-signer. They can contact others only to find your contact information, and cannot mention the debt.
What should I do if a collector is harassing me?
Document the harassment with dates, times, and details. Send a written cease-contact letter via certified mail. File a complaint with the Consumer Financial Protection Bureau (CFPB) and your state attorney general. You may have grounds for a lawsuit under the FDCPA.
Should I pay old medical debt in collections?
It depends. If the debt is time-barred and not on your credit report, paying may not benefit you and could restart the statute of limitations. If it's affecting your credit or you may be sued, negotiate a settlement for less than the full amount.
Can I go to jail for not paying medical debt?
No. You cannot be jailed for not paying medical debt or any other type of consumer debt. Debt is a civil matter, not criminal. However, ignoring a court summons related to a debt lawsuit can result in legal consequences.
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