What should I know about debt collection and credit reporting if my medical bill was sent to collections?

When a medical bill is unpaid, a provider may use a third-party debt collector to try to collect the bill. A collection agency, as well as a lawyer or law firm collecting a debt, may be a debt collector under a federal law, the Fair Debt Collection Practices Act (FDCPA). Another federal law, the Fair Credit Reporting Act (FCRA), may also provide protections to you.

Debt Collection. The FDCPA prohibits the use of false, deceptive, or misleading representations in the collection of any debt. This includes the false representation of the character, amount, or legal status of any debt. That prohibition means a debt collector cannot misrepresent that you must pay a debt arising from a charge that exceeds the amount permitted by the No Surprises Act (NSA). The NSA applies to many types of surprise medical bills and became effective on January 1, 2022. For example, if you have insurance, a debt collector who claims you owe a debt arising from charges at out-of-network rates for emergency services could violate the FDCPA if those charges exceed the amount permitted by the NSA.

If you believe that a debt collector is trying to collect a debt that exceeds the amount permitted by the NSA, you should dispute the debt in writing by sending a letter to the collector as soon as possible. This protects your rights under the FDCPA and puts the collector on notice that it may be trying to collect an impermissible amount.

Credit Reporting. Debt collectors may also provide or “furnish” information about unpaid medical debts to consumer reporting companies, also known as credit bureaus or consumer reporting agencies (CRAs). Debt collectors who furnish information and the CRAs to which they furnish that information are subject to the FCRA and its rules. These laws put requirements on CRAs and furnishers on the accuracy of the information in your consumer or credit reports. One requirement is that, when preparing a credit report, CRAs “shall follow reasonable procedures to assure maximum possible accuracy of the information concerning the individual about whom the report relates.” For example, a debt collector or credit reporting agency might violate the FCRA if they report that you owe money for out-of-network emergency medical bills that are higher than what the No Surprises Act allows. They may also break the FCRA if they fail to meet its obligations when you dispute the information.

If you need additional help or resources with your medical debt issues, you can:

• Submit a complaint with the CFPB online or by calling (855) 411-CFPB (2372) if a debt collector contacts you about a surprise medical bill, or if you see surprise medical charges listed as negative items on your credit report.
• Contact the Centers for Medicare & Medicaid Services No Surprises Help Desk at 1-800-985-3059 from 8 am to 8 pm EST, 7 days a week, to submit your question or a complaint. You can also check their No Surprises Act website .
• Speak with a lawyer. You may also qualify for free legal services in your community, if you need additional help and legal advice.
• Contact your legal assistance office if you are a servicemember.
• Submit a complaint to your state attorney general . Your state may have additional protections for consumers with medical debt in addition to federal law.