Guide 6: My Unpaid Medical Bill Was Sent to Collection Agency
What happens if I don’t pay my medical bill?
What happens if I don’t pay my medical bill?What should I do if a debt collector contacts me about an unpaid medical bill?
What should I do if a debt collector contacts me about an unpaid medical bill?How does medical debt impact my credit score?
How does medical debt impact my credit score?How can I check my credit report?
How can I check my credit report?How can I improve my credit score?
How can I improve my credit score?Can I file a complaint against a debt collection company?
Can I file a complaint against a debt collection company?
What happens if I don’t pay my medical bill?
If you don’t pay your medical bill, the provider can:
- Begin collection efforts internally with their own billing department,
- Stop providing you with non-emergency medical care,
- Send your account to a debt collector who will try to collect the debt for the medical provider,
- Sell the debt to a debt buyer who will try to collect the debt and keep any money that they recover for itself,
- Sue you for payment, and
- If they win a judgment against you, use wage garnishment to collect amounts owed.
Your medical debt may also be reported to one or more credit bureaus (if this is not prohibited in your state).
Some states have laws that prohibit health care providers from using certain collection practices against patients, such as restrictions on wage garnishment or liens for medical debt.
Learn how to lower your bills in "Guide 4: I Received a Medical Bill I Cannot Afford to Pay."
Learn how to lower your bills in "Guide 4: I Received a Medical Bill I Cannot Afford to Pay."If you have done everything you can to lower your medical bills, you should seek out trustworthy debt counseling to help you sort out your debt issues. Be wary of scams. You can also use Dollar For’s debt forgiveness tool to see if you can qualify to get a medical bill reduced or eliminated entirely by applying for financial assistance.
A note of caution about credit cards
If you charge your medical bills to your credit card, it will be tagged as a credit card debt. As a result, you may lose protections around credit reporting and other collection actions for medical debt. Try to avoid this!
Dive deeper
Learn more about medical debt protection laws in your state.
What should I do if a debt collector contacts me about an unpaid medical bill?
Debt collectors are allowed to contact you to collect on the bills that they believe you owe. Unless a state law prohibits it, they are allowed to sue you to recover the money. If they win the lawsuit, debt collectors can garnish your wages (taking some of your paycheck every pay period until the debt is paid). However, debt collectors must follow certain rules.
See this detailed guide on responding to debt collectors.
What should I ask debt collectors?
Debt collectors cannot ask you to pay a debt that is not yours or that you do not owe. Debt collectors must give you details about exactly what bill is being collected — including the name of the business that says you owe them money and the amount that you owe. If you do not receive this information, request it in writing.
If the information is not correct, send a letter to the debt collector disputing the debt. If you dispute the debt in writing within 30 days of when they first contact you, the debt collector must stop most collection activities until they verify (confirm) the debt. Even if it has been more than 30 days since you received the information from the debt collector, it is important to raise any disputes with the debt collector as soon as possible.
If you are disputing a “surprise medical bill,” the provider or facility must stop pursuing it until the dispute process is resolved.
How can the debt collector contact me?
Debt collectors are limited in how they can contact you. Debt collectors may not contact you before 8 AM or after 9 PM your time. If you tell them that it is inconvenient for you to be contacted at a particular time, they have to stop contacting you at that time. If debt collectors know you are not allowed to receive personal communications at work, they may not contact you at work.
Debt collectors may violate the law if they call you more than seven times within seven days, or within seven days after having a phone conversation with you about the debt. Further, if debt collectors know you are represented by an attorney, they must generally contact you through the attorney.
Debt collectors may not publicly post on social media about your debt. They may contact you privately on social media, but they must identify themselves as debt collectors and give you a way to opt out of receiving further communication from them on that social media platform.
Similarly, debt collectors may also contact you by text message or email, but they must give you a way to opt out of such communications. If the debt collector continues to contact you that way after you have opted out, this may violate the law.
Debt collectors may not harass or threaten you, lie to you about the debt or who they are, or publicly reveal your debt. For instance, debt collectors may not threaten to hurt you, use profanity, or pretend to be from the government.
You can specify how the debt collector may contact you or ask the debt collector in writing to stop contacting you altogether. However, even if you choose not to communicate with debt collectors, they may still take actions to collect the debt like suing you.
Be careful of debt collection scams.
How can I report violations?
If you believe you received an illegal “surprise medical bill” for out-of-network services, contact the No Surprises Help Desk online or call 1-800-985-3059 (8 a.m. to 8 p.m. ET).
If you feel debt collectors did not follow the law, seek help from the Consumer Financial Protection Bureau, the Federal Trade Commission, or your state Attorney General. You may also be able to sue the debt collector. Find a consumer attorney for assistance.
How does medical debt impact my credit score?How does medical debt impact my credit score?
In most states, medical debt can lower your credit score, which can hurt your ability to get loans. Unpaid medical debt stays on your credit report for seven years.
In 2022, a voluntary policy was announced by the three major credit bureaus (Equifax, Experian, and TransUnion) to prevent some medical debt from being listed on your credit report and factored into your credit score:
- Paid medical bills should no longer be included on credit reports.
- Unpaid medical bills less than one year old cannot be listed.
- Medical bills for $500 or less should no longer be included on credit reports.
In addition, some states have prohibitions on credit reporting for medical debt.
If your credit report contains medical debt that should not be included, follow these instructions to dispute any errors.
How can I check my credit report?How can I check my credit report?
Request a free copy of your credit report from annualcreditreport.com or by calling 1-877-322-8228. You are allowed to request a free report from each of the three major credit bureaus (Equifax, Experian, and TransUnion) once per week.
Watch out for scams
Other sites may offer a credit report, but they may ask for a fee, sign you up for an expensive subscription product, show you ads, or could be an outright scam to steal your personal information. You could also lose certain legal rights if you sign up for a subscription product.
Look closely at your report to make sure the information is correct. Check the “Account Information” or “Collections” section of the report.
The following types medical debt should not be listed on your credit report or factored into your credit score:
- Paid medical bills.
- Unpaid medical bills less than one year old.
- Medical bills for $500 or less.
If your credit report contains any these forms of medical debt or includes errors, follow these instructions to file a dispute with the credit bureaus.
You should also notify the debt collector who reported the incorrect information to the credit reporting bureau, and be sure to also dispute the information directly with the credit bureau. See additional information here.
How can I improve my credit score?How can I improve my credit score?
Some non-profits can provide you with credit and debt counseling. Use a reliable source such as the National Foundation for Credit Counseling to find good credit counselors. As always, be wary of scams. Many companies offering credit repair, debt settlement, or debt relief services will cost you a lot of money and may even harm your credit score.
If you feel debt settlement and credit repair companies did not follow the law, seek help from the Consumer Financial Protection Bureau, the Federal Trade Commission, or your state Attorney General. You may also be able to sue the debt settlement company. Find a consumer attorney for assistance.
Can I file a complaint against a debt collection company?Can I file a complaint against a debt collection company?
If you believe debt collectors did not follow the law, seek help from the Consumer Financial Protection Bureau, the Federal Trade Commission, or your state Attorney General. You may also be able to sue the debt collector. Find a consumer attorney for assistance.
See this detailed guide on responding to debt collectors.
