Medical Debt in Collections: Your Rights and Options

As of 2023, paid medical collections are removed from credit reports immediately. Unpaid medical debt under $500 is no longer reported. New medical debt cannot appear on credit reports until after 12 months, giving you time to resolve bills.

Under the Fair Debt Collection Practices Act, you have 30 days from first contact to request debt validation. Collectors must provide written verification including the original creditor, amount owed, and proof you owe it. Always request validation in writing.

Collections agencies typically buy debt for 5-25 cents on the dollar. This means they can accept significantly less than the full amount and still profit. Negotiate for a lower payoff amount and get written agreement before paying.

While less common now due to credit reporting changes, you can request that the collector delete the account from your credit report in exchange for payment. Get any deletion agreement in writing before making payment.

Each state has a statute of limitations on debt collection (typically 3-6 years). After this period, collectors cannot sue you for the debt. Be careful: making a payment or acknowledging the debt can restart the clock in some states.

Consider consulting a consumer law attorney if collectors violate your rights, sue you for the debt, the amount is large, or you're being harassed. Many offer free consultations and work on contingency for FDCPA violations.