What changed in 2025
On January 7, 2025, the Consumer Financial Protection Bureau finalised a rule prohibiting credit bureaus from including medical debt on consumer credit reports, and barring lenders from using it. On July 11, 2025, the U.S. District Court for the Eastern District of Texas vacated that rule on the grounds that the CFPB exceeded its authority and that the Fair Credit Reporting Act preempted certain state laws. The CFPB under the new administration declined to defend the rule.
Practical effect: medical debt can again appear on credit reports under federal law, and some state-level protections face legal challenges on preemption grounds.
What still works in your favor
In 2022, the three major credit bureaus — Equifax, Experian, and TransUnion — voluntarily agreed to a set of changes that remain in place:
- Paid medical debt is removed from credit reports, regardless of balance.
- New medical debt collections aren't reported for 12 months after being sent to a collector — giving you time to dispute or negotiate.
- Medical collection debts under $500 are not reported at all.
These are industry policies, not law, and could change. State laws in Colorado, New York, Illinois, and elsewhere also restrict medical-debt reporting, though they may face FCRA-preemption challenges following the 2025 ruling.
How to protect your credit while disputing a bill
- Don't ignore the bill. A disputed bill that's never answered may be sent to collections, restarting the 12-month clock and risking a credit hit on debt over $500.
- Send a written dispute within 30 days of the original bill. Keep a copy and proof of delivery (certified mail or portal receipt).
- Ask for the account to be flagged as “in dispute.” Both the provider and any collector must report it as disputed under the FCRA, which generally prevents a derogatory credit listing while it is open.
- If a collector contacts you, send a written debt-validation request within 30 days under the Fair Debt Collection Practices Act. They must pause collection and provide written verification of the debt.
- Pull your credit reports for free at AnnualCreditReport.com and dispute any inaccurate medical-debt entries directly with the bureau under FCRA section 611.
If a medical debt is already on your report
- Verify it. Up to 80% of credit reports have at least one inaccuracy, per a 2021 Consumer Reports study. Even a wrong dollar amount is grounds for removal.
- Pay it down to zero, then dispute. The bureau policy removes paid medical debt — that may take 30–60 days to reflect.
- Negotiate a “pay-for-delete.” Some collectors will agree in writing to remove the entry in exchange for payment. Get it in writing before paying.
The legal landscape changed quickly in 2025 and may change again on appeal. This guide reflects the situation as of early 2026 — verify the current status before relying on a specific protection.