Medical debt on your credit report: what the rules are now

Medical debt on credit reports is governed more by bureau policy than by federal law. The three bureaus have voluntarily stopped reporting some medical collections. A CFPB rule that would have restricted medical debt reporting more broadly was set aside by a federal court in 2025. Some states have their own rules. Because these rules can change, check each item against the current policy.

What the bureaus have said they will do

As of the last check, the three nationwide bureaus’ own policies are:

• Paid medical collections are not reported.
• Medical collections under $500 are not reported.
• Unpaid medical collections do not appear until a year after the account goes to collections. That gives time to sort out insurance and billing disputes.

These are voluntary policies. They are not set by the Fair Credit Reporting Act and could change without a law or a court ruling.

The federal rule that did not take effect

In January 2025 the CFPB finalized a rule that would have removed most medical debt from credit reports. In July 2025 a federal court set it aside. It is not in effect. A Congressional Research Service summary tracks its status.

State laws

Some states restrict how medical debt may be reported or collected. The rules differ by state. Check your state attorney general’s website or ask a consumer attorney.

What you can dispute

Medical collections can contain the same errors as any other item:

• An amount that does not match your explanation of benefits.
• A bill that insurance should have paid.
• A debt that is not yours or that was billed twice.
• A paid collection still showing a balance.
• An item that falls under the bureau policies above but still appears.

For the last two, point to the policy. Say you paid the collection, or that it is under $500, and ask that it be removed.

Before you pay

If you receive a medical collection notice, ask the provider for an itemized bill, and compare it to your insurance statements. Billing errors are common. Ask the collector to validate the debt in writing. Keep records of any payment arrangements.

Do not rely on one-time fixes

A medical collection that is accurate, over $500, unpaid, and past the one-year wait is within the normal rules, and a dispute generally will not remove it. See what can and cannot be removed.

Sources

• Congressional Research Service: medical debt and credit reports (IF12169)
• CFPB: credit reports and scores
• Cornell LII: 15 U.S.C. 1681c (reporting periods)

Next steps

• What can and cannot be removed from your credit report

  A credit dispute can correct inaccurate, incomplete, or obsolete information. It generally cannot remove accurate negative items. Here is the line.

• How to dispute a credit report error: the complete process

  The full process for disputing a credit report error yourself: get reports, mark errors, gather proof, file with each bureau, track 30 days, read the result.

• How long negative items stay on your credit report

  FCRA section 605 limits: most negative items stay seven years, bankruptcy up to ten. What starts the clock, what the exceptions are, and what bureaus add.