A medical bill collection letter may be from a debt collector trying to collect an unpaid bill for a provider. If you believe the collector is seeking a debt that exceeds the amount permitted by the No Surprises Act, the Consumer Financial Protection Bureau (CFPB) recommends disputing it in writing with the collector as soon as possible.
What to have in front of you
- The collection letter
- The medical bill
- Your credit report, if it lists the medical debt
What the letter may mean
When a medical bill is unpaid, a provider may use a third-party debt collector to try to collect it. A collection agency may be a debt collector under the Fair Debt Collection Practices Act, or FDCPA. A lawyer or law firm collecting a debt may also be a debt collector under that law.
The CFPB says the FDCPA prohibits false, deceptive, or misleading representations in the collection of a debt. This includes false representations about the character, amount, or legal status of a debt.
The No Surprises Act applies to many types of surprise medical bills. It became effective on January 1, 2022. The CFPB says a collector cannot misrepresent that you must pay a debt arising from a charge that exceeds the amount permitted by that act.
For example, if you have insurance, a collector might claim you owe a debt arising from out-of-network charges for emergency services. If those charges exceed the amount permitted by the No Surprises Act, the collector could violate the FDCPA.
A lawyer can advise you about your situation. The CFPB says you may also qualify for free legal services in your community.
Your option to dispute the debt
If you believe a collector is trying to collect a debt that exceeds the amount permitted by the No Surprises Act, the CFPB recommends disputing the debt in writing by sending a letter to the collector as soon as possible.
The CFPB says a written dispute protects your rights under the FDCPA. It also puts the collector on notice that it may be trying to collect an impermissible amount.
The CFPB also lists speaking with a lawyer as an option if you need additional help or legal advice. Free legal services may be available in your community if you qualify.
If the bill appears on a credit report
Debt collectors may provide information about unpaid medical debts to consumer reporting companies. These companies are also known as credit bureaus or consumer reporting agencies.
The Fair Credit Reporting Act, or FCRA, and its rules apply to debt collectors that provide this information and to the consumer reporting agencies that receive it. The CFPB says these laws include requirements about the accuracy of information in consumer or credit reports.
When preparing a credit report, consumer reporting agencies must follow reasonable procedures to assure the maximum possible accuracy of information about the person the report concerns.
The CFPB gives an example involving out-of-network emergency medical bills. A debt collector or credit reporting agency might violate the FCRA if it reports that you owe money for bills that are higher than the No Surprises Act allows. A collector or agency may also break the FCRA if it fails to meet its obligations when you dispute the information.
If you see surprise medical charges listed as negative items on your credit report, the CFPB says you can submit a complaint to the agency. The same option is available if a debt collector contacts you about a surprise medical bill.
Where to ask for help
The CFPB lists several places to bring a question or concern about medical debt:
- The CFPB: Submit a complaint online or call (855) 411-CFPB (2372) if a collector contacts you about a surprise medical bill or you see surprise medical charges as negative items on your credit report.
- The Centers for Medicare & Medicaid Services No Surprises Help Desk: Submit a question or complaint by calling 1-800-985-3059. The help desk is available from 8 am to 8 pm EST, 7 days a week. You can also check the agency’s No Surprises Act website.
- A lawyer: Speak with a lawyer if you need additional help or legal advice. You may qualify for free legal services in your community.
- Your legal assistance office: The CFPB lists this option if you are a servicemember.
- Your state attorney general: You can submit a complaint. Your state may have additional protections for consumers with medical debt.
Where this comes from
Consumer Financial Protection Bureau: What should I know about debt collection and credit reporting if my medical bill was sent to collections?