Your medical bill was sent to collections: what to do next
What does it mean when a bill goes to collections?
A provider may sell or assign an unpaid account to a third-party debt collector. From then on, the collector, not the provider, contacts you. The bill may be accurate, or it may contain an error that was never resolved, or it may be an amount insurance should have covered.
Do not assume the balance is correct because a collector sent a notice. Treat the notice as a chance to verify the debt and look at the underlying charges.
How does FDCPA validation work?
The Fair Debt Collection Practices Act requires debt collectors to send a validation notice (15 U.S.C. § 1692g). If you dispute the debt in writing within 30 days of receiving the notice, the collector must stop collection until it verifies the debt.
This applies to third-party debt collectors and generally not to the original provider collecting its own bill. Send your letter by a method that gives you proof of delivery, and keep a copy. Do not rely on a phone call alone to dispute.
What should you do first?
Move in a sensible order, and keep records of each step.
- Note the date you received the first notice from the collector.
- Do not acknowledge the amount or agree to a payment over the phone before you have reviewed the charges.
- Send a written dispute and request validation, as described in the notice.
- Ask the provider for an itemized bill and compare it with your EOB.
- Check whether insurance was billed correctly and whether anything remains pending.
- Keep copies of every letter, envelope and receipt.
What should you check on the underlying bill?
Request the itemized bill and the original dates of service. Look for duplicates, wrong dates, services not received, an out-of-network provider at an in-network facility, or a balance insurance already paid. If you find an error, tell both the collector and the provider in writing.
Statutes of limitations on medical debt vary by state, so check your state's rules or ask the attorney general's office. Credit bureau policies on medical collections have changed over time, so check current rules at consumerfinance.gov.
Where can you complain?
If a collector breaks the rules or ignores your dispute, you can submit a complaint to the CFPB at consumerfinance.gov/complaint, and you may also contact your state attorney general. The CFPB site also explains debt collection rights in plain language.
Medical Bill Dispute Pro can generate a formal dispute letter to the provider from your answers, but it is not a substitute for a debt validation request to the collector. If you face a lawsuit or large balance, consider a healthcare attorney.
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Frequently asked questions
Can I dispute a medical debt after it goes to collections?
Yes. If a third-party collector contacts you, you can dispute the debt in writing within 30 days of receiving the validation notice, and the collector must pause collection until it verifies the debt. You can also dispute the underlying bill with the provider and your insurer at the same time.
Should I call the collector or write to them?
Write. A letter sent by a trackable method creates proof of what you said and when. Phone calls can be useful for questions, but keep notes. Avoid agreeing to payment or admitting the amount is correct until you have reviewed the itemized bill and your EOB.
Does paying the collector fix my credit report?
Not necessarily. Credit bureau policies on medical collections have changed over time, so check current rules at consumerfinance.gov. If you pay, ask for a written agreement describing how the account will be reported, and keep it. A dispute with the collector may also affect how the account is handled.
What if the bill was supposed to be paid by insurance?
Tell the provider and the collector in writing, and attach your EOB. Ask the provider to bill or rebill your insurer and to recall the account from collections while that happens. Contact your insurer too, since a processing error on its side may be the cause.
When do I need an attorney?
If you are sued, face a large balance, or believe the collector is violating the law, consider a healthcare or consumer attorney. A software tool and a dispute letter are meant for ordinary billing disputes. Do not ignore court papers, because deadlines in a lawsuit can be short.
Sources and further reading
Related guides
Not legal or medical advice. Medical Bill Dispute Pro is a software tool that helps you prepare billing dispute letters. It is not a law firm, does not provide legal advice, and cannot guarantee any outcome. Laws and rules change and vary by plan and state; verify important details with the sources linked above, your insurer, or a qualified professional.