It is not illegal to post medical debts on your credit report, as long as the information is accurate. More specifically, your credit report can list a medical debt and the amount owed, but the lender cannot disclose your actual bill with confidential information included.
In addition, new rules regarding medical debt on credit reports were enacted in 2022 to help mitigate credit score damage caused by healthcare bills.
New Rules for Medical Debt on Credit Reports
Medical debt can only be listed on your credit report if the balance is $500 or more.
The debt must also be outstanding for at least a year after the date of service before it can be added to your credit report.
If you pay off a medical debt in collections, the account will be removed from your credit report altogether.
Options Are Available If You Need Help
If you are struggling to pay off medical debt, you may be able to work with your healthcare provider or a credit counselor. You could potentially negotiate a payment plan, settle for a lower amount, or consolidate your debts with a personal loan or a balance transfer credit card.
On the other hand, if the medical debt listed on your credit report is a mistake or the entry contains errors, you can file a dispute with the three major credit bureaus. The bureaus typically respond to claims within 30 to 45 days.
Regularly checking your credit report can help you ensure that any medical debts listed are accurate and up-to-date. You can check your credit report and get personalized credit-improvement tips for free here at WalletHub.