Medical debt is one of the leading causes of financial hardship in the U.S., often leaving consumers overwhelmed with surprise bills, insurance disputes, or confusing hospital charges. If you’re facing collection attempts over medical bills, it’s important to know that not all of those debts are valid—or legally enforceable. In this blog, we’ll break down how medical debts can be challenged through legal debt resolution, what rights you have as a patient, and how Credo Legal helps clients protect themselves from paying more than they owe.

Why Medical Debt Is So Common

Medical debt often arises from:

• Emergency procedures and out-of-network charges

• Confusing or inaccurate billing

• Delays or denials from insurance providers

• Copays, deductibles, and balance billing surprises

• Administrative errors between hospitals, insurers, and billing companies

Many consumers don’t even realize a bill is outstanding until it’s sent to collections—long after the care was received.

What Makes a Medical Debt Potentially Invalid?

Just because you’ve received a bill doesn’t mean it’s accurate—or enforceable. Here are common reasons a medical debt might be legally disputable:

1. Billing Errors

• Duplicate charges

• Services you never received

• Inflated or incorrect procedure codes

2. Lack of Proper Documentation

• Collection agencies must provide itemized statements and original invoices if requested. If they can’t, the debt may be invalid.

3. No Proof of Assignment

• If your debt was sold to a third-party collector, they must prove they legally own it and have the right to collect.

4. Statute of Limitations

• Like other debts, medical bills are subject to a time limit for collection. This varies by state but is typically 3–6 years.

5. Violation of Consumer Rights

• If a collector uses harassment, deception, or aggressive tactics, it could invalidate the debt under the FDCPA.

Understanding Your Rights Under Federal Law

Several laws protect consumers from abusive medical debt collection:

📘 The Fair Debt Collection Practices Act (FDCPA)

Prevents debt collectors from using harassing or misleading tactics.

📘 The Fair Credit Reporting Act (FCRA)

Gives you the right to dispute inaccurate or outdated medical debts on your credit report.

📘 The No Surprises Act (2022)

Prohibits certain types of surprise billing for out-of-network emergency services and requires more transparency from healthcare providers.

How Medical Debts Impact Your Credit

Historically, medical debt has significantly impacted credit scores—even when the debt was small or unverified. However, recent changes to credit reporting rules have shifted that landscape:

• Medical debt under $500 is no longer reported to credit bureaus.

• Paid medical debt is now removed from credit reports.

• Reporting delay increased: Debts won’t appear on your credit report until one year after being sent to collections, giving you more time to dispute errors.

These changes make it even more important to act quickly if you believe a medical bill is inaccurate or invalid.

Steps to Take If You Receive a Medical Collection Notice

1. Request an Itemized Bill

Review the charges line by line and compare them to your insurance Explanation of Benefits (EOB).

2. Dispute Inaccurate Charges Immediately

Contact the provider or insurance company to correct billing mistakes.

3. Send a Debt Validation Letter to Collectors

Demand proof that the debt is valid, belongs to you, and is collectible under the law.

4. Check Your Credit Reports

Monitor Equifax, Experian, and TransUnion for any medical debts that shouldn’t be listed.

5. Don’t Ignore the Debt—but Don’t Acknowledge It Too Soon

Making a payment or agreeing to a debt before it’s validated may reset the statute of limitations.

Case Study: A $7,200 Hospital Bill Legally Resolved

One Credo Legal client was contacted by a collector over a $7,200 emergency room bill from an out-of-network provider. After reviewing the documentation, we found:

• The collector lacked proper assignment records

• The itemized statement included duplicate charges

• The procedure was partially covered by insurance and misapplied by billing

We filed formal disputes and a debt validation request. The collector was unable to provide full documentation, and the client was released from any obligation. The debt was also removed from their credit report.

How Credo Legal Helps with Medical Debt Resolution

If you’re facing medical bills in collections, we can help you:

• Request and review debt validation documentation

• Dispute billing errors and demand corrections from providers or insurance

• Challenge unlawful or unsubstantiated collection attempts

• Protect your credit by removing inaccurate reporting

• Hold collectors accountable if they violate consumer protection laws

We handle the legal process so you can focus on your health and peace of mind—not on collection calls and threats.

Medical Debt vs. Medical Bankruptcy: Know the Difference

Many people assume bankruptcy is the only solution for overwhelming medical bills—but legal debt resolution offers a less drastic alternative. Challenging the debt before it goes to court may result in:

• Total elimination of invalid charges

• Removal from your credit report

• Avoidance of long-term bankruptcy consequences

Conclusion

Medical bills don’t have to ruin your financial future—especially when they’re based on errors, unfair practices, or unverified claims. Legal debt resolution gives you a powerful way to push back and protect your rights. If you’re being chased for medical debt, Credo Legal is here to help you get clarity, take action, and move forward.