How to Fight a Debt Collector for a Medical Bill?

On February 16, 2025 By newsroom Topic: Debt Advice

Dealing with debt collectors for medical bills can be frustrating and stressful, especially if the charges are inaccurate or unfair. Here’s how to fight back effectively:

1. Don’t Pay Immediately

Why: Medical bills often involve errors, and debt collectors may use aggressive tactics to pressure you into paying.
First Step: Gather as much information as possible before deciding your next move.

2. Gather Information

Ask for:
The collection agency’s name, address, and phone number.
The healthcare provider’s details, date of service, and amount owed.
Legitimate collectors should provide this information. Phony collectors may stop contacting you if you ask for specifics.

3. Request Debt Verification

Action: Send a written request for verification within 5 days of first contact.
What It Does:
Forces the collector to send details about the debt and your rights.
Pauses collection efforts until they respond.

4. File a Dispute (If Necessary)

If there’s an error, write a dispute letter within 30 days of receiving verification.
How to Do It:
State why the debt is incorrect (e.g., already paid, wrong person, incorrect amount).
Include evidence like invoices or insurance statements.
Send it via certified mail and keep copies.

5. Check for Errors or Red Flags

Common Issues to Look For:
Mistakes: Billing the wrong patient, duplicate charges, or incorrect amounts.
Insurance Errors: The provider failed to file a claim or made mistakes in submission.
Expired Debt: Check if the debt is time-barred under state laws (typically 2–6 years).

6. Protect Your Credit Score

Ensure the debt is listed as medical debt to benefit from recent credit bureau changes:
Medical bills under $500 won’t appear on credit reports starting 2023.
12-month grace period before unpaid medical debt is reported.
If incorrectly labeled (e.g., as credit card debt), request a correction from the collector or credit bureau.

7. Situations Where You Shouldn’t Pay

The Debt Isn’t Verified: If the collector fails to provide proper verification after your request.
There’s a Clear Error: If you have proof (e.g., zero balance or insurer has paid).
The Debt Is Expired: Some states prohibit collection on old debts past a certain timeframe.
Nonprofit Hospital Assistance: Apply for charity care if the bill comes from a nonprofit hospital and you qualify.

8. When to Delay Payment

Prioritize Other Bills: Focus on rent, utilities, and car payments first.
Debt Under $500: New rules make these debts less urgent as they won’t appear on credit reports.
Waiting on Insurance: If the provider needs to refile a claim, pause payment until resolved.

9. Handling Aggressive Debt Collectors

Know Your Rights: Under the Fair Debt Collection Practices Act, collectors can’t:
Use threats or harassment.
Misrepresent the amount owed.
Call you repeatedly or at odd hours.
Take Action: Report violations to the Consumer Financial Protection Bureau (CFPB) and consider legal action.

10. Get Professional Help If Needed

Use organizations like Dollar For to apply for medical bill forgiveness at nonprofit hospitals.
Consult a lawyer if the collector violates debt collection laws.

Summing it up

Stay Calm and Strategic: Avoid immediate payment to ensure accuracy.
Document Everything: Keep records of all communications and send dispute letters via certified mail.
Use Resources: Apply for financial assistance programs or report violations to protect your rights.

Pro Tip: By standing your ground and using these strategies, you can reduce or even eliminate unfair medical debt claims.