A medical bill in collections should not appear on your credit report if it is paid, if its original balance was under $500, or if it is less than a year old.
The three nationwide credit bureaus stopped including paid medical collection debt on July 1, 2022, extended the wait before unpaid medical collections appear from six months to one year, and on April 11, 2023 removed medical collections with an initial reported balance under $500.
- Citation
- Joint announcements of Equifax, Experian and TransUnion, Mar. 18, 2022 and Apr. 11, 2023
- Court or agency
- Equifax, Experian and TransUnion (voluntary industry policy)
- Date
- April 11, 2023
- Law
- FCRA
Summary
In March 2022, Equifax, Experian and TransUnion jointly announced changes they said would remove nearly 70% of medical collection tradelines from credit reports. Paid medical collections came off on July 1, 2022, the waiting period for unpaid ones doubled to a year, and medical collections under $500 were removed in April 2023. These are voluntary industry policies, not a federal rule.
Background
Medical bills are different from most consumer debts. People rarely choose to incur them, and the amount owed often depends on insurance processing that can take months. Even so, unpaid medical bills sent to collection were for years one of the most common negative items on credit reports.
In early 2022, under pressure from regulators and consumer advocates, the three nationwide credit bureaus announced changes on their own.
What changed
The bureaus announced the changes on March 18, 2022, and finished them on April 11, 2023:
- July 1, 2022. Medical collection debt that has been paid is no longer included on credit reports.
- 2022. The bureaus also increased the time before unpaid medical collection debt can appear on a report from six months to one year. The 2022 announcement did not give a separate start date for this change; the 2023 announcement confirmed it was in place.
- April 11, 2023. Medical collection debt with an initial reported balance under $500 was removed from credit reports.
The bureaus said these changes together removed nearly 70% of medical collection tradelines from consumer credit files.
Our take
These changes help, but they are company policies, not law. A federal rule that would have gone further, the CFPB’s January 2025 medical debt rule, was vacated by a federal court in Texas in July 2025. So the bureaus’ voluntary policies remain the main nationwide limit on medical collections in credit reports.
Larger medical debts that are unpaid and more than a year old can still be reported, and creditors can still see them.
What it means if you’re sued in Texas
Medical debts are often sold or placed with collectors and can end up in a lawsuit. If you have been sued over a medical bill, check whether insurance was billed correctly and whether you qualified for financial assistance from a nonprofit hospital. Also confirm that the amount claimed matches the provider’s records.
Separately, review your credit reports. A medical collection that is reported in violation of these policies, or reported inaccurately, can be disputed under the Fair Credit Reporting Act.
If a medical debt is hurting your credit or you have been sued over one, a free case review is available.
Takeaway
Check all three credit reports. A paid medical collection, one under $500, or one less than a year old that still appears can be disputed.
Sources
Primary authority
Secondary sources
This summary and analysis are general information, not legal advice. Later decisions, amendments or agency actions may change the law; check the current status before relying on it.