Medical Debt and Your Credit Report: The 2023-2026 Rule Changes

What the credit bureaus changed

In 2022 and 2023, Equifax, Experian, and TransUnion jointly removed paid medical collections from credit reports, extended the reporting delay from 6 months to 12 months, and stopped reporting medical collections under $500. These changes were voluntary but unanimous across the three bureaus, which means they apply to virtually every consumer report.

The practical effect has been dramatic. The CFPB estimated the under-$500 cutoff alone removed roughly 70 percent of medical collection tradelines from consumer reports. If your report still shows small medical collections, they should not be there and a dispute will almost always remove them.

The CFPB final rule

In January 2025, the CFPB finalized a rule under the Fair Credit Reporting Act that bars lenders from using medical debt in credit decisions and stops the bureaus from including it on reports used for lending. As of 2026 the rule is being challenged in court but the bureau policies above remain in effect regardless of how the litigation resolves.

Even if the rule is struck down, paid medical debt and amounts under $500 are still off your reports under the bureau policies. The litigation only affects the broader exclusion of all medical debt, not the existing protections.

What to do right now

Pull your reports from all three bureaus and audit every medical tradeline. Most consumers find at least one error.

• Pull free reports at AnnualCreditReport.com and dispute any medical collection under $500.
• Dispute paid medical collections that still appear. The bureaus must remove them under their own policies.
• For unpaid amounts, ask the hospital for an itemized bill before paying anything.
• Apply for the hospital's financial assistance or charity care program. Nonprofit hospitals are required by federal law to offer one.
• Verify the original creditor and chain of ownership for any third-party collector. Many hospital-debt portfolios change hands multiple times and lose documentation.

What if a collector refuses to remove a wrongly reported account?

File a complaint with the CFPB at consumerfinance.gov/complaint. The bureau forwards complaints to the company and tracks responses publicly. Most collectors respond within 15 days and the threat of a CFPB record is often enough to force removal of a wrongly reported tradeline.

If that fails, you can sue under the Fair Credit Reporting Act for actual damages plus statutory damages of up to $1,000, plus attorney fees. Most consumer rights attorneys take FCRA cases on contingency.