If you have medical debt on your credit report — or you’re worried about a medical bill that went to collections — the rules that govern what can and can’t appear on your report have changed significantly since 2023. Some of those changes protect you. Others that were promised never took effect. Understanding exactly where things stand in 2026 is essential before you make any decisions about disputing, paying, or ignoring a medical collection.
Last updated: August 2026 | Estimated reading time: 8 minutes
⚠️ Important Update — Rule Struck Down
A previous version of this post described a CFPB rule that would have removed all medical debt from credit reports. That rule was struck down by a federal court in July 2025 and is no longer in effect. This post has been fully updated to reflect the actual rules that apply in 2026. The voluntary protections the credit bureaus put in place in 2022 and 2023 — described below — are still active.
Key Takeaways — Medical Debt on Your Credit Report in 2026
- No federal ban exists. The CFPB rule that would have removed all medical debt from credit reports was vacated by a federal court in July 2025.
- Paid medical collections must still be removed — this is a voluntary bureau policy that remains in force.
- Medical debt under $500 is still excluded from credit reports under voluntary bureau policy.
- Medical debt cannot appear until at least 12 months after it went to collections — giving you time to address it.
- Unpaid medical debt over $500 that is more than 12 months old can still appear on your report and hurt your score.
In This Guide
What Happened to the CFPB Medical Debt Rule?
In January 2025, the Consumer Financial Protection Bureau (CFPB) finalized a rule that would have removed all medical debt from consumer credit reports — regardless of amount, payment status, or age. It would also have barred lenders from considering medical debt when making credit decisions. At the time, the CFPB estimated the rule would have removed approximately $49 billion in medical debt from the credit files of roughly 15 million Americans.
That rule never took effect. In July 2025, a federal judge in Texas — Judge Sean Jordan — struck it down, ruling that the CFPB had exceeded its legal authority under the Fair Credit Reporting Act (FCRA). The court found that the FCRA expressly permits credit reports to carry medical debt information, and that the CFPB could not override that through a regulatory rule.
The Role of the New Administration
In an unusual move, the Trump administration sided with the credit reporting industry in asking the court to strike down the rule — rather than defending the CFPB’s own regulation. After the court vacated the rule, the administration also began pursuing a position that federal law (the FCRA) preempts state laws that restrict medical debt credit reporting. This is still being contested in courts and legislatures as of 2026.
The bottom line: there is no federal ban on medical debt appearing on credit reports as of 2026. What remains are the voluntary policies the credit bureaus adopted in 2022 and 2023 — which are meaningful, but considerably narrower than what the CFPB rule would have provided.
What Still Protects You in 2026
Even without the CFPB rule, three significant voluntary protections from Equifax, Experian, and TransUnion govern what medical debt on your credit report can look like in 2026. These were implemented in 2022 and 2023 and were not part of the rule that was struck down, so they continue to apply nationwide.
1. Paid Medical Collections Are Removed
If you have a medical collection on your credit report and you pay it off, the bureaus are required by their own policies to remove it. This is a significant protection — with most other types of debt, paying a collection does not automatically remove it from your report. Medical debt is different: once paid, it should come off entirely. If you pay a medical collection and it remains on your report, you can dispute it directly with the bureau.
2. Medical Debt Under $500 Is Excluded
The three major bureaus do not include medical collection accounts under $500 on credit reports. If a medical bill went to collections but the amount is less than $500, it should not appear on your Equifax, Experian, or TransUnion report. If you see one that does, dispute it — this violates current bureau policy.
3. Medical Debt Cannot Report Until 12 Months After Collections
Even if a medical debt is over $500 and unpaid, it cannot appear on your credit report until at least 12 months after it was placed in collections. This grace period gives you time to resolve billing disputes with your insurance company, negotiate the debt, or arrange a payment plan before the damage to your credit begins.
What Can Still Hurt Your Credit Score
The protections above are real, but they have clear limits. Here is what can still appear on your credit report and damage your score:
Unpaid Medical Debt Over $500
If you have an unpaid medical collection account that is over $500 and has been in collections for more than 12 months, it can appear on your credit report. A medical collection of $600, $2,000, or $10,000 that goes unaddressed can stay on your report for up to seven years from the date of first delinquency.
Billing Errors Are Common
Medical billing involves multiple parties — the provider, the insurance company, a third-party biller, and a collections agency — and errors are common. A bill that was actually paid by insurance may still end up in collections due to a billing error. A debt that should be under the $500 threshold may be reported at an incorrect amount. These inaccuracies are exactly what the dispute process exists to address.
Old Medical Collections Already on Your Report
Medical collections that appeared before the 2022 and 2023 bureau policy changes may still be there if they were unpaid at that time. Paid ones should have been removed — if they weren’t, that is a disputable error. Unpaid ones over $500 can remain for up to seven years from the date of first delinquency.
How Medical Debt Affects Your Credit Score in 2026
Having medical debt on your credit report doesn’t always hurt your score as much as it used to — major scoring models have reduced the weight they assign to medical collections compared to other types of collections. FICO 9, FICO 10, and VantageScore 4.0 all treat medical collections more leniently. A medical collection that would have severely damaged a score under FICO 8 causes less harm under these newer models.
The catch: FICO 8 is still widely used by many lenders — particularly for credit cards and some mortgage products. If a lender pulls a FICO 8 score, any medical collection over $500 on your report will still have a meaningful negative impact. Understanding how collection tradelines work on your credit report can help you evaluate the actual damage and your options for addressing it.
State Protections That May Apply
As of 2026, approximately 15 states have enacted their own laws restricting or banning the reporting of medical debt to credit bureaus. These include California, Colorado, Illinois, Minnesota, New York, and Washington, among others.
However, there is an important caveat: the federal court decision that struck down the CFPB rule included language suggesting that the FCRA may preempt — meaning override — state laws that restrict medical debt credit reporting. The Trump administration has also taken an explicit position that FCRA preempts state medical debt reporting bans. This is still being actively litigated as of 2026.
Florida does not currently have a state law banning medical debt credit reporting. Florida consumers are protected only by the federal voluntary bureau policies described above — the $500 threshold, the 12-month delay, and removal of paid collections.
How to Dispute Medical Debt on Your Credit Report
If you find a medical collection on your credit report that violates current bureau policies — it is under $500, it appeared before 12 months had passed, or you have already paid it — you have the right under the FCRA to dispute it.
- Pull your free credit reports from all three bureaus at AnnualCreditReport.com. Check all three — a medical debt may appear on one bureau’s report and not the others.
- Identify the collection account: note the creditor name, amount, date reported, and account status.
- Determine which bureau policy it violates: under $500, reported before 12 months, or already paid — any of these is grounds for dispute.
- File a dispute with the bureau(s) reporting the item through their online portals. Explain exactly which policy the item violates and attach supporting documentation — a payment receipt, an Explanation of Benefits (EOB) from insurance, or a billing statement.
- The bureau has 30 days to investigate. If the information cannot be verified as accurate and compliant with current policies, it must be removed.
If a medical collection is accurate, over $500, unpaid, and has been in collections for more than 12 months, a dispute alone is unlikely to remove it. The most effective path is to resolve the underlying debt first, then confirm the removal. Understanding your rights under the FCRA before you file any dispute will help you frame it correctly.
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Frequently Asked Questions
The CFPB Rule and What Applies Now
Is medical debt still on credit reports in 2026?
Yes. Medical debt can still appear on credit reports in 2026. The CFPB rule that would have banned all medical debt from reports was struck down in court in July 2025. What remains are voluntary bureau policies: paid medical collections are removed, debt under $500 is excluded, and medical debt cannot report until 12 months after it went to collections. Unpaid medical debt over $500 that has been in collections for more than a year can still appear and hurt your score.
What happened to the CFPB medical debt rule?
The CFPB finalized a rule in January 2025 that would have removed all medical debt from credit reports. In July 2025, a federal judge in Texas struck it down, ruling that the CFPB exceeded its authority under the Fair Credit Reporting Act. The rule was vacated and never went into effect. The Trump administration had joined the credit industry in opposing the rule, making an appeal unlikely.
Does paid medical debt still come off your credit report?
Yes — this protection still applies. When you pay off a medical collection, the credit bureaus’ voluntary policies require them to remove it from your report. This is different from other collection accounts, where paying only updates the status. If you pay a medical collection and it remains on your report, dispute it with the bureau.
Does medical debt under $500 still not appear on credit reports?
Correct — under the voluntary bureau policies that remain in place, medical collection accounts under $500 should not appear on your credit report. If you see one that does, it is disputable under current bureau policy. File a dispute directly with the bureau reporting it.
Disputing and Managing Medical Debt
Can I dispute a medical collection that appeared before 12 months had passed?
Yes. If a medical collection appeared on your report in less than 12 months from the date it was placed in collections, that violates current bureau policy and is grounds for a dispute. Document when the debt was sent to collections and file the dispute with the bureau, noting specifically that the account was reported before the 12-month period elapsed.
How long can medical debt stay on my credit report?
Under the FCRA, most negative items — including medical collections — can stay on your credit report for up to seven years from the date of first delinquency. The voluntary bureau policies determine whether the debt appears in the first place, but they do not shorten the seven-year clock for debt that is eligible to appear.
Does medical debt affect my credit score the same as other collections?
Not under newer scoring models. FICO 9, FICO 10, and VantageScore 4.0 all treat medical collections more leniently than non-medical collections. However, FICO 8 — still used by many lenders — does not give medical debt preferential treatment. The scoring model your specific lender uses matters significantly.
Sources and Additional Resources
- CFPB — Credit Reports and Scores
- FTC — Fair Credit Reporting Act (FCRA)
- AnnualCreditReport.com — Free Weekly Credit Reports
- Lown Institute — CFPB Medical Debt Rule Blocked in Court
This article is provided for general educational purposes and is not legal, tax, or financial advice. The legal landscape around medical debt and credit reporting is actively evolving — consult a licensed attorney or credit counselor for guidance specific to your situation.
