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Medical Debt Collection Rule Favor Collectors

Posted by Ryan D. Peterson | Jan 04, 2021 | 0 Comments

File Folder for Medical Bills marked past due in red ink - medical debt collection

Medical debts accounted for more than half of all collection items on credit reports.

Over 71 million U.S. adults currently have medical debt in collection, and medical debt still leads the pack as the top reason collection agents contact consumers, according to the National Consumer Law Center (NCLC). While the ACA includes protections that aim to curb aggressive billing by nonprofit hospitals, it hasn't been enough to stem the tide of medical debt – nor to address gaps in state and federal law that fail to protect consumers once the debt has been acquired, transferred to collection agencies, or sold to debt buyers.

Medical Debt Collection is the Top Reason for contact with debt Collectors

There is a proposed rule from the Consumer Financial Protection Bureau that tips too far in favor of collection agents, allowing them – among other things – to contact consumers up to seven times per week, per debt; send important legal notices by email or text; resurrect “zombie debts” that have passed the statute of limitations. The rule applies broadly to all types of debt collection, but would have a major impact on health care consumers. If anyone needs help navigating provider billing these days, it's patients – not collection agents. Give us a call if you are looking for a debt collection defense attorney.

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Source: Article courtesy of

About the Author

Ryan D. Peterson

Attorney Ryan D. Peterson Ryan D. Peterson is a former debt collection attorney turned consumer rights expert and advocate. After graduating from William Mitchell law school in 2008, Ryan opened his own criminal defense firm. In 2010 Ryan joined a Minneapolis-based debt collection firm. Ther...


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