The Fair Credit Reporting Act (FCRA) is a federal law that protects consumers from credit report errors. Over the past several years, there have been major regulatory developments regarding the FCRA and medical debt. As of 2026, medical debt is reportable on consumer credit reports in many (but not all) U.S. states. However, the FCRA allows consumers to take legal action against data furnishers (medical providers, debt collectors, etc) and credit reporting agencies for errors related to medical debt. At The Kim Law Firm, LLC, we are leaders in FCRA cases nationwide. Our credit report error lawyer can answer your questions about FCRA.

Medical Debt is a Serious Problem in the United States

Unfortunately, medical debt remains a serious problem for many. It is a major consumer finance issue in the United States. The Kaiser Family Foundation (KFF) estimated in 2024 that Americans owe at least $220 billion in medical debt. Its analysis also found that about 14 million people (around 6% of adults) owe more than $1,000 in medical debt. Further, the KKF review found that approximately 3 million people owe more than $10,000 in medical debt. Beyond that, a separate KFF survey data published in 2026 found that 28% of adults said they or a family member in their household had problems paying for health care in the prior 12 months. Medical debt matters in the FCRA context because billing errors, insurance delays, duplicate charges, and disputed balances can all migrate into collections and then onto a consumer report. That can impact finances in a wide range of different ways, including credit access. 

CFPB Previously Moved to Stop the Reporting of Medical Debt (Credit Reports)

You have heard that a regulation was put into place to prevent medical debt from being reported on consumer credit reports. That is true in that it did happen. However, that regulation did not take effect, and it is not currently in effect. While the Consumer Financial Protection Bureau (CFPB) moved aggressively to shut down medical debt reporting at the federal level, the policy changed. 

• On January 7, 2025, the CFPB finalized a rule amending Regulation V, the FCRA’s implementing regulation, to prohibit consumer reporting agencies from including medical debt information on credit reports used by creditors and to prohibit creditors from considering that information in eligibility determinations. The rule reflected the Bureau’s broader position that medical debt is a poor predictor of repayment risk and that the reporting system often captures debt distorted by insurance disputes, billing complexity, and other non-credit factors. 

Had the rule remained in force, it would have represented the most significant federal restriction on medical debt reporting to date. However, it was blocked by the courts and abandoned by the Trump Administration. That is not to say that there are no reporting protections related to medical debt. Prior to 2025, the three major credit reporting agencies had already moved to remove: 

• Medical debt less than $500; 
• Medical debt less than one year hold; and
• Medical debt in collections that was paid off. 

Rule Did Not Take Effect (Medical Debt is Reportable in 2026 Under Certain Conditions)

It is important to emphasize that the federal rule is not in effect. That is the key thing to know about credit reports and medical debt in 2026. At the federal level, it can be included on credit reports if it is in excess of $500, more than 365 days delinquent, and not paid off. Indeed, the CFPB’s own rule page now states that, on July 11, 2025, the U.S. District Court for the Eastern District of Texas vacated the medical debt rule in Cornerstone Credit Union League v. CFPB after the Bureau and the plaintiffs jointly requested that result. The CFPB’s 2025 semiannual report states that the vacatur rested on the position that the rule exceeded the Bureau’s statutory authority. As a result, no nationwide federal ban currently prevents the reporting of medical debt under the FCRA and Regulation V. In practical terms, that means medical debt remains reportable in 2026 unless some other source of law blocks it, such as a state statute or the voluntary reporting limits already adopted by Equifax, Experian, and TransUnion. 

Some States Have Passed Laws Regarding Credit Reports and Medical Debt

State law has a big impact on debt collection, including credit reports. While the federal FCRA sets the baseline for credit reports, there are state regulations that go beyond the FCRA protections in some jurisdictions. That is a big deal when it comes to medical debt because several major states have put their own laws in place. As of the Spring of 2026, at least 15 states have laws that ban or sharply restrict the reporting of medical debt on consumer credit reports. That list includes: 

• California; 
• Colorado; 
• Connecticut; 
• Delaware;
• Illinois;
• Maine; 
• Maryland;
• Minnesota; 
• New Jersey; 
• New York; 
• Oregon; 
• Rhode Island; 
• Vermont; 
• Virginia; and 
• Washington.

That said, it is important to clarify that these state laws do not all work exactly the same way. Quite the contrary, some statutes operate at the furnisher level and prohibit medical providers, debt collectors, or other creditors from furnishing medical debt information to a consumer reporting agency in the first place. Other statutes operate at the credit-reporting-agency level by prohibiting a CRA from including medical debt in a consumer report if the agency knows or should know the item is medical debt. Some states use both approaches at once. 

The Bottom Line: State law often matters for the reportability of medical debt. In many states, medical debt may still exist and may still be collected, but it generally cannot lawfully appear on a standard consumer credit report in the same way it can in states without those protections. 

The FCRA Protects Consumers From Inaccurate Medical Debt Reporting 

As noted, federal regulations preventing the reporting of medical debt on consumer credit reports did not take effect. As such, that debt can be reported in 2026 if it meets the $500 and one-year delinquency threshold and there is no state law restricting it. Still, the FCRA absolutely protects consumers against having inaccurate information related to medical debt included on their credit report. The Fair Credit Reporting Act imposes parallel duties on consumer reporting agencies and data furnishers that apply with full force to medical debt. Here is an overview: 

• Credit Reporting Agencies (Equifax, Experian, and TransUnion): Under 15 U.S.C. § 1681e(b), a consumer reporting agency must follow reasonable procedures to assure maximum possible accuracy of the information it reports. The duty covers identity matching, account status, balance, dates of delinquency, and the characterization of an account as “medical.” A report that misstates any of those fields can violate the statute if the procedures were not reasonable in light of the risk of error.
• Data Furnishers (Hospitals, Medical Providers, and Debt Collectors): Under 15 U.S.C. § 1681s-2, hospitals, other medical providers, and third-party debt collectors are prohibited from furnishing information known to be inaccurate. Beyond that, the FCRA imposes a mandatory investigation duty after a furnisher receives notice of a dispute from a consumer reporting agency. The furnisher must conduct a reasonable investigation, review all relevant information provided by the agency, report results, and correct or delete information that cannot be verified.

Medical accounts present recurring accuracy problems. Billing often depends on insurer adjudication, coding, and coordination of benefits. Accounts may be placed with third-party collectors before coverage issues are resolved. That dynamic creates disputes over whether a balance is owed at all, whether the amount is correct, and when delinquency began. The FCRA does not treat medical debt differently for accuracy purposes. If a medical account is reported, it must be accurate, verifiable, and supported by reasonable procedures.

Know Your Rights: Medical Debt Errors and the FCRA

As a consumer with issues related to an alleged medical debt, you have important rights under the FCRA. It is crucial that you know the protections available under the law so that you can best protect your financial interests. Here is an overview of key rights: 

• You Have the Right to Dispute Inaccurate Information: First and foremost, you can and should dispute inaccurate information related to medical debt. The FCRA is clear:  A consumer may dispute any item in a credit file with a consumer reporting agency. The agency must conduct a reasonable reinvestigation, usually within 30 days, and must delete or correct information that cannot be verified.
• You Have the Right to a Reasonable Reinvestigation by Furnishers: Once a dispute is forwarded by a consumer reporting agency, the furnisher (medical provider, debt collector, etc.) must investigate, review all relevant information, and report accurate results. A superficial or cursory investigation does not satisfy the statute.
• You Have the Right to the Correction or Deletion of Unverifiable Accounts: What cannot be demonstrated to be accurate with reliable documentation cannot lawfully remain on your credit report. If a medical debt cannot be verified through the reinvestigation process, the agency must delete it. 
• You Have the Right to Dispute with Multiple Agencies: A consumer may dispute with each nationwide consumer reporting agency. If you have problems with inaccurate medical debt, you may see it arise on all three of your credit reports. Each agency must conduct its own reinvestigation and cannot rely blindly on another’s result.
• You Have the Right to Sue for Noncompliance: Another key point to know is that you may bring a civil action for negligent or willful violations. Willful violations can support statutory damages and, in appropriate cases, punitive damages. If you are considering taking civil legal action under the FCRA, an experienced credit report error lawyer can help. 

An Overview of Compensation You Can Seek for an FCRA Error Over Alleged Medical Debt

The FCRA provides defined remedies for consumers harmed by inaccurate medical debt reporting. For negligent noncompliance, the law allows recovery of actual damages, along with costs and reasonable attorney’s fees. Actual damages can include out-of-pocket losses, higher borrowing costs, denied credit, and proven emotional distress tied to the reporting error. For willful noncompliance, the FCRA also authorizes statutory damages of $100 to $1,000 per violation, punitive damages in appropriate cases, and attorneys’ fees and costs. 

Additional Remedy: A consumer affected by credit report errors related to medical debt may also seek injunctive-type relief indirectly through correction or deletion following a successful dispute or settlement, although private plaintiffs generally do not obtain broad injunctions under the FCRA. In cases involving improper reinvestigations, courts evaluate whether the consumer reporting agency or furnisher followed reasonable procedures and conducted a reasonable investigation. 

Why Consumers Trust Credit Report Error Attorney Richard H. Kim

Dealing with medical debt can be extremely stressful, especially if there is debt showing up on your credit report that you do not actually owe or that is otherwise inaccurate. You have the right to take action to challenge credit report errors. Richard H. Kim is an FCRA lawyer who helps consumers nationwide take action to get justice and financial compensation. Attorney Kim is well-versed in the FCRA, and he is more than ready to protect your rights when it matters most. If you are dealing with credit report issues related to medical debt, please do not hesitate to contact our FCRA attorney for a strictly confidential, no obligation initial consultation. We put consumers first. 

Contact Our Credit Report Error Attorney Today

At The Kim Law Firm, LLC, our credit report lawyer provides solutions-focused guidance and support to consumers. If you have any questions about a credit report error related to medical debt, we are here to protect your rights and your interests. Call us now or contact us online to set up a completely confidential, no obligation initial case evaluation. We provide credit report error representation to consumers nationwide.