Is There A Statute Of Limitations On Medical Billing?

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A statute of limitations prescribes the time frame creditors are permitted to take legal action against you to recover a debt. When the permitted time expires, creditors may no longer file a claim against your debt or, if it is filed, it may be subject to dismissal by raising the defense that the claim is time-barred.

The amount of time afforded by the statute of limitations will vary based on the type of debt and the laws of the state where the contract was initiated.

What Is The Statute Of Limitations On Medical Debt?

Medical debt is money owed to a hospital or other health care provider. The average time frame permitted by the statute of limitations for medical debt is 7 years from the date of last activity. The time frame is mostly dependent on the laws of the state where the account was initiated.

What To Do If You're Contacted About An Old Debt?

If a debt collector contacts you regarding a debt that has exceeded the time limit of the statute of limitations, avoid making any payments towards this debt. Making a payment would restart the statute of limitations on the debt. Do the following first:

  • Ask for a written notice of the debt: Debt collectors must provide a written notice upon request of the consumer. As required by the Fair Credit Reporting Act (FCRA).
  • Confirm the debt is within the statute of limitations: Confirming the debt is within the statute of limitations as set out by your state, allows you to take the necessary steps to prevent a collector from taking legal action against you if it exceeds the statute of limitations.
  • Have the debt verified: Debt records aren’t free of error, you may request the verification of a debt being collected as provided by the FCRA. If the collection agency cannot verify the debt you may dispute it to have it deleted from your report.
  • Dispute the debt: If the required evidence cannot be produced to confirm the debt is yours, you may dispute it. The dispute letter allows you to include any evidence or supporting documents to verify your claim.

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Why Disputing Inaccurate Debts Is Important

It is important to have inaccurate debts removed from your credit report because of the negative impact it may have on your credit score. If you successfully remove these inaccuracies your credit score will be positively impacted, allowing for potential advantages such as:

  • Better mortgage, personal & auto loan offers.
  • Better interest rates on all loans
  • More likely to be approved and fast.

Disputing these errors may seem like a challenging task. In most cases they are and that is why you should consider consulting expert credit repair companies like Credit Sage, to assist you on a journey to maximizing your credit potential.

Bottom Line

The statute of limitations sets out the amount of time a creditor can take before asking the court to force you to pay for a debt. It is your responsibility to prove the debt has passed the statute of limitations. Consider the assistance of an expert credit repair company like Credit Sage, they will guide you through the process and ensure your credit score reaches its full potential.

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