Texas Law on Unpaid Medical Bills: Your Rights and Options

If you're struggling to pay your medical bills in Texas, you're not alone. Under Texas law, medical providers can't just send your debt to collections without taking certain steps first.

You have the right to request a billing error review if you believe there's been a mistake on your medical bill. This can help you identify any errors or overcharges that may be reducing the amount you owe.

In Texas, medical providers are required to send you a written notice before sending your debt to collections. This notice must include information about the amount owed, the name and address of the creditor, and a statement that the debt is past due.

If you receive a collections notice, don't panic. You have options to dispute the debt or negotiate a payment plan.

In Texas, the statute of limitations on debt is four years, according to Section 16.004 of the Texas Civil Practice and Remedies Code. This means that creditors can only sue you for unpaid medical bills within that timeframe.

Debt buyers are required to provide written notice to consumers if the limitations period has expired, as stated in Section 392.307 of the Texas Finance Code. Introduced in 2019, this law aims to protect consumers from debt collectors.

New federal regulations also prevent debt collectors from suing or threatening to sue over time-barred debts. Title 12, Section 1006.26 of the Code of Federal Regulations outlines these rules.

Here are some key points to keep in mind:

The statute of limitations on unpaid medical bills in Texas is 4 years. This means that creditors have a limited time to take legal action to collect the debt.

If you're unable to pay your medical bills, it's essential to know that every communication or payment you make to the creditor can restart the clock on the statute of limitations. This means that if you respond to a letter or make a payment, the 4-year clock starts anew.

In Texas, time-barred debt refers to debt that is more than 4 years old. Once the time period is up, creditors can no longer file a lawsuit to collect the debt. However, you still owe the debt, and it's not considered "forgiven."

Time-barred debt is a real thing, and it's not something to be taken lightly. Texas law gives someone 4 years to bring a lawsuit for unpaid debt, which is the statute of limitations.

This time period is crucial because once it's up, a person is prohibited from filing suit to recover the debt. You still owe time-barred debts, but creditors and debt buyers lose their most powerful way of collecting – a lawsuit.

The statute of limitations is a critical concept to understand when dealing with medical debt. In most states, the statute of limitations for medical debt ranges from 3 to 10 years.

For instance, in Texas, the statute of limitations for medical debt is 4 years. If you're unable to pay your medical bills, it's essential to know that the clock starts from the date you missed the last payment. If you make a payment or acknowledge the debt to the creditor, the clock restarts in most states.

Here's a breakdown of the statute of limitations for medical debt in various states:

Keep in mind that even if the statute of limitations has expired, you still owe the debt. However, creditors and debt buyers can no longer sue you to recover the debt, making it time-barred.

If a debt collection agency or law firm in Texas is violating the Fair Debt Collection Practices Act (FDCPA), you have the right to report them to the Federal Trade Commission (FTC) online platform.

You can also submit a complaint to the Consumer Financial Protection Bureau (CFPB) and post a review on the collection agency's Better Business Bureau (BBB) profile. These platforms will follow up on the complaint and take legal action against the agency.

Some examples of FDCPA violations include calling you before 8 a.m. or after 9 p.m., calling your family members or friends to discuss a debt, and lying about confiscating your driver's license or other documents if you don't pay.

Here are some examples of FDCPA violations:

You have rights under The Fair Debt Collection and Practices Act (FDCPA) that protect you against unlawful medical debt collection practices. The FDCPA governs the actions collection agencies and law firms can take in attempting to collect a debt.

Some debt collectors may break these laws in their attempt to collect the debt. Here are some examples of ways debt collectors violate the FDCPA:

If a debt collection agency or law firm has violated these laws, you can report them to The Fair Trade Commission (FTC) online platform, submit a complaint in the Consumer Financial Protection Bureau (CFPB), and post a review on the collection agency's Better Business Bureau (BBB) profile. These platforms will follow up on the complaint and take legal action against the agency.

Creditors view medical debt differently than other types of debt. This means that medical debt may not have the same impact on your credit score as a mortgage or car loan.

In the past, medical debts were viewed as equally important, but Credit Bureaus have since taken a different stance. They now recognize that medical debt is often incurred out of necessity, rather than choice.

As a result, medical debt carries less weight in credit reports. This shift in perspective has led to changes in how medical debt is reported to credit bureaus.

For example, Equifax, Experian, and TransUnion announced changes in reporting medical debt on March 22, 2022. These changes took effect in July 2022 and include: