Jarrett paid his bill at an urgent care clinic. Receipt in hand, he probably thought that was the end of it. But thanks to a billing mistake, the clinic later sent the account to collections.
This isn’t rare. A study by the Consumer Financial Protection Bureau found that nearly 58% of all debt in collections stems from medical bills. Unsurprising, given that much of those debts are disputed or the result of clerical errors.
The problem? Once a debt is in collections, even if it was billed in error, the burden of proof falls on you, not the provider.
How to Dispute a Medical Billing Error
If this happens to you, don’t panic – but do act fast. Here’s what you need to do:
1. Gather your proof:
Find your original payment receipt or a bank statement showing that the charge cleared. This will be your first line of defense.
2. Contact the provider directly:
Call the clinic’s billing department. Explain the situation calmly, provide documentation, and ask them to correct the error and notify the collection agency.
3. Dispute the debt in writing:
If a collector contacts you, dispute the debt immediately—and in writing. The Fair Debt Collection Practices Act (FDCPA) gives you 30 days to request validation of the debt. Include copies (not originals) of your proof of payment.
4. Check your credit report:
Visit AnnualCreditReport.com to see if the erroneous debt is showing on your credit file. If it is, file a dispute with each credit bureau: Experian, Equifax, and TransUnion. Include the same proof you gave the collection agency.
Why You Should Care – Even if You Think It’s Handled
Medical billing errors don’t just cost you stress – they can impact your financial future. A false debt in collections can:
- Lower your credit score
- Increase loan or credit card interest rates
- Affect job prospects (some employers check credit)
- Take months—or years—to resolve if ignored
And the worst part? You might never know it's there unless you're actively monitoring your credit.
What You Can Do to Protect Yourself
Here are a few proactive steps to avoid the whole mess altogether:
- Always request and keep itemized receipts from any medical visit
- Monitor your credit reports at least once a year (it’s free!)
- Follow up on any “zero balance” statements to confirm the account is truly closed
- Ask your provider for written confirmation if they say they’ve fixed an error
Conclusion:
Jarrett’s story is a cautionary tale about just how flawed the medical billing system can be. Even when you do everything right, errors can slip through the cracks… and the consequences can follow you for years.
So if you’ve paid your bill but find yourself in collections, don’t ignore it. Take control, document everything, and dispute the error at every level. You don’t owe what you don’t owe, and a billing mistake should not define your financial future.
