Reporting medical debt
Consumer guidance and frequently asked questions
Issued February 2026
This guidance provides basic information about the Fair Medical Debt Reporting Act (FMDRA).
The FMDR amended New York state laws that address how medical debt is reported to consumer reporting agencies. The FMDRA became effective on December 13, 2023.
Under the FMDRA:
- Consumer reporting agencies like Experian, Equifax, or TransUnion may not place or maintain any information about a medical debt on your credit report, no matter when the medical debt occurred. Note: Credit card companies can still report medical debt to a consumer-reporting agency. This means that, if you charge a medical debt to your credit card, that debt could still appear on your credit report.
- Hospitals, health care professionals (such as New York-licensed doctors, dentists, nurses, pharmacists, mental health providers, physical therapists, physician assistants, and chiropractors), and ambulance service providers may not give consumer reporting agencies any information about your medical debt.
- Hospitals, health care professionals, and ambulance service providers must include provisions in their contracts with debt collectors prohibiting them from reporting your debt to a consumer reporting agency.
Note that some provisions of the FMDRA may be interpreted in different ways. New York courts have not issued any decisions that clarify how to interpret those provisions.
Frequently asked questions
What is medical debt under the FMDRA?
Medical debt includes bills for health care services, products, or devices provided to a consumer by a hospital, health care professional, or ambulance service.
How are bills charged to “regular” credit cards treated under the FMDRA?
By “regular” credit card, we mean an all-purpose card that is not specialized for medical products and services. If you use this kind of card to pay for health care services, products, or devices, the credit card company is allowed to report that debt to consumer reporting agencies. The consumer reporting agencies can list that debt on your credit report. The debt is no longer considered medical debt under the FMDRA, even if it is from a hospital, health care professional, or ambulance service.
How are bills charged to “medical” credit cards treated under the FMDRA?
Unlike regular all-purpose credit cards, medical credit cards are offered specifically for the payment of medical services, products, or devices.
If you charge bills for health care services, products, or devices to this type of credit card, those bills are considered medical debt under the FMDRA. Consumer reporting agencies are prohibited from reporting that debt.
But be careful: If a card can be used for non-health care items (even if it is called a health or wellness card), charges for non-medical expenses do not qualify as medical debt under FMDRA. For example, you might use such a card to pay for veterinary services or a non-medical product at a pharmacy. Credit card companies might not consider any of the debt placed on those credit cards to be medical debt. Credit card companies could then report all of the charges, including medical ones, to credit reporting agencies.
If you are not sure if the credit card company of a health or wellness card reports medical debt, inquire before applying for the credit card.
What can I do if my medical debt was incorrectly reported to a consumer reporting agency?
Dispute any incorrectly reported medical debt with the consumer reporting agency. Incorrectly reported debt is considered void under the FMDRA. The reporting agency should remove it from your credit report.
Can I be pursued for a medical debt?
Yes, you can. The FMDRA does not generally prevent hospitals, health care professionals, and ambulance service providers — or their debt collectors — from coming after you for a medical debt. However, if the medical debt was reported to a consumer reporting agency, then you can argue that the medical debt was improperly reported.
Can someone garnish my wages, place a bank levy (remove money from my account) or put a lien (legal claim) on my home for medical debt?
Debt collectors can sue you to recover their money for medical debt, as well as other types of debt. If the judge or court decides in their favor, they can garnish your wages, levy or remove money from your bank account, or place a lien on your home. This means credit card companies can, with a court judgment, garnish your wages or place a lien on your home.
By contrast, if you owe the medical debt to a hospital or health care professional, they cannot garnish your wages or put a lien on your primary residence. Examples of health care professionals that fall into this category: doctors, physician’s assistants, dentists, chiropractors, physical and occupational therapists, and certain licensed mental health providers.
In addition, some other facilities licensed by the New York State Department of Health cannot garnish your wages or put a lien on your primary home.
These include: freestanding health clinics (also known as diagnostic and treatment centers), rehabilitation centers, ambulatory surgery centers, certain dental clinics, and nursing homes. These health care professionals and medical providers can still seek to sue you and obtain a bank levy to remove money from your bank account.
File a complaint about incorrect reporting of your medical debt
Notify OAG if you believe a consumer reporting agency is unlawfully reporting medical debt on your credit report, or if you think a hospital, health care provider, or ambulance service is unlawfully providing your medical debt data to a consumer reporting agency: