Collections
State regulations
Many states regulate medical-debt collection more tightly than federal law, and several have changed their rules recently. ArkCloud applies no state-specific rules: knowing and applying them is your responsibility. This page is not legal advice.
Written for: Compliance reviewers · Collections managers
What ArkCloud applies
What varies by state
| Field or control | What it means |
|---|---|
| Who is covered | Some states apply debt-collection rules to original creditors, including providers collecting their own accounts. |
| Licensing | Many states license collection agencies; a few also require registration by creditors collecting in certain ways. |
| Contact rules | Some states set narrower calling hours or frequency limits than federal law. |
| Statute of limitations | The period for suing on a medical debt varies by state and debt type, and some states have shortened it specifically for medical debt. |
| Interest and fees | States cap pre- and post-judgment interest and may restrict fees on medical debt. |
| Financial assistance first | Several states require hospitals to screen for financial assistance, or wait a set period, before collection activity or agency placement. |
| Credit reporting and remedies | Several states restrict reporting medical debt to credit bureaus, and limit liens, garnishment or lawsuits for medical debt. |
National credit-reporting practice has also changed: the major bureaus stopped reporting paid medical collections and medical collections under $500. Check the current position before you report anything.
Working across states
- Apply the law of the patient's state of residence as well as your own, and follow the stricter rule.
- Keep a written policy per state you collect in, and review it with counsel at least annually.
- Because ArkCloud does not apply state rules, build them into queue segmentation, letter templates and collector training.