What Happens If I Don’t Pay a Dental Bill?

An unpaid dental bill can initiate a series of escalating actions, potentially leading to financial difficulties and stress. This article outlines the common steps taken when a dental bill goes overdue, from initial office communications to more severe consequences like legal action.

Initial Actions by the Dental Office

When a dental bill becomes overdue, the dental practice typically begins with internal collection efforts. The initial step involves sending reminder notices, such as updated statements or past-due letters. These communications typically start within 30 days of the original due date.

Dental office staff, such as a financial coordinator or office manager, often make direct phone calls to the patient. These calls aim to understand the reason for non-payment and to encourage resolution. The objective is to secure payment or arrange a payment plan, preventing further escalation.

Some dental practices may send a series of escalating letters, maintaining a professional yet increasingly insistent tone as the debt ages. If initial attempts to collect payment are unsuccessful, the office might send a second notice after 60 days, followed by a final notice around 90 days. The goal is to resolve the matter internally before external measures, which can be costly for the practice.

Third-Party Debt Collection

If a dental office’s internal collection efforts do not result in payment, the account may be assigned or sold to a third-party debt collection agency. This typically occurs after a bill is significantly overdue, often 90 to 120 days. Once with a collection agency, they begin attempts to recover the outstanding amount.

Collection agencies communicate through various methods, including letters and phone calls, to demand payment. These agencies are governed by federal laws, such as the Fair Debt Collection Practices Act (FDCPA), which prohibits abusive, unfair, or deceptive practices. For example, collectors cannot contact individuals before 8:00 a.m. or after 9:00 p.m. local time, or at work if indicated.

Individuals have specific rights when dealing with debt collectors under the FDCPA. One right is to request debt validation within 30 days of initial communication from the agency. This requires the collector to provide proof that the debt is owed and accurate, including the original creditor’s name and amount. If requested, the agency must cease collection efforts until the debt is validated.

Credit Reporting Consequences

An unpaid dental bill, once with a collection agency, can significantly impact a credit report and score. Medical debts, including dental bills, do not appear on a credit report until sent to a collection agency. A collection agency typically waits one year before reporting unpaid medical debt to major credit bureaus (Experian, Equifax, TransUnion).

Negative information that may appear on a credit report includes collection accounts. As of April 2023, unpaid medical collections under $500 are generally removed from credit reports. For balances of $500 or higher, the collection account can remain on a credit report for up to seven years from the first missed payment.

A collection account can lower credit scores, as payment history is a significant factor. A lower credit score can affect future financial opportunities, making it challenging to obtain loans, credit cards, housing, or insurance at favorable rates. While paying a collection account may lessen its impact, it typically remains on the credit report for seven years, although some newer scoring models may ignore paid collections.

Potential Legal Action

A dental office or collection agency may pursue legal action to recover an unpaid dental debt. This step is usually reserved for larger debts, as the legal process involves costs for the creditor. Healthcare providers can sue for unpaid medical bills, like other creditors.

A debt collection lawsuit begins with receiving a summons and complaint, formally notifying the individual of the lawsuit. Ignoring the summons can lead to a default judgment against the individual, meaning the court rules in favor of the creditor without a defense. The court process may occur in a small claims court, depending on the debt amount.

A judgment is a court order confirming the debt is owed and gives the creditor legal authority to collect. Consequences of a judgment can include wage garnishment, where a portion of earnings is withheld and sent to the creditor. Another outcome is a bank levy, allowing the creditor to take funds directly from a bank account. A property lien might also be placed on assets, such as real estate, preventing its sale until the debt is satisfied.

Addressing Unpaid Dental Bills

When faced with an unpaid dental bill, communication with the original provider or collection agency is an important initial step. It is possible to discuss the situation and explore resolution avenues. This might involve inquiring about payment plans, which many healthcare providers offer, allowing the balance to be paid in smaller installments. These plans are sometimes interest-free.

Another option is to negotiate a settlement amount, particularly if the bill has gone to collections. Creditors or collection agencies may accept a lower lump-sum payment than the original balance to resolve the debt. Understanding what can be afforded for a settlement is helpful.

If there are concerns about bill accuracy, disputing it is a relevant action. Many medical bills contain errors, such as duplicate charges or unreceived services. Requesting an itemized bill can help identify discrepancies. If the bill is with a collection agency, individuals have the right to request debt validation, which can help confirm its legitimacy and accuracy. Understanding the bill’s current status and which entity holds the debt helps direct communications appropriately.