Medical debt laws in Illinois
In Illinois, the statute of limitations on medical debt is 5 years (735 ILCS 5/13-205; 735 ILCS 5/13-206). Medical bills are treated as unwritten/implied contracts or open accounts under 735 ILCS 5/13-205 (5 years). Under Portfolio Acquisitions, LLC v. Feltman, 231 Ill. 2d 325 (2008), the 10-year written-contract period (13-206) applies only where the writing itself contains all essential terms including the amount owed - which hospital admission forms and bills ordinarily do not - so credit cards and medical accounts get 5 years. A collector could argue 10 years if a complete signed payment contract exists; that ambiguity is rare in practice. That clock decides whether a collector can win a lawsuit against you — which changes what you should do next, so check the dates on the bill before you do anything else.
| Written contracts | 10 years |
| Oral agreements | 5 years |
| Open accounts (credit cards) | 5 years |
| Medical debt | 5 years |
What the time limit actually means
The statute of limitations does not erase a debt — it limits how long a collector can successfully sue over it. A time-barred debt can still be requested, reported (within credit-reporting time limits), and settled. But if a collector sues after the period has run and you raise the statute of limitations as a defense, the case should be dismissed. The defense is not automatic: you must respond to the lawsuit to use it.
Careful: Yes for written debts - 735 ILCS 5/13-206 provides that a payment or new promise to pay made in writing restarts the 10-year period from the date of that payment or promise; Illinois common law similarly treats voluntary part payment as a new promise on 5-year unwritten debts.
Illinois protections for medical debt
- Medical debt credit-reporting ban (Public Act 103-0648) (815 ILCS 505/2EEEE (eff. Jan. 1, 2025)) — Makes it unlawful for a consumer reporting agency to include, or maintain a file containing, adverse information relating to medical debt or medical-debt collection actions - effectively removing Illinois residents' medical debt from credit reports.
- Fair Patient Billing Act (210 ILCS 88) — Requires fair hospital billing and bars collection action until the patient has had a chance to verify the bill, apply for financial assistance (at least 60 days post-discharge), and be offered a reasonable payment plan if unable to pay in full.
- Hospital Uninsured Patient Discount Act (210 ILCS 89) — Requires Illinois hospitals to give uninsured patients free care at or below 200% of the federal poverty level and sliding-scale discounts up to 600% FPL, with annual caps on what hospitals may collect; patients generally must apply within 60 days of the bill.
- Illinois Medical Debt Relief Program (2024) (Ill. Pub. Act 103-0647 (HB 5290, Medical Debt Relief Act, eff. July 2, 2024)) — State-funded program that partners with a nonprofit to buy and retire qualifying residents' medical debt, projected to erase up to roughly $1 billion.
- Charity care is federal law. Nonprofit hospitals must maintain a written Financial Assistance Policy and publicize it (IRS §501(r)). If your bill is from a nonprofit hospital, ask for the FAP application before paying anything. How to apply →
- Surprise out-of-network bills. The federal No Surprises Act bans most out-of-network balance billing for emergency care and for out-of-network providers at in-network facilities. When a bill is illegal →
- Credit reporting. The national bureaus no longer report paid medical collections, medical collections under $500, or those less than a year old.
Rules Illinois sets for collectors
Beyond the federal FDCPA, Illinois has its own collection statute — the Illinois Collection Agency Act (205 ILCS 740 (recodified from 225 ILCS 425, eff. Jan. 1, 2022)). The Collection Agency Act licenses collection agencies and debt buyers and prohibits harassment, deception, and unfair practices, with discipline by IDFPR; abusive collection is also actionable under the Consumer Fraud and Deceptive Business Practices Act, 815 ILCS 505. Illinois also enacted coerced-debt protections for fraud/domestic-violence survivors in 2025.
Yes - collection agencies and debt buyers must be licensed by the Illinois Department of Financial and Professional Regulation, Division of Financial Institutions, under the Collection Agency Act, 205 ILCS 740.
Under the FDCPA, within five days of first contacting you a collector must send a written validation notice (15 U.S.C. §1692g). If you dispute the debt in writing within 30 days of that notice, the collector must stop collection activity until it mails you verification. There is no legal deadline for the collector to respond — but until it does, it cannot lawfully keep collecting.
If a collector is calling: the first 24 hours
- Do not confirm the debt is yours on the phone, and do not make a payment yet — get everything in writing first.
- Ask for the collector’s company name, mailing address, and the amount claimed. Write down the date and time.
- Check the dates: if the last activity on the bill is older than 5 years, the debt may be time-barred in Illinois.
- Send a written validation request within 30 days. Generate the letter free →
- If the bill is from a hospital, request an itemized bill and ask about financial assistance — billing errors are common and assistance is often retroactive.
Where to complain in Illinois
Illinois Attorney General Consumer Protection Bureau handles collection complaints at the state level. Federally, file with the Consumer Financial Protection Bureau — complaints become part of the public record collectors are judged on.
Common questions
How long can a debt collector pursue medical debt in Illinois?
The statute of limitations on medical debt in Illinois is 5 years (735 ILCS 5/13-205; 735 ILCS 5/13-206). Medical bills are treated as unwritten/implied contracts or open accounts under 735 ILCS 5/13-205 (5 years). Under Portfolio Acquisitions, LLC v. Feltman, 231 Ill. 2d 325 (2008), the 10-year written-contract period (13-206) applies only where the writing itself contains all essential terms including the amount owed - which hospital admission forms and bills ordinarily do not - so credit cards and medical accounts get 5 years. A collector could argue 10 years if a complete signed payment contract exists; that ambiguity is rare in practice. After that period, a lawsuit to collect can be challenged as time-barred, though collectors may still ask you to pay voluntarily.
Can I be sued for a medical bill after 5 years in Illinois?
A collector can still file a lawsuit after the limitations period, but the statute of limitations is a defense: if you raise it, a time-barred case should be dismissed. It is not automatic — you must respond to the lawsuit and assert it. Never ignore a court summons.
Does making a small payment restart the clock in Illinois?
Yes for written debts - 735 ILCS 5/13-206 provides that a payment or new promise to pay made in writing restarts the 10-year period from the date of that payment or promise; Illinois common law similarly treats voluntary part payment as a new promise on 5-year unwritten debts.
Does unpaid medical debt go on my credit report?
Since 2023, the three national credit bureaus (Equifax, Experian, TransUnion) do not report paid medical collections, medical collections under $500, or medical collections less than a year old. Larger, older unpaid medical collections can still appear.
Do hospitals in Illinois have to offer financial assistance?
Every nonprofit hospital in the United States is required by federal law (IRS Section 501(r)) to have a written Financial Assistance Policy and to tell patients about it. Illinois adds its own protections on top — see the list on this page.
How do I dispute a medical bill that went to collections?
Send the collector a written debt validation request. Under the federal FDCPA (15 U.S.C. §1692g), if you dispute the debt in writing within 30 days of their first notice, the collector must stop collecting until it mails you verification of the debt. You can generate that letter free on this site — no account needed.
Where do I complain about a debt collector in Illinois?
File with the Illinois Attorney General Consumer Protection Bureau (https://www.illinoisattorneygeneral.gov/consumer-protection/) and with the federal Consumer Financial Protection Bureau at consumerfinance.gov/complaint. Complaints are free and create a record.
Keep reading
- Statute of limitations on all debt in Illinois
- Free debt validation letter generator — no account needed
- Look up a debt collector — CFPB complaint records for the biggest agencies
- Charity care: hospital financial assistance, applied
- Medical debt laws in Maryland
- Medical debt laws in Nebraska
- Medical debt laws in North Dakota
- Medical debt laws in South Dakota
- Medical debt laws in West Virginia
- Medical debt laws in California
Legal information, not legal advice. Statutes change and courts interpret them — for advice on your situation, talk to a lawyer or your state’s legal aid office. Last reviewed AUG 2026.