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Medical debt laws in Vermont

VERMONT · STATUTE-SOURCED · MAINTAINED — LAST REVIEWED AUG 2026 · FREE, NO ACCOUNT

In Vermont, the statute of limitations on medical debt is 6 years (12 V.S.A. § 511). Vermont's general civil catchall, 12 V.S.A. § 511, gives 6 years for contract actions whether written or oral, and there is no separate open-account limitations statute in 12 V.S.A. ch. 23, so an unpaid medical bill is 6 years regardless of classification (an older practitioner analysis floated 3 years via UCC 9A V.S.A. § 3-118(g), but that provision governs negotiable instruments, not account debt). 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.

Vermont — statute of limitations on debt
Written contracts6 years
Oral agreements6 years
Open accounts (credit cards)6 years
Medical debt6 years
SOURCE: 12 V.S.A. § 511

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: Vermont has no general statute on point for account debts; under common-law principles recognized in Vermont a voluntary partial payment or clear acknowledgment of the debt can start the 6-year period running anew, so consumers should assume payment restarts the clock.

Vermont protections for medical debt

  • Medical debt banned from credit reports + state debt relief (S.27, 2025) (2025 Vt. Acts & Resolves No. 21 (S.27), eff. July 1, 2025) — Credit reporting agencies are prohibited from reporting or maintaining any medical-debt information on Vermont consumers' credit reports, and the State Treasurer is funded ($1M FY2026) to buy and abolish qualifying residents' medical debt (income ≤400% FPL or debt ≥5% of household income).
  • Hospital financial assistance and collection limits (18 V.S.A. §§ 9482–9484) — Large health care facilities must give a 100% discount to patients at or below 250% FPL and at least 40% between 250–400% FPL, screen and publicize assistance, may not charge interest or prepayment penalties to assistance-eligible patients, and must offer payment plans capped at 5% of gross monthly household income.
  • Ban on selling medical debt (18 V.S.A. § 9485) — No large health care facility may sell its medical debt (except transfers to qualifying nonprofits that cancel the debt).
  • 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 Vermont sets for collectors

Beyond the federal FDCPA, Vermont has its own collection statute — the Vermont Consumer Protection Act and AG Consumer Protection Rule CP 104 (Debt Collection) (9 V.S.A. § 2453 (9 V.S.A. ch. 63); Vt. Consumer Protection Rule CP 104). Debt collection abuses are policed as unfair/deceptive acts under the Consumer Protection Act, with the AG's CP 104 rule setting specific prohibited collection practices; the Vermont Supreme Court has applied the Act to collection agencies (State v. International Collection Services, 156 Vt. 540 (1991)).

No — Vermont does not require creditors, collection agencies, or debt buyers to be licensed, registered, or bonded to collect debts (lenders need licenses; collectors do not).

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

  1. Do not confirm the debt is yours on the phone, and do not make a payment yet — get everything in writing first.
  2. Ask for the collector’s company name, mailing address, and the amount claimed. Write down the date and time.
  3. Check the dates: if the last activity on the bill is older than 6 years, the debt may be time-barred in Vermont.
  4. Send a written validation request within 30 days. Generate the letter free →
  5. 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 Vermont

Vermont Attorney General Consumer Assistance Program (CAP) 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 Vermont?

The statute of limitations on medical debt in Vermont is 6 years (12 V.S.A. § 511). Vermont's general civil catchall, 12 V.S.A. § 511, gives 6 years for contract actions whether written or oral, and there is no separate open-account limitations statute in 12 V.S.A. ch. 23, so an unpaid medical bill is 6 years regardless of classification (an older practitioner analysis floated 3 years via UCC 9A V.S.A. § 3-118(g), but that provision governs negotiable instruments, not account debt). 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 6 years in Vermont?

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 Vermont?

Vermont has no general statute on point for account debts; under common-law principles recognized in Vermont a voluntary partial payment or clear acknowledgment of the debt can start the 6-year period running anew, so consumers should assume payment restarts the clock.

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 Vermont 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. Vermont 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 Vermont?

File with the Vermont Attorney General Consumer Assistance Program (CAP) (https://ago.vermont.gov/cap) and with the federal Consumer Financial Protection Bureau at consumerfinance.gov/complaint. Complaints are free and create a record.

Keep reading

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.

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