The Washington State Attorney General’s Office has secured $1.5 million in medical debt relief for consumers as part of a settlement with Renton Collections Inc., resolving a lawsuit that alleged the company failed to inform hundreds of thousands of Washingtonians of their legal rights.
Filed in King County Superior Court, the consent decree requires Renton Collections to provide at least $1.5 million in debt relief to consumers who received medical debt collection notices without disclosures required under Washington law, according to the agreement.
The Attorney General’s Office alleged the company sent more than 400,000 collection notices since 2019 without informing recipients that they had the right to request key details about their medical debt, including itemized billing information and eligibility for financial assistance programs.
“There’s a story behind each collection notice—like a neighbor just trying to stay healthy but caught in a downward spiral of debt,” Washington Attorney General Nick Brown said. “That’s why I’m passionate about fighting to make sure all consumers know their rights, especially when it comes to paying for health care. Debt collectors must inform Washington consumers of their protections under the law, and if not, they will hear from us.”
Medical debt can accumulate quickly, particularly for patients who may be unaware of available financial assistance programs. In Washington, individuals with family incomes up to 400% of the federal poverty level may qualify for help paying hospital bills.
Under Washington state law, collection agencies are required to notify consumers of their right to request detailed information about their medical debt, including dates of service, the health care services provided, adjustments to the bill, payments received, any fees or interest, and whether the patient was eligible for charity care or other reductions.
The Attorney General’s Office alleged Renton Collections failed to include those disclosures in its initial collection notices, in violation of the Collection Agency Act and the Consumer Protection Act.
As part of the settlement, Renton Collections is barred from collecting interest, fees, or other charges beyond the original principal amount on the medical debts at issue in the case. The company must also include the required disclosure language in all future medical debt collection notices, according to the agreement.
The consent decree also requires Renton Collections to pay $1 million to the state to cover attorney’s fees, enforcement, and future consumer protection efforts.
According to the agreement, the $1.5 million in consumer relief will be provided through forgiveness of debt, including the elimination of interest, fees, and other charges added to the original balances.
The consent decree states that Renton Collections does not admit the allegations in the complaint and that the settlement does not constitute an admission of wrongdoing.
