On April 13, the Washington Attorney General’s Office (AGO) announced it had filed a consent decree in King County Superior Court that requires a debt collection agency to provide at least $1.5 million in medical debt relief to affected consumers. The state alleged that the agency violated the state Consumer Protection Act and Collection Agency Act by failing to include statutorily required disclosures in collection notices sent to nearly 400,000 Washington residents after July 28, 2019. Specifically, the AGO alleged the agency did not disclose that consumers could request an itemized statement and other required information, including: (i) medical creditor information; (ii) dates of service; (iii) health care services; (iv) the amount of principal; (v) bill adjustments; (vi) payments received; (vii) interest or fees; and (viii) eligibility for charity care or other reductions.

The consent decree also bars the agency from ever collecting fees, costs or interest on the affected medical debt and requires payment of $1 million to the state for costs, attorney’s fees, and future enforcement efforts. The decree provides that the required debt relief may come in the form of forgiveness of the original debt or of interest, fees, and other charges above the original principal amount. In agreeing to the settlement, the agency did not admit wrongdoing. Violations of the consent decree may result in civil penalties of up to $125,000 per violation.