AG’s office sues collections agency for failing to advise consumers about medical debt protections

Unexpected medical debt can spiral Washingtonians into bankruptcy. 

State law requires that collections agencies be transparent about medical debt, but one company failed to properly inform people and collected more than $35 million. 

So the Attorney General's office is taking them to court.

SEATTLE — The Washington State Attorney General’s Office today filed suit against Renton Collections, Inc., for failing to disclose to consumers that they are legally entitled to information about their medical debt. The company sent more than 400,000 such collection notices to Washingtonians since 2019.

Medical debt can add up in unexpected and complex ways, which is why lawmakers have strengthened protections for Washington consumers burdened with medical debt. The Legislature amended the state Collection Agency Act in 2019 to require companies like Renton Collections give notice to people receiving collections letters about their right to request key information about the debt.

But from the date the law took effect through at least Dec. 1, 2024, Renton Collections failed to include these key disclosures in their notices. Their illegal debt collection practices netted more than $35 million from consumers while the agency made more than $7 million in commissions.

“Medical debt often stems from life’s unexpected events and can spiral households into bankruptcy,” said Washington State Attorney General Nick Brown.

“Our laws require collection agencies to respect people’s dignity by providing information about what they’re being asked to pay – but Renton Collections ignored this.”

The lawsuit alleges that the agency’s actions violate the Collection Agency Act as well as the state Consumer Protection Act.

The case, filed in King County Superior Court, seeks to prevent Renton Collections from any further violations of the law and to require the agency pay restitution to consumers for the total amount collected, plus interest.

The lawsuit also requests the court prohibit the business and other entities entitled to recover debt from these accounts from seeking more than the amount of the original claim. Consumers who received these illegal letters would not be subject to any interest, attorney fees or other costs the businesses may charge in any future collection attempts.

The lawsuit also seeks civil penalties of up to $7,500 per violation, as well as fees and costs for the Attorney General’s Office.

The Consumer Protection Division is funded through money recovered from businesses who have violated Washington’s Consumer Protection Act and similar laws, not by taxpayers. 

Specifically, a portion of Consumer Protection recoveries go into the Attorney General's Civil Justice Operating Fund, which supports the Consumer Protection, Antitrust, Wing Luke Civil Rights, and Environmental Protection divisions. It also directly funds the Medicaid Fraud Control and the Complex Litigation divisions.