The Washington State Attorney General's Office has initiated legal action against Renton Collections, Inc., alleging the company failed to inform consumers of their rights regarding medical debt. Since 2019, Renton Collections reportedly sent over 400,000 collection notices without including required disclosures about consumer rights under the state Collection Agency Act.
Washington lawmakers have bolstered protections for those dealing with medical debt, mandating that collection agencies provide information about debts. However, Renton Collections allegedly omitted these disclosures from its notices between the law's enactment and December 1, 2024. The agency is said to have collected more than $35 million from consumers during this period while earning over $7 million in commissions.
"Medical debt often stems from life’s unexpected events and can spiral households into bankruptcy," stated 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 claims violations of both the Collection Agency Act and the state Consumer Protection Act. Filed in King County Superior Court, it seeks to halt further legal breaches by Renton Collections and demands restitution for consumers totaling the amount collected plus interest.
Additionally, the lawsuit aims to prevent businesses from recovering more than the original claim amount on these accounts. Consumers who received such letters would not face interest or additional fees in future collections.
Civil penalties up to $7,500 per violation are also sought alongside fees and costs for the Attorney General’s Office.
Funding for the Consumer Protection Division comes from recoveries made under Washington's Consumer Protection Act and similar laws. These funds support various divisions within the Attorney General's Office without relying on taxpayer money.
The Washington State Attorney General serves as a legal representative for state agencies and enforces consumer protection laws among other responsibilities across nearly all counties in Washington.