On the eve of a start of a trial against two debt collection companies, the Attorney General of Washington yesterday announced that one of those companies had reached a settlement that will see it pay $1 million after it was accused of violating state law by failing to provide disclosures related to charity care and the individuals’ right to request certain information about the debt.
The Background: The two agencies — Harris & Harris and Optimum Outcomes — were sued back in 2022 for allegedly violating Washington’s Collection Agency Act and Consumer Protection Act as part of a crackdown against one of the state’s largest healthcare providers and what the AG described as collection tactics that were too aggressive.
- The healthcare provider earlier this month reached a settlement where it will provide $158 million in refunds and debt forgiveness to patients who likely qualified for reduced-cost or free healthcare based on their income levels.
- When it was sued, Harris & Harris denied the allegations and said it was “well versed” in helping administer charity care programs for its two dozen healthcare clients.
The Settlement: Under the terms of the settlement, Harris & Harris did not admit to any of the allegations that were made against it.
- For the next five years, the company shall include a statement in its first written notice that informs the individual of their right to request the original account number, the date of the last payment, and an itemized statement. It must also inform the individual that he or she may be eligible for charity care from the hospital and provide the hospital’s contact information.
- The $1 million fine will be used to cover the cost of the investigation, future monitoring and enforcement of this settlement, and future enforcement of the state law that was allegedly violated.
- If Harris & Harris violates the terms of the settlement, it may face additional penalties of $125,000 per violation.
