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DISCLAIMER: This article is based on a complaint. The defendant has not responded to the complaint to present its side of the case. The claims mentioned are accusations and should be considered as such until and unless proven otherwise.
If this were an episode of “Law & Order” it would be one of those “ripped from the headlines” episodes. A class-action lawsuit has been filed against a collection operation in Washington state, accusing it of violating the Fair Debt Collection Practices Act and state law by failing to disclose the availability of charity care to the plaintiff.
The background: The plaintiff received medical care at a hospital in 2017, and was billed for the services rendered. At the time, the plaintiff’s gross household income was below 500% of the federal poverty level, which meant she was potentially eligible for charity care. However, the hospital failed to screen the plaintiff for eligibility for charity care at the time of service or at any time thereafter, according to the complaint. Instead, the debt was assigned to the defendant in 2018 without determining whether the plaintiff qualified for charity care.
- In 2022, the defendant filed a collection lawsuit against the plaintiff, seeking a total of $3,592.12 plus additional interest and fees. The complaint did not inform the plaintiff of her right to apply for charity care, nor did it provide other legally required disclosures under Washington state law, according to the complaint.
- The plaintiff learned of her eligibility for charity care only after a judgment had already been entered against her, and her subsequent application for charity care was denied because her account had already gone to collections and a judgment had been awarded.
The claims: The plaintiff is accusing the defendant of engaging in unfair or deceptive practices by attempting to collect debts without properly informing patients of their eligibility for charity care, as required by Washington state law.
- The plaintiff also claims that the defendant violated Section 16922(2)(A) of the FDCPA by falsely representing the legal status of the debt and Section 1692f(1) by using unfair means to collect an amount not legally permissible.
- The suit seeks to include any other patients from whom the defendant attempted to collect medical debts assigned by the hospital without providing notice of eligibility for charity care, within four years preceding the filing of this case.
