Medical debt

AN ACT Relating to protecting consumers by removing barriers 1
created by medical debt; amending RCW 19.16.100, 19.182.040, 2
70.41.400, and 70.54.005; reenacting and amending RCW 19.16.250; and 3
adding a new section to chapter 70.54 RCW. 4
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:5
Sec. 1. RCW 19.16.100 and 2020 c 30 s 1 are each amended to read 6
as follows: 7
Unless a different meaning is plainly required by the context, 8
the following words and phrases as hereinafter used in this chapter 9
shall have the following meanings: 10
(1) "Board" means the Washington state collection agency board.11
(2) "Claim" means any obligation for the payment of money or 12
thing of value arising out of any agreement or contract, express or 13
implied. 14
(3) "Client" or "customer" means any person authorizing or 15
employing a collection agency to collect a claim. 16
(4) "Collection agency" means and includes: 17
(a) Any person directly or indirectly engaged in soliciting 18
claims for collection, or collecting or attempting to collect claims 19
owed or due or asserted to be owed or due another person;20
S-0298.5
SENATE BILL 5480
State of Washington 69th Legislature 2025 Regular Session
By Senators Riccelli, Bateman, Alvarado, Chapman, Hasegawa, Lovelett,
Nobles, Orwall, Ramos, Robinson, Slatter, Stanford, Trudeau, Valdez,
and C. Wilson
Read first time 01/24/25. Referred to Committee on Law & Justice.
p. 1 SB 5480
(b) Any person who directly or indirectly furnishes or attempts 1
to furnish, sells, or offers to sell forms represented to be a 2
collection system or scheme intended or calculated to be used to 3
collect claims even though the forms direct the debtor to make 4
payment to the creditor and even though the forms may be or are 5
actually used by the creditor himself or herself in his or her own 6
name; 7
(c) Any person who in attempting to collect or in collecting his 8
or her own claim uses a fictitious name or any name other than his or 9
her own which would indicate to the debtor that a third person is 10
collecting or attempting to collect such claim; 11
(d) A debt buyer as defined in this section; 12
(e) Any person or entity attempting to enforce a lien under 13
chapter 60.44 RCW, other than the person or entity originally 14
entitled to the lien. 15
(5) "Collection agency" does not mean and does not include:16
(a) Any individual engaged in soliciting claims for collection, 17
or collecting or attempting to collect claims on behalf of a licensee 18
under this chapter, if said individual is an employee of the 19
licensee; 20
(b) Any individual collecting or attempting to collect claims for 21
not more than one employer, if all the collection efforts are carried 22
on in the name of the employer and if the individual is an employee 23
of the employer; 24
(c) Any person whose collection activities are carried on in his, 25
her, or its true name and are confined and are directly related to 26
the operation of a business other than that of a collection agency, 27
such as but not limited to: Trust companies; savings and loan 28
associations; building and loan associations; abstract companies 29
doing an escrow business; real estate brokers; property management 30
companies collecting assessments, charges, or fines on behalf of 31
condominium unit owners associations, associations of apartment 32
owners, or homeowners' associations; public officers acting in their 33
official capacities; persons acting under court order; lawyers; 34
insurance companies; credit unions; loan or finance companies; 35
mortgage banks; and banks; 36
(d) Any person who on behalf of another person prepares or mails 37
monthly or periodic statements of accounts due if all payments are 38
made to that other person and no other collection efforts are made by 39
the person preparing the statements of account; 40
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(e) An "out-of-state collection agency" as defined in this 1
chapter; or 2
(f) Any person while acting as a debt collector for another 3
person, both of whom are related by common ownership or affiliated by 4
corporate control, if the person acting as a debt collector does so 5
only for persons to whom it is so related or affiliated and if the 6
principal business of the person is not the collection of debts.7
(6) "Commercial claim" means any obligation for payment of money 8
or thing of value arising out of any agreement or contract, express 9
or implied, where the transaction which is the subject of the 10
agreement or contract is not primarily for personal, family, or 11
household purposes. 12
(7) "Debt buyer" means any person or entity that is engaged in 13
the business of purchasing delinquent or charged off claims for 14
collection purposes, whether it collects the claims itself or hires a 15
third party for collection or an attorney for litigation in order to 16
collect such claims. 17
(8) "Debtor" means any person owing or alleged to owe a claim.18
(9) "Director" means the director of licensing.19
(10) "Licensee" means any person licensed under this chapter.20
(11) "Medical debt" means any obligation for the payment of money 21
arising out of any agreement or contract, express or implied, for the 22
provision of health care services as defined in RCW 48.44.010 and the 23
following health care products and devices: Manual and electric 24
wheelchairs, hospital beds for home use, mobility scooters, 25
adjustable recliner chairs, continuous positive airway pressure 26
machines, bi-level positive airway pressure machines, oxygen 27
concentrators, ventilators, artificial or prosthetic limbs, hearing 28
aids, cochlear implants, infusion pumps, insulin pumps, home dialysis 29
machines, pacemakers, insulin management devices, stair and platform 30
lifts, standing frames and walkers, heart rate monitors, blood 31
pressure monitoring systems, in-home fetal monitors, cardiac 32
monitors, defibrillators, custom-made or artificial eyes, advanced 33
orthopedic implants, ventricular assist devices, dental implants, and 34
voice amplifiers. Medical debt includes debt accrued using credit 35
cards issued by a financial institution for the specific purpose and 36
use of payment for health care services, products, and devices . In 37
the context of "medical debt," "charity care" has the same meaning as 38
provided in RCW 70.170.020. 39
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(12) "Out-of-state collection agency" means a person whose 1
activities within this state are limited to collecting debts from 2
debtors located in this state by means of interstate communications, 3
including telephone, mail, or facsimile transmission, from the 4
person's location in another state on behalf of clients located 5
outside of this state, but does not include any person who is 6
excluded from the definition of the term "debt collector" under the 7
federal fair debt collection practices act (15 U.S.C. Sec. 1692a(6)).8
(13) "Person" includes individual, firm, partnership, trust, 9
joint venture, association, or corporation. 10
(14) "Statement of account" means a report setting forth only 11
amounts billed, invoices, credits allowed, or aged balance due.12
NEW SECTION. Sec. 2. A new section is added to chapter 70.54 13
RCW to read as follows: 14
(1) A medical debt is void and unenforceable if a person, health 15
care provider, health care facility, or licensed collection agency 16
violates this section by furnishing information regarding the medical 17
debt to a consumer credit reporting agency. 18
(2) It is unlawful to enter into a contract creating a medical 19
debt that does not include the following terms: "A holder of this 20
medical debt is prohibited from furnishing any information related to 21
this debt to a consumer credit reporting agency. In addition to any 22
other penalties allowed by law, if a person, health care provider, or 23
health care facility violates this section by furnishing information 24
regarding this debt to a consumer credit reporting agency, the debt 25
shall be void and unenforceable." 26
(3) Any contract creating a medical debt entered into on or after 27
the effective date of this section that does not include the term 28
described in subsection (2) of this section is void and 29
unenforceable. 30
(4) The legislature finds that the practices covered by this 31
section are matters vitally affecting the public interest for the 32
purpose of applying the consumer protection act, chapter 19.86 RCW. A 33
violation of this section is not reasonable in relation to the 34
development and preservation of business and is an unfair or 35
deceptive act in trade or commerce and an unfair method of 36
competition for the purpose of applying the consumer protection act, 37
chapter 19.86 RCW. 38
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Sec. 3. RCW 19.16.250 and 2019 c 227 s 4 and 2019 c 201 s 2 are 1
each reenacted and amended to read as follows: 2
No licensee or employee of a licensee shall: 3
(1) Directly or indirectly aid or abet any unlicensed person to 4
engage in business as a collection agency in this state or receive 5
compensation from such unlicensed person: PROVIDED, That nothing in 6
this chapter shall prevent a licensee from accepting, as forwardee, 7
claims for collection from a collection agency or attorney whose 8
place of business is outside the state. 9
(2) Collect or attempt to collect a claim by the use of any means 10
contrary to the postal laws and regulations of the United States 11
postal department. 12
(3) Publish or post or cause to be published or posted, any list 13
of debtors commonly known as "bad debt lists" or threaten to do so. 14
For purposes of this chapter, a "bad debt list" means any list of 15
natural persons alleged to fail to honor their lawful debts. However, 16
nothing herein shall be construed to prohibit a licensee from 17
communicating to its customers or clients by means of a coded list, 18
the existence of a check dishonored because of insufficient funds, 19
not sufficient funds or closed account by the financial institution 20
servicing the debtor's checking account: PROVIDED, That the debtor's 21
identity is not readily apparent: PROVIDED FURTHER, That the licensee 22
complies with the requirements of subsection (10)(e) of this section.23
(4) Have in his or her possession or make use of any badge, use a 24
uniform of any law enforcement agency or any simulation thereof, or 25
make any statements which might be construed as indicating an 26
official connection with any federal, state, county, or city law 27
enforcement agency, or any other governmental agency, while engaged 28
in collection agency business. 29
(5) Perform any act or acts, either directly or indirectly, 30
constituting the unauthorized practice of law. 31
(6) Advertise for sale or threaten to advertise for sale any 32
claim as a means of endeavoring to enforce payment thereof or 33
agreeing to do so for the purpose of soliciting claims, except where 34
the licensee has acquired claims as an assignee for the benefit of 35
creditors or where the licensee is acting under court order.36
(7) Use any name while engaged in the making of a demand for any 37
claim other than the name set forth on his or her or its current 38
license issued hereunder. 39
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(8) Give or send to any debtor or cause to be given or sent to 1
any debtor, any notice, letter, message, or form, other than through 2
proper legal action, process, or proceedings, which represents or 3
implies that a claim exists unless it shall indicate in clear and 4
legible type: 5
(a) The name of the licensee and the city, street, and number at 6
which he or she is licensed to do business; 7
(b) The name of the original creditor to whom the debtor owed the 8
claim if such name is known to the licensee or employee: PROVIDED, 9
That upon written request of the debtor, the licensee shall provide 10
this name to the debtor or cease efforts to collect on the debt until 11
this information is provided; 12
(c) If the notice, letter, message, or form is the first notice 13
to the debtor or if the licensee is attempting to collect a different 14
amount than indicated in his or her or its first notice to the 15
debtor, an itemization of the claim asserted must be made including:16
(i) Amount owing on the original obligation at the time it was 17
received by the licensee for collection or by assignment;18
(ii) Interest or service charge, collection costs, or late 19
payment charges, if any, added to the original obligation by the 20
original creditor, customer or assignor before it was received by the 21
licensee for collection, if such information is known by the licensee 22
or employee: PROVIDED, That upon written request of the debtor, the 23
licensee shall make a reasonable effort to obtain information on such 24
items and provide this information to the debtor; 25
(iii) Interest or service charge, if any, added by the licensee 26
or customer or assignor after the obligation was received by the 27
licensee for collection; 28
(iv) Collection costs, if any, that the licensee is attempting to 29
collect; 30
(v) Attorneys' fees, if any, that the licensee is attempting to 31
collect on his or her or its behalf or on the behalf of a customer or 32
assignor; and 33
(vi) Any other charge or fee that the licensee is attempting to 34
collect on his or her or its own behalf or on the behalf of a 35
customer or assignor; 36
(d) If the notice, letter, message, or form concerns a judgment 37
obtained against the debtor, no itemization of the amounts contained 38
in the judgment is required, except postjudgment interest, if 39
claimed, and the current account balance; 40
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(e) If the notice, letter, message, or form is the first notice 1
to the debtor, an itemization of the claim asserted must be made 2
including the following information: 3
(i) The original account number or redacted original account 4
number assigned to the debt, if known to the licensee or employee: 5
PROVIDED, That upon written request of the debtor, the licensee must 6
make a reasonable effort to obtain this information or cease efforts 7
to collect on the debt until this information is provided; and8
(ii) The date of the last payment to the creditor on the subject 9
debt by the debtor, if known to the licensee or employee: PROVIDED, 10
That upon written request of the debtor, the licensee must make a 11
reasonable effort to obtain this information or cease efforts to 12
collect on the debt until this information is provided.13
(9) Communicate in writing with a debtor concerning a claim 14
through a proper legal action, process, or proceeding, where such 15
communication is the first written communication with the debtor, 16
without providing the information set forth in subsection (8)(c) of 17
this section in the written communication. 18
(10) Communicate or threaten to communicate, the existence of a 19
claim to a person other than one who might be reasonably expected to 20
be liable on the claim in any manner other than through proper legal 21
action, process, or proceedings except under the following 22
conditions: 23
(a) Except as provided in subsection (28)(((c))) (a)(iii) of this 24
section, a licensee or employee of a licensee may inform a credit 25
reporting bureau of the existence of a claim. If the licensee or 26
employee of a licensee reports a claim to a credit reporting bureau, 27
the licensee shall, upon receipt of written notice from the debtor 28
that any part of the claim is disputed, notify the credit reporting 29
bureau of the dispute by written or electronic means and create a 30
record of the fact of the notification and when the notification was 31
provided; 32
(b) A licensee or employee in collecting or attempting to collect 33
a claim may communicate the existence of a claim to a debtor's 34
employer if the claim has been reduced to a judgment;35
(c) A licensee or employee in collecting or attempting to collect 36
a claim that has not been reduced to judgment, may communicate the 37
existence of a claim to a debtor's employer if: 38
(i) The licensee or employee has notified or attempted to notify 39
the debtor in writing at his or her last known address or place of 40
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employment concerning the claim and the debtor after a reasonable 1
time has failed to pay the claim or has failed to agree to make 2
payments on the claim in a manner acceptable to the licensee, and3
(ii) The debtor has not in writing to the licensee disputed any 4
part of the claim: PROVIDED, That the licensee or employee may only 5
communicate the existence of a claim which has not been reduced to 6
judgment to the debtor's employer once unless the debtor's employer 7
has agreed to additional communications. 8
(d) A licensee may for the purpose of locating the debtor or 9
locating assets of the debtor communicate the existence of a claim to 10
any person who might reasonably be expected to have knowledge of the 11
whereabouts of a debtor or the location of assets of the debtor if 12
the claim is reduced to judgment, or if not reduced to judgment, 13
when: 14
(i) The licensee or employee has notified or attempted to notify 15
the debtor in writing at his or her last known address or last known 16
place of employment concerning the claim and the debtor after a 17
reasonable time has failed to pay the claim or has failed to agree to 18
make payments on the claim in a manner acceptable to the licensee, 19
and 20
(ii) The debtor has not in writing disputed any part of the 21
claim. 22
(e) A licensee may communicate the existence of a claim to its 23
customers or clients if the claim is reduced to judgment, or if not 24
reduced to judgment, when: 25
(i) The licensee has notified or attempted to notify the debtor 26
in writing at his or her last known address or last known place of 27
employment concerning the claim and the debtor after a reasonable 28
time has failed to pay the claim or has failed to agree to make 29
payments on the claim in a manner acceptable to the licensee, and30
(ii) The debtor has not in writing disputed any part of the 31
claim. 32
(11) Threaten the debtor with impairment of his or her credit 33
rating if a claim is not paid: PROVIDED, That advising a debtor that 34
the licensee has reported or intends to report a claim to a credit 35
reporting agency is not considered a threat if the licensee actually 36
has reported or intends to report the claim to a credit reporting 37
agency. 38
(12) Communicate with the debtor after notification in writing 39
from an attorney representing such debtor that all further 40
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communications relative to a claim should be addressed to the 1
attorney: PROVIDED, That if a licensee requests in writing 2
information from an attorney regarding such claim and the attorney 3
does not respond within a reasonable time, the licensee may 4
communicate directly with the debtor until he or she or it again 5
receives notification in writing that an attorney is representing the 6
debtor. 7
(13) Communicate with a debtor or anyone else in such a manner as 8
to harass, intimidate, threaten, or embarrass a debtor, including but 9
not limited to communication at an unreasonable hour, with 10
unreasonable frequency, by threats of force or violence, by threats 11
of criminal prosecution, and by use of offensive language. A 12
communication shall be presumed to have been made for the purposes of 13
harassment if: 14
(a) It is made with a debtor or spouse in any form, manner, or 15
place, more than three times in a single week, unless the licensee is 16
responding to a communication from the debtor or spouse;17
(b) It is made with a debtor at his or her place of employment 18
more than one time in a single week, unless the licensee is 19
responding to a communication from the debtor; 20
(c) It is made with the debtor or spouse at his or her place of 21
residence between the hours of 9:00 p.m. and 7:30 a.m. A call to a 22
telephone is presumed to be received in the local time zone to which 23
the area code of the number called is assigned for landline numbers, 24
unless the licensee reasonably believes the telephone is located in a 25
different time zone. If the area code is not assigned to landlines in 26
any specific geographic area, such as with toll -free telephone 27
numbers, a call to a telephone is presumed to be received in the 28
local time zone of the debtor's last known place of residence, unless 29
the licensee reasonably believes the telephone is located in a 30
different time zone. 31
(14) Communicate with the debtor through use of forms or 32
instruments that simulate the form or appearance of judicial process, 33
the form or appearance of government documents, or the simulation of 34
a form or appearance of a telegraphic or emergency message.35
(15) Communicate with the debtor and represent or imply that the 36
existing obligation of the debtor may be or has been increased by the 37
addition of attorney fees, investigation fees, service fees, or any 38
other fees or charges when in fact such fees or charges may not 39
legally be added to the existing obligation of such debtor.40
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(16) Threaten to take any action against the debtor which the 1
licensee cannot legally take at the time the threat is made.2
(17) Send any telegram or make any telephone calls to a debtor or 3
concerning a debt or for the purpose of demanding payment of a claim 4
or seeking information about a debtor, for which the charges are 5
payable by the addressee or by the person to whom the call is made: 6
PROVIDED, That: 7
(a) This subsection does not prohibit a licensee from attempting 8
to communicate by way of a cellular telephone or other wireless 9
device: PROVIDED, That a licensee cannot cause charges to be incurred 10
to the recipient of the attempted communication more than three times 11
in any calendar week when the licensee knows or reasonably should 12
know that the number belongs to a cellular telephone or other 13
wireless device, unless the licensee is responding to a communication 14
from the debtor or the person to whom the call is made.15
(b) The licensee is not in violation of (a) of this subsection if 16
the licensee at least monthly updates its records with information 17
provided by a commercial provider of cellular telephone lists that 18
the licensee in good faith believes provides reasonably current and 19
comprehensive data identifying cellular telephone numbers, calls a 20
number not appearing in the most recent list provided by the 21
commercial provider, and does not otherwise know or reasonably should 22
know that the number belongs to a cellular telephone.23
(c) This subsection may not be construed to increase the number 24
of communications permitted pursuant to subsection (13)(a) of this 25
section. 26
(18) Call, or send a text message or other electronic 27
communication to, a cellular telephone or other wireless device more 28
than twice in any day when the licensee knows or reasonably should 29
know that the number belongs to a cellular telephone or other 30
wireless device, unless the licensee is responding to a communication 31
from the debtor or the person to whom the call, text message, or 32
other electronic communication is made. The licensee is not in 33
violation of this subsection if the licensee at least monthly updates 34
its records with information provided by a commercial provider of 35
cellular telephone lists that the licensee in good faith believes 36
provides reasonably current and comprehensive data identifying 37
cellular telephone numbers, calls a number not appearing in the most 38
recent list provided by the commercial provider, and does not 39
otherwise know or reasonably should know that the number belongs to a 40
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cellular telephone. Nothing in this subsection may be construed to 1
increase the number of communications permitted pursuant to 2
subsection (13)(a) of this section. 3
(19) Intentionally block its telephone number from displaying on 4
a debtor's telephone. 5
(20) In any manner convey the impression that the licensee is 6
vouched for, bonded to or by, or is an instrumentality of the state 7
of Washington or any agency or department thereof. 8
(21) Collect or attempt to collect in addition to the principal 9
amount of a claim any sum other than allowable interest, collection 10
costs or handling fees expressly authorized by statute, and, in the 11
case of suit, attorney's fees and taxable court costs. A licensee may 12
collect or attempt to collect collection costs and fees, including 13
contingent collection fees, as authorized by a written agreement or 14
contract, between the licensee's client and the debtor, in the 15
collection of a commercial claim. The amount charged to the debtor 16
for collection services shall not exceed thirty-five percent of the 17
commercial claim. 18
(22) Procure from a debtor or collect or attempt to collect on 19
any written note, contract, stipulation, promise or acknowledgment 20
under which a debtor may be required to pay any sum other than 21
principal, allowable interest, except as noted in subsection (21) of 22
this section, and, in the case of suit, attorney's fees and taxable 23
court costs. 24
(23) Bring an action or initiate an arbitration proceeding on a 25
claim when the licensee knows, or reasonably should know, that such 26
suit or arbitration is barred by the applicable statute of 27
limitations. 28
(24) Upon notification by a debtor that the debtor disputes all 29
debts arising from a series of dishonored checks, automated 30
clearinghouse transactions on a demand deposit account, or other 31
preprinted written instruments, initiate oral contact with a debtor 32
more than one time in an attempt to collect from the debtor debts 33
arising from the identified series of dishonored checks, automated 34
clearinghouse transactions on a demand deposit account, or other 35
preprinted written instruments when: (a) Within the previous one 36
hundred eighty days, in response to the licensee's attempt to collect 37
the initial debt assigned to the licensee and arising from the 38
identified series of dishonored checks, automated clearinghouse 39
transactions on a demand deposit account, or other preprinted written 40
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instruments, the debtor in writing notified the licensee that the 1
debtor's checkbook or other series of preprinted written instruments 2
was stolen or fraudulently created; (b) the licensee has received 3
from the debtor a certified copy of a police report referencing the 4
theft or fraudulent creation of the checkbook, automated 5
clearinghouse transactions on a demand deposit account, or series of 6
preprinted written instruments; (c) in the written notification to 7
the licensee or in the police report, the debtor identified the 8
financial institution where the account was maintained, the account 9
number, the magnetic ink character recognition number, the full bank 10
routing and transit number, and the check numbers of the stolen 11
checks, automated clearinghouse transactions on a demand deposit 12
account, or other preprinted written instruments, which check numbers 13
included the number of the check that is the subject of the 14
licensee's collection efforts; (d) the debtor provides, or within the 15
previous one hundred eighty days provided, to the licensee a legible 16
copy of a government-issued photo identification, which contains the 17
debtor's signature and which was issued prior to the date of the 18
theft or fraud identified in the police report; and (e) the debtor 19
advised the licensee that the subject debt is disputed because the 20
identified check, automated clearinghouse transaction on a demand 21
deposit account, or other preprinted written instrument underlying 22
the debt is a stolen or fraudulently created check or instrument.23
The licensee is not in violation of this subsection if the 24
licensee initiates oral contact with the debtor more than one time in 25
an attempt to collect debts arising from the identified series of 26
dishonored checks, automated clearinghouse transactions on a demand 27
deposit account, or other preprinted written instruments when: (i) 28
The licensee acted in good faith and relied on their established 29
practices and procedures for batching, recording, or packeting debtor 30
accounts, and the licensee inadvertently initiates oral contact with 31
the debtor in an attempt to collect debts in the identified series 32
subsequent to the initial debt assigned to the licensee; (ii) the 33
licensee is following up on collection of a debt assigned to the 34
licensee, and the debtor has previously requested more information 35
from the licensee regarding the subject debt; (iii) the debtor has 36
notified the licensee that the debtor disputes only some, but not all 37
the debts arising from the identified series of dishonored checks, 38
automated clearinghouse transactions on a demand deposit account, or 39
other preprinted written instruments, in which case the licensee 40
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shall be allowed to initiate oral contact with the debtor one time 1
for each debt arising from the series of identified checks, automated 2
clearinghouse transactions on a demand deposit account, or written 3
instruments and initiate additional oral contact for those debts that 4
the debtor acknowledges do not arise from stolen or fraudulently 5
created checks or written instruments; (iv) the oral contact is in 6
the context of a judicial, administrative, arbitration, mediation, or 7
similar proceeding; or (v) the oral contact is made for the purpose 8
of investigating, confirming, or authenticating the information 9
received from the debtor, to provide additional information to the 10
debtor, or to request additional information from the debtor needed 11
by the licensee to accurately record the debtor's information in the 12
licensee's records. 13
(25) Bring an action or initiate an arbitration proceeding on a 14
claim for any amounts related to a transfer of sale of a vehicle 15
when: 16
(a) The licensee has been informed or reasonably should know that 17
the department of licensing transfer of sale form was filed in 18
accordance with RCW 46.12.650 (1) through (3); 19
(b) The licensee has been informed or reasonably should know that 20
the transfer of the vehicle either (i) was not made pursuant to a 21
legal transfer or (ii) was not voluntarily accepted by the person 22
designated as the purchaser/transferee; and 23
(c) Prior to the commencement of the action or arbitration, the 24
licensee has received from the putative transferee a copy of a police 25
report referencing that the transfer of sale of the vehicle either 26
(i) was not made pursuant to a legal transfer or (ii) was not 27
voluntarily accepted by the person designated as the purchaser/28
transferee. 29
(26) Submit an affidavit or other request pursuant to chapter 30
6.32 RCW asking a superior or district court to transfer a bond 31
posted by a debtor subject to a money judgment to the licensee, when 32
the debtor has appeared as required. 33
(27) Serve a debtor with a summons and complaint unless the 34
summons and complaint have been filed with the court and bear the 35
case number assigned by the court. 36
(28)(a) If the claim involves medical debt: 37
(((a))) (i) Fail to include, with the first written notice to the 38
debtor, a statement that informs the debtor of the debtor's right to 39
request the original account number or redacted original account 40
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number assigned to the debt, the date of the last payment, and an 1
itemized statement as provided in (((b))) (a)(ii) of this subsection 2
(28); 3
(((b)(i))) (ii)(A) Fail to provide to the debtor, upon written or 4
oral request by the debtor for more information than is contained in 5
a general balance due letter, an itemized statement free of charge. 6
Unless and until the licensee provides the itemized statement, the 7
licensee must cease all collection efforts. The itemized statement 8
must include: 9
(((A))) (I) The name and address of the medical creditor;10
(((B))) (II) The date, dates, or date range of service;11
(((C))) (III) The health care services provided to the patient as 12
indicated by the health care provider in a statement provided to the 13
licensee; 14
(((D))) (IV) The amount of principal for any medical debt or 15
debts incurred; 16
(((E))) (V) Any adjustment to the bill, such as negotiated 17
insurance rates or other discounts; 18
(((F))) (VI) The amount of any payments received, whether from 19
the patient or any other party; 20
(((G))) (VII) Any interest or fees; and 21
(((H))) (VIII) Whether the patient was found eligible for charity 22
care or other reductions and, if so, the amount due after all charity 23
care and other reductions have been applied to the itemized 24
statement; 25
(((ii))) (B) In the event the debtor has entered into a voluntary 26
payment agreement, the debtor shall give notice if he or she wants 27
the payment plan discontinued. If no notice is given, the payment 28
arrangement may continue. 29
(((iii))) (C) Properly executed postjudgment writs, including 30
writs of garnishment and execution, are not required to be ceased and 31
second or subsequent requests for information already provided do not 32
require the cessation of collection efforts; 33
(((c))) (iii) Report adverse information to consumer credit 34
reporting agencies or credit bureaus ((until at least one hundred 35
eighty days after the original obligation was received by the 36
licensee for collection or by assignment)). 37
(b) The legislature finds that the practices covered by this 38
subsection are matters vitally affecting the public interest for the 39
purpose of applying the consumer protection act, chapter 19.86 RCW. A 40
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violation of this subsection is not reasonable in relation to the 1
development and preservation of business and is an unfair or 2
deceptive act in trade or commerce and an unfair method of 3
competition for the purpose of applying the consumer protection act, 4
chapter 19.86 RCW. 5
(29) If the claim involves hospital debt: 6
(a) Fail to include, with the first written notice to the debtor, 7
a notice that the debtor may be eligible for charity care from the 8
hospital, together with the contact information for the hospital;9
(b) Collect or attempt to collect a claim related to hospital 10
debt during the pendency of an application for charity care 11
sponsorship or an appeal from a final determination of charity care 12
sponsorship status. However, this prohibition is only applicable if 13
the licensee has received notice of the pendency of the application 14
or appeal. 15
Sec. 4. RCW 19.182.040 and 2011 c 333 s 2 are each amended to 16
read as follows: 17
(1) Except as authorized under subsection (2) of this section, no 18
consumer reporting agency may make a consumer report containing any 19
of the following items of information: 20
(a) Bankruptcies that, from date of adjudication of the most 21
recent bankruptcy, antedate the report by more than ten years;22
(b) Suits and judgments that, from date of entry, antedate the 23
report by more than seven years or until the governing statute of 24
limitations has expired, whichever is the longer period;25
(c) Paid tax liens that, from date of payment, antedate the 26
report by more than seven years; 27
(d) Accounts placed for collection or charged to profit and loss 28
that antedate the report by more than seven years;29
(e) Records of arrest, indictment, or conviction of an adult for 30
a crime that, from date of disposition, release, or parole, antedate 31
the report by more than seven years; 32
(f) Juvenile records, as defined in RCW 13.50.010(1)(((c))) (f), 33
when the subject of the records is twenty-one years of age or older 34
at the time of the report; ((and))35
(g) Medical debt, as defined in RCW 19.16.100; and36
(h) Any other adverse item of information that antedates the 37
report by more than seven years. 38
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(2) Subsection (1)(a) through (e) and (((g))) (h) of this section 1
is not applicable in the case of a consumer report to be used in 2
connection with: 3
(a) A credit transaction involving, or that may reasonably be 4
expected to involve, a principal amount of fifty thousand dollars or 5
more; 6
(b) The underwriting of life insurance involving, or that may 7
reasonably be expected to involve, a face amount of fifty thousand 8
dollars or more; or 9
(c) The employment of an individual at an annual salary that 10
equals, or that may reasonably be expected to equal, twenty thousand 11
dollars or more. 12
Sec. 5. RCW 70.41.400 and 2006 c 60 s 2 are each amended to read 13
as follows: 14
(1) Prior to or upon discharge, a hospital must furnish each 15
patient receiving inpatient services a written statement providing a 16
list of physician groups and other professional partners that 17
commonly provide care for patients at the hospital and from whom the 18
patient may receive a bill, along with contact phone numbers for 19
those groups. The statement must prominently display a phone number 20
that a patient can call for assistance if the patient has any 21
questions about any of the bills they receive after discharge that 22
relate to their hospital stay. 23
(2)(a) Hospitals, physician groups, and other professional 24
partners may not furnish information relating to a medical debt as 25
defined in RCW 19.16.100 to a consumer credit reporting agency. A 26
medical debt is void and unenforceable if a hospital, physician 27
group, or professional partner violates this subsection (2)(a).28
(b) A hospital, physician group, or professional partner must 29
provide a statement to the patient which includes the following 30
terms: "The holder of this medical debt is prohibited from furnishing 31
any information related to this debt to a consumer credit reporting 32
agency. In addition to any other penalties allowed by law, if the 33
holder of this debt violates this provision, the debt is void and 34
unenforceable."35
(c) A violation of (a) or (b) of this subsection is deemed a 36
violation of the law governing the license of the hospital, physician 37
group, or professional partner.38
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(3) The legislature finds that the practices covered by this 1
section are matters vitally affecting the public interest for the 2
purpose of applying the consumer protection act, chapter 19.86 RCW. A 3
violation of this section is not reasonable in relation to the 4
development and preservation of business and is an unfair or 5
deceptive act in trade or commerce and an unfair method of 6
competition for the purpose of applying the consumer protection act, 7
chapter 19.86 RCW.8
(4) This section does not apply to any hospital owned or operated 9
by a health maintenance organization under chapter 48.46 RCW when 10
providing prepaid health care services to enrollees of the health 11
maintenance organization or any of its wholly owned subsidiary 12
carriers. 13
Sec. 6. RCW 70.54.005 and 1989 1st ex.s. c 9 s 250 are each 14
amended to read as follows: 15
The powers and duties of the secretary of social and health 16
services under this chapter shall be performed by the secretary of 17
health, except where specified in this chapter. 18
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