Preston v. SB&C, Ltd.

Summary

The Washington Supreme Court answers a certified question from the Western District of Washington and holds that RCW 70.170.060(8)(a) requires collection agencies collecting hospital debt to provide notice of potential charity care. The court concludes that the statutory notice obligation applies to collection agencies as assignees and that failure to provide notice may support a non-per-se Washington Consumer Protection Act claim. A dissent would have limited the statute to communications made by hospitals.

Holdings

1. Yes. The requirements of RCW 70.170.060(8)(a) apply to a collection agency collecting on hospital debt because the statute's reference to 'other written communications concerning billing' encompasses communications by an assignee concerning collection of a hospital bill.
2. A collection agency's failure to provide charity-care notice when collecting hospital debt may constitute an unfair or deceptive act or practice under the CPA, even if the conduct is not a per se violation of the CAA or another statute.
3. The court declined to reach the federal FDCPA issue because it was outside the certified question and remained within the province of the federal district court.

Questions Presented

1. Whether RCW 70.170.060(8)(a), requiring hospital billing statements and other written communications concerning billing or collection of a hospital bill to include charity-care notice, applies to a collection agency collecting an assigned hospital debt.
2. Whether the policy underlying the charity-care act and general assignment principles support applying the notice obligation to a collection agency assignee.
3. Whether failure to provide charity-care notice may constitute an unfair or deceptive practice under the Washington Consumer Protection Act even absent a per se violation of the Collection Agency Act or charity-care act.

Disposition

other