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Optimum Outcomes Violates Medical Debt Collection Laws

Hannah Locklear | April 23, 2024

Hannah Locklear
Editor at SoloSuit
Hannah Locklear, BA

Hannah Locklear is SoloSuit’s Marketing and Impact Manager. With an educational background in Linguistics, Spanish, and International Development from Brigham Young University, Hannah has also worked as a legal support specialist for several years.

Summary: Washington State sued Optimum Outcomes for failing to disclose crucial information in debt collection notices and violating other state collection laws. The agency must pay $10 per violation, with a grand total of $827,290. If you’ve been contacted by Optimum Outcomes, SoloSuit can help you respond, stand up for your rights, and settle the debt outside of court.

In a landmark case, the Washington State judiciary has once again stood up for the rights of consumers, particularly in the complex arena of medical debt collection. The case, State of Washington v. Providence Health & Services et al., recently concluded with significant implications for debt collection agencies and healthcare providers.

Optimum Outcomes lawsuit explained

Optimum Outcomes, Inc., is a debt collection agency hired by Providence Health & Services Washington and its affiliates to collect medical debts. The State of Washington is suing Optimum's failure to comply with state specific laws, especially in its communication with debtors.

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The court ruled in favor of consumers

Judge Sean P. O’Donnell’s ruled that Optimum Outcomes:

  • Failed to disclose vital information to consumers: Optimum issued 82,729 first written notices to debtors that failed to include mandatory disclosures under Washington State law. These disclosures are vital for consumer protection, especially for those eligible for charity care.
  • Violated state debt collection laws : Despite being a specialized debt collection agency, Optimum failed to comply with Washington's Collection Agency Act during its collection period. This lapse indicated a disregard for state-specific regulations that govern debt collection practices.
  • Failed to obtain mandatory license: The agency also failed to maintain proper debt collection licensing in the state of Washington.

The court concluded that Optimum’s actions constituted violations under both the Consumer Protection Act and the Collection Agency Act. As a result, Optimum faces 82,729 violations under the Consumer Protection Act.

The judge imposed a civil penalty of $10 per violation, totaling $827,290. This amount is notably above what Optimum earned in commissions, signaling a clear message to the industry about the importance of adhering to state laws and regulations.

Optimum Outcomes’ violations could change the debt collection industry

This case is a watershed moment for consumer rights, especially in the realm of medical debt collection. It underscores the need for debt collection agencies to thoroughly understand and comply with state-specific laws and regulations. Moreover, it highlights the complexity of medical debt, an area often confusing and overwhelming for consumers.

Furthermore, it emphasizes the Washington state's commitment to enforcing laws designed to safeguard consumers, especially in vulnerable situations like medical debt. This case will likely serve as a precedent moving forward, influencing how debt collection agencies operate not only in Washington but potentially across the United States.

What is Optimum Outcomes?

Optimum Outcomes is a debt collection agency that specializes in medical debt. The Optimum Outcomes debt collection phone number and other contact information is listed below:

  • Phone number: (866) 268-4255
  • Address: PO Box 660943, Dallas, TX 75266
  • Alternate phone numbers: (919) 755-3900 and (877) 795-9819

Is Optimum Outcomes legit?

Yes, Optimum Outcomes is a legit debt collector, but it is not accredited by the Better Business Bureau (BBB) and has an F rating on its BBB profile.

If you’ve been contacted by an Optimum Outcomes debt collector, you should ask them to validate your debt. Oftentimes, debt collectors do not have the proper documentation needed to collect a debt, so requesting debt validation can help you stop collection calls. If the debt is verified, you can pay it off on the company’s online payment portal.

Optimum Outcomes reviews

Out of dozens of Google reviews, Optimum Outcome earns itself a rating of 1.3 out of 5 stars. The Consumer Financial Protection Bureau reports nearly 700 complaints against Optimum Outcomes. The complaints mention the following issues, many of which are considered violations of federal debt collection laws:

  • Optimum Outcomes tries to collect debt that is not owed.
  • Optimum Outcomes fails to provide written verification of alleged debts.
  • Optimum Outcomes calls frequently and at inappropriate hours.
  • Optimum Outcomes reports inaccurate information to the credit reporting bureaus.
  • Optimum Outcomes makes false statements or representations about debt.

You have consumer rights that can protect you from unfair treatment by Optimum Outcomes debt collectors. Learn more about what debt collectors cannot do to be prepared to defend yourself should the need arise.

Resolve debt with Optimum Outcomes

On the off chance that your debt is valid, you can resolve it by paying in full or settling. If you’ve been sued for medical debt, be sure to file an Answer to the debt lawsuit to avoid default judgment. After you’ve responded to the case, consider reaching out to negotiate debt settlement.

We wanted to learn more about how to negotiate with debt collectors and creditors, so we asked a consumer rights attorney for tips and tricks. Here’s what we learned:

To effectively resolve debt, especially when facing a lawsuit, consider these strategies:

  • Paint a picture of your financial hardship to the creditors or their lawyers.
  • Show proof of your limited ability to pay, like being on Social Security, facing multiple debts, or having wage garnishments.
  • Make a realistic offer, considering they will likely counteroffer.
  • For junk debt buyers, settlements of 10-35% of the total debt are typical, while original creditors may accept 50-75%.
  • If you propose a payment plan, ensure it's realistic for your budget.
  • Be truthful about your financial situation, as creditors often have detailed information about you.
  • Avoid threatening bankruptcy if you don't mean it, as this empty threat is often ineffective.

To learn more, check out the video below for the full interview with debt lawyer, John Skiba:

SoloSettle makes debt settlement easier

Starting the debt settlement process can be challenging. Taking that first step to reach out and negotiate with creditors and collectors is often the hardest part. SoloSettle takes the pressure off debtors by helping them start their settlement journey.

SoloSettle is a tech-based approach to debt settlement. The SoloSettle software helps consumers send and receive settlement offers until they reach an agreement with their creditor or the debt collector.

If you’ve been sued by Optimum Outcomes, consider using SoloSettle to resolve the debt once and for all.

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