Ray Klein, Inc. on Your Credit Report: Your Options Explained

Ray Klein, Inc. has collected debts in the Pacific Northwest since 1970, with offices in Bend, Oregon and Vancouver, Washington.

In 2022, they paid $2 million to settle a class action over illegal garnishment fees. Two years later, a 2024 class action accused them of sending financially eligible patients to collections without first screening them for hospital financial assistance programs.

Both cases reflect the same underlying pattern: charging fees and pursuing collections in circumstances where consumers allege they were not legally entitled to do so.

Who Is Ray Klein?

Ray Klein, Inc., which also operates under the name Professional Credit Service, is a healthcare, government, commercial, and financial services debt collector founded in 1970. They are part of Hawes Financial Group, which also includes HealthFirst Financial, HeRO Business Services, and Hawes Technologies.

Ray Klein files lawsuits and pursues wage garnishment in Oregon and surrounding states. Oregon has a 6-year statute of limitations on written contracts. Medical debt CFPB rules apply to every healthcare account they report.

The $2 Million Garnishment Fee Settlement

In 2022, Ray Klein paid $2 million to settle a class action filed by Oregon residents Nicholas Russell and Michael McKibben. The plaintiffs alleged Ray Klein charged illegal garnishment fees that the company never actually incurred. Ray Klein denied wrongdoing but paid the settlement.

If Ray Klein has obtained a judgment against you and is pursuing wage garnishment, request a written accounting showing every fee being added to the original balance and the specific legal authority for each charge. A documented consumer complaint describes Ray Klein inflating a $501.67 original debt to $1,564.02 through added charges, which the consumer disputed as fabricated.

The 2024 St. Charles Hospital Class Action

A 2024 federal class action filed in Eugene names both Ray Klein and St. Charles Medical Center of Bend. The plaintiff, Kristine Reiger, alleged St. Charles sent her to collections without first screening her for financial assistance.

At $25,240 annual income, she was eligible for the hospital’s assistance program. Ray Klein filed a collection lawsuit against her and pressured her into making payments she paid $1,339 before the lawsuit alleged she should not have owed anything.

The lawsuit alleges “hundreds” of other St. Charles patients had similar experiences and seeks class certification. If Ray Klein is collecting a St. Charles Medical account and your income is low, request the hospital’s financial assistance policy and confirm whether you were properly screened before the account was referred to Ray Klein.

Collecting After the Hospital Stopped Using Them

A December 2024 consumer report describes Ray Klein issuing a court appearance notice for a St. Charles Medical debt. When the consumer called St. Charles billing, the hospital told her they stopped using Professional Credit Service in 2023. Ray Klein was pursuing litigation on behalf of a client that had already ended the relationship.

If Ray Klein is pursuing you on a hospital or provider account, contact the original provider directly to confirm the account was validly referred and that Ray Klein still has authority to collect.

Judgments Obtained Without Notice

A documented consumer complaint describes Ray Klein obtaining a court judgment against a consumer who stated they were never notified of the debt by the original hospital or by Ray Klein. Ray Klein had the wrong phone number but the correct address. Court papers claimed Ray Klein called and sent letters the consumer never received.

If a Ray Klein judgment appears on your credit report or in public records and you were not notified before it was entered, consult an Oregon consumer attorney about challenging the judgment on procedural grounds.

Third-Party Mail and Finance Charges on Someone Else’s Debt

A documented CFPB complaint describes Ray Klein continuing to send collection letters for a consumer’s ex-husband to the consumer’s address after being repeatedly told the ex-husband no longer lived there. Ray Klein then added $100 in finance charges to the consumer’s own separate debt and eventually referred the account to an attorney.

If Ray Klein is contacting you about a debt belonging to someone else at your address, document every communication and send a written notice by certified mail that the person does not reside there.

Medical Debt Reporting Rules Apply

Ray Klein collects heavily for healthcare providers. Medical debts under $500 cannot appear on any consumer credit report, and any medical debt must wait one full year past the date of first delinquency before being reported.

The 2024 class action also highlights that patients eligible for hospital financial assistance should not have their unpaid balances referred to collections at all under some hospital charity care policies.

What to Do Before Paying or Responding

Before paying any Ray Klein claim, confirm the original provider still has an active collection relationship with Ray Klein. For hospital accounts, request the provider’s financial assistance policy and confirm you were screened before referral. For any garnishment, request an itemized accounting of every fee added to the original balance.

Oregon residents can file complaints with the Oregon Attorney General’s Consumer Protection Division at (503) 378-4140 in addition to the CFPB.

How to Contact Ray Klein

• Bend address: Ray Klein, Inc. / Professional Credit Service, 435 NE 4th Street, Bend, OR 97701
• Vancouver address: 12204 SE Mill Plain Boulevard, Suite 101, Vancouver, WA 98684
• Phone: (866) 581-9566 or (888) 888-1992

Bottom Line

Ray Klein paid $2 million in 2022 for illegal garnishment fees and faces a 2024 class action for collecting from financially eligible hospital patients who should have received charity care. They file lawsuits and pursue wage garnishment, and at least one consumer has documented Ray Klein pursuing a claim on behalf of a hospital that had already ended its relationship with the company.

Confirm the referring provider still works with Ray Klein before engaging. For any hospital account, request the financial assistance policy and verify you were properly screened before referral.