A California-based health-care debt collection agency is the target of a proposed class action alleging its failures to properly safeguard, encrypt, and destroy personal identifiable information resulted in a data breach affecting almost half a million people.

The private information of at least 498,000 people was taken from Designed Receivable Solutions Inc. in the cyberattack, according to the complaintfiled Tuesday in the US District Court for the Central District of California. Medical…