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Always Read the Fine Print: Summary of Collection Laws
As the law varies state by state, it’s crucially important that all of our clients understand what is and isn’t legal when it comes to commercial collections.
While some laws are applicable nationwide, the vast majority of legislation concerning collections is enforceable at state level. To ensure that our team is working in a 100% legally complaint manner, regardless of the state they’re operating an account in, we keep this list up to date.
Notes for all states:
Bad check Law
Alternately, UCC article 3 section 806 provides recovery of all reasonable costs & expenses.
Federal Garnishment Exemption
Federal Law exempts from garnishment 75% of disposable earnings per week, or an amount to 30 x federal minimum hourly wage, whichever is greater. Some states laws still on the books are listed below, but where federal law provides larger exemption, it supersedes the state law.
*Denotes States having community property laws.
States with Community Property laws make it more difficult to attach assets, and therefore to recover funds. These are not comprehensive statutes. We will advise on each case what we believe is the best chance of recovery.
Disclaimer:
This Summary is provided for general information purposes only, and is not intended nor to be construed as legal advice for clients.
ALABAMA
INTEREST RATE – Legal: 8% if agreement in writing, otherwise 6% – Judgment 12% STATUTE OF LIMITATIONS (IN YEARS) – Open Acct: 3 – Written contract: 6 – Domestic Judgment: 20 – Foreign Judgment: 20 BAD CHECK LAWS (CIVIL PENALTY) – Greater of $10 or actual bank charges GENERAL GARNISHMENT EXEMPTIONS – Federal COLLECTION AGENCY BOND & LICENSE – Bond: No – License: Yes – Fee: $38 if the Population is under 20,000 or $150 if the Population is over 20,000
ALASKA
INTEREST RATE – Legal: 10.5% absent contract, 5% over w/ contract – Judgment: Federal Reserve District discount rate +3%, or contract rate STATUTE OF LIMITATIONS (IN YEARS) – Open Account: 3 – Written Contract: 3 – Domestic Judgment: 10 – Foreign Judgment: 10
BAD CHECK LAWS (CIVIL PENALTY) – $100 or triple amount of check, whichever is greater, maximum $1,000 GENERAL GARNISHMENT EXEMPTIONS – $192.50/wk., or $302.50/ wk. if earnings are sole household support. COLLECTION AGENCY BOND & LICENSE – Bond: $5,000 License: Yes – Fee: $100- Application $20 – non-resident double
* ARIZONA
INTEREST RATE – Legal: 10%; any rate may be agreed & contracted – Judgment: 10% STATUTE OF LIMITATIONS (IN YEARS) – Open Acct: 3 – Written Contract: 6 – Domestic Judgment: 4 – Foreign Judgment: 4 or period in foreign state if less BAD CHECK LAWS (CIVIL PENALTY) – Twice the amount of the check or $50, whichever is greater, costs of suit, reasonable attorneys’ fees. GENERAL GARNISHMENT EXEMPTIONS – See federal law. Judge may limit amount available for garnishment of earnings to 15% of take home pay. $150 exemption for garnishment of bank accounts of individuals only. COLLECTION AGENCY BOND & LICENSE – Bond: $10,000-$35,000 – License: Yes – Fee: $1500 Application Fee $600 Renewal
ARKANSAS
INTEREST RATE – Legal: 5% above Federal Reserve discount rate. Consumer rate is capped at 17%. – Judgment: Rate of interest for contracts in which no rate of interest is agreed upon shall be 6% per annum.
STATUTE OF LIMITATIONS (IN YEARS) – Open Acct: 3 – Written Contract: 5 – Domestic Judgment: 10 (renewable) – Foreign Judgment: 10 (renewable)
BAD CHECK LAWS (CIVIL PENALTY) – Amount due, service charge not to exceed $10. GENERAL GARNISHMENT EXEMPTIONS – See fed. law. $200/wk. single person, $500/wk. head of household if greater than federal exemption. COLLECTION AGENCY BOND & LICENSE – Bond: $5,000-$25,000 – License: Yes – Fee: $125 – $15 each collector
* CALIFORNIA
INTEREST RATE – Legal: 7% or contract rate. Contract rate shall not exceed 12% – Judgment: Set by legislature at not over 10% rate; in absence of setting of such rate, rate of interest is 7%. STATUTE OF LIMITATIONS (IN YEARS) – Open Acct: 4 – Written Contract: 4 – Domestic Judgment: 10 – Foreign Judgment: 10
BAD CHECK LAWS (CIVIL PENALTY) – Amount due, treble damages, minimum $100, maximum $1,500 per check GENERAL GARNISHMENT EXEMPTIONS – See fed. law, except 100% earnings necessary for support of debtor or family unless used for personal services. COLLECTION AGENCY BOND & LICENSE – No license or bond required
COLORADO
INTEREST RATE – Legal: 8% if there is no agreement; maximum rate that may be contracted for is 45%; interest on consumer loan may not exceed 12% unless made by supervised lender – Judgment: 8% if none specified in contract; if contract rate is variable, then at rate on day of judgment. STATUTE OF LIMITATIONS (IN YEARS) – Open Acct: 6 – Written Contract: 6 – Domestic Judgment: 6 – Foreign Judgment: 6
BAD CHECK LAWS (CIVIL PENALTY) – Treble the amount of such check and in no case less than $100, including reasonable fees. GENERAL GARNISHMENT EXEMPTIONS – Greater of 75% of disposable earnings per work wk., or amount equal to 30 x fed. min. hourly wage.
COLLECTION AGENCY BOND & LICENSE – Bond: $12,000 – 20,000 – License: Yes – Fee: $250 investigation, $300 original license, $100 renewal, $35/collector, $25/collection manager
CONNECTICUT
INTEREST RATE – Legal: 12% – Judgment: Absent agreement to contrary, 8% STATUTE OF LIMITATIONS (IN YEARS) – Open Acct: 6 – Written Contract: 3 – Domestic Judgment: 20 – Foreign Judgment: no provision BAD CHECK LAWS (CIVIL PENALTY) – Amount of check plus lesser of: if no bank account – $750 or amount of check; or if insufficient funds – $400 or amount of check. GENERAL GARNISHMENT EXEMPTIONS – The greater of 75% of disposable earnings for the wk., or 40 x the fed. min. hourly wage. COLLECTION AGENCY BOND & LICENSE – Bond: $5000 – License: Yes – $400, $100 investigation, $250 renewal
DELAWARE
INTEREST RATE – Legal: 5% over Federal Reserve discount rate; same maximum rate even if agreed upon in writing – Judgment: 5% over Federal Reserve discount rate; same maximum rate even if agreed upon in writing STATUTE OF LIMITATIONS (IN YEARS) – Open Acct.: 3 – Written Contract: 3 – Domestic Judgment: 5 – Foreign Judgment: No provision
BAD CHECK LAWS (CIVIL PENALTY) – Amount due, costs of suit, protest fees. GENERAL GARNISHMENT EXEMPTIONS – 85% of wages COLLECTION AGENCY BOND & LICENSE – Bond: No – License: Merc. License – Fee: $50 Yearly
DISTRICT OF COLUMBIA
INTEREST RATE – Legal: 6% (Contract in writing: up to 24%) – Judgment 70% of the rate set by the Secretary of Treasury STATUTE OF LIMITATIONS (IN YEARS) – Open Acct: 3 – Written Contract: 3 – Domestic Judgment: 12 – Foreign Judgment: no provision
BAD CHECK LAWS (CIVIL PENALTY) – Amount Due, protest fees GENERAL GARNISHMENT EXEMPTIONS – See federal law, except 90% of 1st $200 gross wages per month, 80% on excess of $200 & under $500. COLLECTION AGENCY BOND & LICENSE – Bond: No – License: No – Fee: No
FLORIDA
INTEREST RATE – Legal: Determined by comptroller of state by averaging the discount rate of the Federal Reserve Bank of New York for the preceding year and adding 500 basis points to the averaged federal discount rate – Judgment: 6.33% (as of 1/1/19; updated quarterly) STATUTE OF LIMITATIONS (IN YEARS) – Open Acct: 4 – Written Contract: 5 – Domestic Judgment: 20 – Foreign Judgment: 7 BAD CHECK LAWS (CIVIL PENALTY) – Initially face value of check plus $10 or 5% of value, whichever is greater. If suit required, after 30 day demand, treble amount in addition to amount owed, bank and court costs and reasonable attorneys fees. GENERAL GARNISHMENT EXEMPTIONS – See federal law, except $500 per week head of household. COLLECTION AGENCY BOND & LICENSE – Bond: Yes – $50,000 (Commercial) – License: Yes – Fee: Yes – $200 – Registration / $50 – Investigation $200 – Renewal
GEORGIA
INTEREST RATE – Legal: 7% per year when rate not specified; higher than 7% must be in writing; maximum 16% where principal is $3000 or less; no limit on rate if loan is between $3000 and $250,000 and must be in simple interest in written contract – Judgment: Prime rate determined by Federal Reserve System plus 3% STATUTE OF LIMITATIONS (IN YEARS) – Open Acct: 4 – Written Contract: 6 – Domestic Judgment: 7 – Foreign Judgment: 5
BAD CHECK LAWS (CIVIL PENALTY) – After 30 day written demand double damages up to $500 and service charge not to exceed $15. GENERAL GARNISHMENT EXEMPTIONS – See federal law. COLLECTION AGENCY BOND & LICENSE – Bond: No – License: No – Fee: No
HAWAII
INTEREST RATE – Legal: 10% – Judgment: 10% STATUTE OF LIMITATIONS (IN YEARS) – Open Acct: 6 – Written Contract: 6 – Domestic Judgment: 10 – Foreign Judgment: 6 BAD CHECK LAWS (CIVIL PENALTY) – Amount due, costs of suit, protest fees. GENERAL GARNISHMENT EXEMPTIONS – 95% of 1st $100, 90% of next $100 and 80% of wages in excess of $200 per month, or equivalent per week COLLECTION AGENCY BOND & LICENSE – Bond: $25,000/$15,000 each branch – License: Yes – Fee: $25 Application – $40 Registration
IDAHO
INTEREST RATE – Legal: 12% – Judgment: 5.125% plus annual average yield on U.S. Treasury securities as determined by Idaho state treasurer STATUTE OF LIMITATIONS (IN YEARS) – Open Acct: 4 – Written Contract: 5 – Domestic Judgment: 11 – Foreign Judgment: 6
BAD CHECK LAWS (CIVIL PENALTY) – $100 or triple amount of check, whichever is greater, maximum $500 GENERAL GARNISHMENT EXEMPTIONS – Greater of 75% of disposable earnings for week, or 30 x federal minimum hourly wage. COLLECTION AGENCY BOND & LICENSE – Bond: $2,000 initial bond; up to $100,000 ren., depending on net
collns. +$2,000 to indemnify state costs – License: Yes – Fee: $100 / $100 foreign / $50 renewal / $20 application / $20 per solicitor/collector
ILLINOIS
INTEREST RATE – Legal: 5% per annum (Without written agreement) – Contract: 9% per annum – Judgment: 9% or 6% against government entities – Usury cap: 9% STATUTE OF LIMITATIONS (IN YEARS) – Open Acct: 5 – Written Contract: 10 – Domestic Judgment: 20 – Foreign Judgment: 5
BAD CHECK LAWS (CIVIL PENALTY) – $100 or triple amount of check, whichever is greater, maximum $500 plus attorney’s fees and court costs GENERAL GARNISHMENT EXEMPTIONS – Greater of 85% of gross wages weekly, or 45 x federal minimum hourly wage.
COLLECTION AGENCY BOND & LICENSE – Bond: $25,000 – License: Yes – Fee: $75 – Original $60 – Renewal
INDIANA
INTEREST RATE – Legal: 21% for unsupervised consumer loan – Judgment: 8% STATUTE OF LIMITATIONS (IN YEARS) – Open Acct: 6 – Written Contract: 6 – Domestic Judgment: 20 – Foreign Judgment: 20 BAD CHECK LAWS (CIVIL PENALTY) – Triple check amount up to $500 over check amount, plus attorney fees and interest up to 18% per annum. GENERAL WAGE GARNISHMENT EXEMPTIONS – See federal law. COLLECTION AGENCY BOND & LICENSE – Bond: $5000 – License: Yes – Fee: $50 plus $5 per unlicensed employee, $15 branch office
IOWA
INTEREST RATE – Legal: 5%, unless another rate is agreed upon in writing. In that case, the interest can’t exceed the official usury rate as set by the Iowa Superintendent of Banking. – Judgment: 10% unless a different rate was stated in the contract which the judgment was based on, that interest rate can’t exceed the max that was permitted at the time.
STATUTE OF LIMITATIONS (IN YEARS) – Open Acct: 5 – Written Contract: 10 – Domestic Judgment: 20 – Foreign Judgment: 20 BAD CHECK LAWS (CIVIL PENALTY) – Triple the face amount of check, not to exceed amount of check plus $500.
GENERAL GARNISHMENT EXEMPTIONS – See federal law. For consumer credit transactions, 75% of disposable earnings for week or 30x federal minimum hourly wage, whichever is greater. Consumer may apply to court for greater exemption. COLLECTION AGENCY BOND & LICENSE – Bond: No – License: If collections exceed $25,000, must notify state and pay $10 fee
KANSAS
INTEREST RATE – Legal: 10%, when no other rate is agreed upon. The maximum rate at which parties can contract, which is higher, is 15% per year, unless otherwise specifically authorized to be higher by law. – Judgment: 4% above the federal discount rate (the charge on loans to banks by the Federal Reserve Bank) as of the July 1st preceding the judgment. The Kansas Secretary of State publishes the judgment rate on its website. STATUTE OF LIMITATIONS (IN YEARS) – Open Acct: 3 – Written Contract: 5 – Domestic Judgment: 5 (renewable) – Foreign Judgment: 5
BAD CHECK LAWS (CIVIL PENALTY) – Triple the face amount of check, not to exceed the check amount by $500 or $100 whichever is greater. GENERAL GARNISHMENT EXEMPTIONS – See federal law. COLLECTION AGENCY BOND & LICENSE – Bond: No – License: No – Fee: No
KENTUCKY
INTEREST RATE – Legal: 8% unless there’s an agreement otherwise. Even then, parties can’t agree to a rate more than 4% above the discount rate of the Federal Reserve Bank or 19%, whichever is less, for a principal amount of $15,000 or less, or any rate for a loan of $15,000 or more as provided by the contract. – Judgment: 12% or contract rate
STATUTE OF LIMITATIONS (IN YEARS) – Open Acct: 5 – Written Contract: 15 – Domestic Judgment: 15 (renewable) – Foreign Judgment: 15 (renewable) BAD CHECK LAWS (CIVIL PENALTY) – No civil penalty GENERAL GARNISHMENT EXEMPTIONS – See federal law.
COLLECTION AGENCY BOND & LICENSE – Bond: No – License: No – Fee: No
LOUISIANA
INTEREST RATE – Legal: 12% – Judgment: 3.25 above Federal Reserve discount rate for that year STATUTE OF LIMITATIONS (IN YEARS) – Open Acct: 3 – Written Contract: 10 – Domestic Judgment: 10 – Foreign Judgment: 10 BAD CHECK LAWS (CIVIL PENALTY) – Minimum of $100, or twice the amount of the check plus attorney’s fees and court costs GENERAL GARNISHMENT EXEMPTIONS – See federal law. COLLECTION AGENCY BOND & LICENSE – Bond: Yes – $10,000 – License: Yes – Fee: $200 initial / $200 renewal / up to $100 branch office
MAINE
INTEREST RATE – Legal: 6% unless otherwise agreed – Judgment: For judgments below $30,000, the interest rate is 15 percent. For judgments above $30,000, the interest rate is set at the 52-week average discount rate for T-bills plus an additional 4 percent. STATUTE OF LIMITATIONS (IN YEARS) – Open Acct: 6 – Written Contract: 6 – Domestic Judgment: 20 – Foreign Judgment: 20
BAD CHECK LAWS (CIVIL PENALTY) – Amount of check, plus court costs, service costs, collection costs and processing charges if statutory notice given GENERAL GARNISHMENT EXEMPTIONS – Greater of 75% disposable earnings for week, or disposable earnings over 40x federal minimum hourly wage. Wages due for wife’s or child’s personal service. In trustee process, 100%.
COLLECTION AGENCY BOND & LICENSE – Bond: $20,000-$50,000 – License: Yes – Fee: $400 (2 years)
MARYLAND
INTEREST RATE – Legal: 6% ; up to 8% in written agreement – Judgment: 10%; money judgment may carry contract rate until originally scheduled maturity date STATUTE OF LIMITATIONS (IN YEARS) – Open Acct: 3 – Written Contract: 3 – Domestic Judgment: 12 – Foreign Judgment: 12
BAD CHECK LAWS (CIVIL PENALTY) – After 30 day written notice, amount due, $15 fee, twice check amount up to $1,000. GENERAL GARNISHMENT EXEMPTIONS – Greater of 75% or amount equal to $145 x no. of wks in which wages due were earned, except in Carolina, Worcester, Kent and Queen Anne’s Counties, see federal law. COLLECTION AGENCY BOND & LICENSE – Bond: $5,000 – License: Yes – Fee: $200 each location
MASSACHUSETTS
INTEREST RATE – Legal: 6% – Judgment: 12% – Contract: 12% STATUTE OF LIMITATIONS (IN YEARS) – Open Acct 6 (UCC 4)- Contract: 6 (UCC 4) – Domestic Judgment: 20 – Foreign Judgment: 20 BAD CHECK
GENERAL GARNISHMENT EXEMPTIONS – See federal law. COLLECTION AGENCY BOND & LICENSE – Bond: $10,000 -$25,000 – License: Yes – Fee: $500
MICHIGAN
INTEREST RATE – Legal: 5% (7% with written agreement) – Judgment: Rate of interest equal to 1% plus the average interest paid at auctions of 5-yr. U.S. treasury notes during the 6 months preceding July 1 and January 1 STATUTE OF LIMITATION (IN YEARS) – Open Acct: 6 – Written Contract: 6 – Domestic Judgment: 10 (renewable) – Foreign Judgment: 10 BAD CHECK LAWS (CIVIL PENALTY) – Face amount of check plus twice the amount of check or $100 per check, whichever is greater, plus court costs of up to $250. GENERAL GARNISHMENT EXEMPTIONS – See federal law. COLLECTION AGENCY BOND & LICENSE (RETAIL ONLY) – Bond: $5,000 – $50,000 – License: Yes – Fee: $225 – Renewal: $125 – Manager (non-owner): $125 – Manager (owner): $50
MINNESOTA
INTEREST RATE – Legal: 6%; written contract up to 8* – Judgment: 4% (Changes Yearly) STATUTE OF LIMITATIONS (IN YEARS) – Open Acct: 6 – Written Contract: 6 (UCC 4) – Domestic Judgment: 10 (renewable) – Foreign Judgment: 10 (renewable) BAD CHECK LAWS (CIVIL PENALTY) – Amount due, $100 penalty, interest (at judgment rate), reasonable attorneys’ fees if amount of check over $1,250, $15 service charge. GENERAL GARNISHMENT EXEMPTIONS – Greater of 75% disposable earnings or 40 x fed. min. hourly wage. For debtor who has been on relief, 100% for 1st six months after return to private employment. COLLECTION AGENCY BOND & LICENSE – Bond: $5,000-$20,000- License: Yes – Fee: $500 Investigation: $500 Renewal: $400 Per collector: $10
MISSISSIPPI
INTEREST RATE – Legal: 8% (written contract: 10% or 5% above discount rate) – Judgment: Judgments at contract rate if contract exists; otherwise at per annum rate set by judge STATUTE OF LIMITATIONS (IN YEARS) – Open Acct: 3 – Written Contract: 3 (UCC 4) – Domestic Judgment: 7 – Foreign Judgment: 7 (3 if MS resident)
BAD CHECK LAWS (CIVIL PENALTY) – Amount due plus additional damages of 100% on checks up to $25,000, 50% (not to exceed $50 or fall below $25) on checks on $25 to $200, and 25% on checks over $200. GENERAL GARNISHMENT EXEMPTIONS – After 30-day grace period, see fed. law. Exemptions not applicable to taxes/pensions.
COLLECTION AGENCY BOND & LICENSE – Bond: No – License: Certificate of Authority – Fee:$15-$50
MISSOURI
INTEREST RATE – Legal: 9% (contract: 10% except when market rate is higher) – Judgment: 9% or higher rate lawfully stipulated STATUTE OF LIMITATIONS (IN YEARS) – Open Acct: 5 – Written Contract: 10 – Domestic Judgment: 10 – Foreign Judgment: 10
BAD CHECK LAWS (CIVIL PENALTY) – Greater of treble face amount owed or $100. Damages should not exceed $500. GENERAL GARNISHMENT EXEMPTIONS – See federal law, except 90% of week’s net pay, head of household. COLLECTION AGENCY BOND & LICENSE – Bond: No – License: No – Fee: No
MONTANA
INTEREST RATE – Legal: 15% by written agreement or 6% above the Federal Reserve’s prime rate – Judgment: 10% or contract rate STATUTE OF LIMITATIONS (IN YEARS) – Open Account: 5 – Written Contract: 8 – Domestic Judgment: 10 – Foreign Judgment: 10
BAD CHECK LAWS (CIVIL PENALTY) – Service charge plus the greater of $100.00, or three times the amount of the check, but not to exceeed the value of the check by more than $500.00. GENERAL GARNISHMENT EXEMPTIONS – Maximum subject to garnishment is the lesser of the amount by which his disposal earnings exceed 30% of fed. min. wage, or 25% disposable earnings.
COLLECTION AGENCY BOND & LICENSE – Bond: No – License: No – Fee: No
NEBRASKA
INTEREST RATE – Legal: 6% (written contract 16%) – Judgment: 1% above bond equivalent yield; rate of contract; or specifically provided by law STATUTE OF LIMITATIONS (IN YEARS) – Open Acct: 4 – Written Contract: 5 – Domestic Judgment: 5 (renewable) – Foreign Judgment: 5
BAD CHECK LAWS (CIVIL PENALTY) – Amount due, costs, protest fees. GENERAL GARNISHMENT EXEMPTIONS – Greater of 75% disposable earnings (85% if head of household) or 30 x fed. min. hourly wage. COLLECTION AGENCY BOND & LICENSE – Bond: $5,000 for less than 5 lic. solic.; $10,000 for 5 to 15; $15,000 for 16+ – License: Yes – Fee: $200 ($200 invest. $75 ren. $50 br. $35 br. ren. $6 solic)
NEVADA
INTEREST RATE – Legal: No limit for what parties may contract; otherwise prime rate of Nevada’s largest bank plus 2% – Judgment: Contract rate or prime rate at largest bank in Nevada plus 2% STATUTE OF LIMITATIONS (IN YEARS) – Open Acct: 4 – Written Contract: 6 – Domestic Judgment: 6 – Foreign Judgment: 6
BAD CHECK LAWS (CIVIL PENALTY) – Amount due, protest fees treble amount of check but not less than $100 nor more than $500. GENERAL GARNISHMENT EXEMPTIONS – See federal law. COLLECTION AGENCY BOND & LICENSE – Bond: $25,000-$50,000 – License: Yes – Fee: $250 app. &
survey $100-300 orig. $200. ren. $125 br. $100 ren. br.
NEW HAMPSHIRE
INTEREST RATE – Legal: 10% unless differently stipulated in writing – Judgment: 4.3% (changes annually) STATUTE OF LIMITATIONS (IN YEARS) – Open Acct: 3 – Written Contract: 3 – Domestic Judgment: 20 – Foreign Judgment: 20 BAD CHECK LAWS (CIVIL PENALTY) – Amount due, interest, court costs, service costs, and collection costs. If judgment obtained and not paid, $10 per business day up to $500, plus reasonable attorney’s fees. GENERAL GARNISHMENT EXEMPTIONS – 50 x fed. min. hourly wage. COLLECTION AGENCY BOND & LICENSE: Bond: No – License: No – Fee: No
NEW JERSEY
INTEREST RATE – Legal: 6% (contract: 16%) – Judgment: 3.5% (changes yearly) STATUTE OF LIMITATIONS (IN YEARS) – Open Acct: 6 – Written Contract: 6 – Domestic Judgment: 20 – Foreign Judgment: 20 or period in foreign state if less BAD CHECK LAWS (CIVIL PENALTY) – Face amount of the check, attorney fees, court costs, costs of mailing a demand for payment, and damages in an amount equal to $100.00 or triple the amount of the check, whichever is greater, but not to exceed $500.00. GENERAL GARNISHMENT EXEMPTIONS – Min. $48 per wk. 90% if earnings are $7,500/yr. or less, court may reduce exemption if earnings are greater. Subject to changes under cost of living index. COLLECTION AGENCY BOND & LICENSE – Bond: $5,000 Surety only – License: Certificate of Authority – Fee: $25 filing fee
NEW MEXICO
INTEREST RATE – Legal: 15% in absence of contract fixed rate – Judgment: 8% or contract rate STATUTE OF LIMITATIONS (IN YEARS) – Open Acct: 4 – Written Contract: 6 – Domestic Judgment: 14 – Foreign Judgment: 14 BAD CHECK LAWS (CIVIL PENALTY) – Amount due, costs of suit, protest fees. GENERAL GARNISHMENT EXEMPTIONS – Greater of 75% or amount ea. wk. equal to 40 x fed. min. hourly wage. COLLECTION AGENCY BOND & LICENSE – Bond: $5,000-$25,000 – License: Yes – Fee: $200 orig. $200 br. $200 ren
NEW YORK
INTEREST RATE – Legal: 16% – Judgment: 9% STATUTE OF LIMITATIONS (IN YEARS) – Open Acct: 6 – Written Contract: 6 – Domestic Judgment: 20 Foreign Judgment: 20 BAD CHECK LAWS (CIVIL PENALTY) – Face value of check, plus two times amount of check up to $750. GENERAL GARNISHMENT EXEMPTIONS – 90% of earnings for services within 60 days before income execution and any time after. Court may reduce as relates to federal garnishment exemptions. COLLECTION AGENCY BOND & LICENSE – Bond: NYC:No Buffalo: $5,000 – License: Yes – Fee: $75 Determined by admin.
NORTH CAROLINA
INTEREST RATE – Legal: 8% or contract rate – Judgment: 8% or contract rate STATUTE OF LIMITATIONS (IN YEARS) – Open Acct: 3 – Written Contract: 3 (UCC 4) – Domestic Judgment: 10 – Foreign Judgment: 10 BAD CHECK LAWS (CIVIL PENALTY) – Thirty days after written demand, lesser of $500 or treble amount owing on check, but not less than $100. GENERAL GARNISHMENT EXEMPTIONS – 100% of last 60 days’ earnings for family support. Garnishment not available as remedy in collection of commercial accounts. COLLECTION AGENCY BOND & LICENSE – Bond: $5,000-$50,000 – License: Yes – Fee: $500
NORTH DAKOTA
INTEREST RATE – Legal: 6%; if contract in writing, up to 5.5% higher than average interest on treasury bills, maximum 7% – Judgment: Contract rate, otherwise 12% STATUTE OF LIMITATIONS (IN YEARS) – Open Acct: 6 – Written Contract: 6 – Domestic Judgment: 10 (renewable) – Foreign Judgment: 10
BAD CHECK LAWS (CIVIL PENALTY) – Amount due, collection fees not to exceed $10, and $100 or treble amount of check, whichever is less. GENERAL GARNISHMENT EXEMPTIONS – 75% disposable earnings for work wk., or amt. equal to 40 x fed. min. hourly wage, whichever is greater, plus $20 ea. dependent in household.
COLLECTION AGENCY BOND & LICENSE – Bond: $20,000 – License: Yes – Fee: $300 invest. $200 lic.
OHIO
INTEREST RATE – Legal: 8% – Judgment: Contract rate, otherwise 10% STATUTE OF LIMITATIONS (IN YEARS) – Open Acct: 6 – Written Contract: 8 – Domestic Judgment: 10 – Foreign Judgment: 21 BAD CHECK LAWS (CIVIL PENALTY) – $200 or three times amount of check, whichever is greater, and attorney fees, no maximum. GENERAL GARNISHMENT EXEMPTIONS – Of earnings for preceding 30 days, 30 x fed. min hourly wage if paid weekly; 60 x if paid bi-weekly; 65 x if paid semi-monthly; 130 x if paid monthly, or 75% of disposable earnings. See fed. law. COLLECTION AGENCY BOND & LICENSE – Bond: No – License: No – Fee: No
OKLAHOMA
INTEREST RATE – Legal: 6%, or by contract – Judgment: At contract rate or 4 percentage points above average treasury bill rate for preceding year, not to exceed 10% in action against state/political subdivision
STATUTE OF LIMITATIONS (IN YEARS) – Open Acct: 3 – Written Contract: 5 – Domestic Judgment: 5 (renewable) – Foreign Judgment: 5
BAD CHECK LAWS (CIVIL PENALTY) – n/a GENERAL GARNISHMENT EXEMPTIONS – 75% of earnings during 90 days before execution, 100% of earnings for personal services prior to trial court judgment. Can extend to 50% to satisfy child support order. COLLECTION AGENCY BOND & LICENSE – Bond: No – License: No – Fee: No
OREGON
INTEREST RATE – Legal: 9% or by contract – Judgment: 9% or contract rate STATUTE OF LIMITATIONS (IN YEARS) – Open Acct: 6 – Written Contract: 6 – Domestic Judgment: 10 – Foreign Judgment: 10 BAD CHECK LAWS (CIVIL PENALTY) – $100 or triple amount of check not to exceed $500, plus reasonable attorney’s fees GENERAL GARNISHMENT EXEMPTIONS – 75% of disposable earnings per wk., or $170 of disposable earnings per wk., whichever is greater. COLLECTION AGENCY BOND & LICENSE – Bond: $10,000 (or irrevocable letters of credit) – License: Registration – Fee: $350 orig. $75 ren.
PENNSYLVANIA
INTEREST RATE – Legal: 6% – Judgment: Interest at lawful rate STATUTE OF LIMITATIONS (IN YEARS) – Open Acct: 4 – Written Contract: 4 – Domestic Judgment: 5 – Foreign Judgment: 5 BAD CHECK LAWS (CIVIL PENALTY) – $100 or triple amount of check not to exceed $500, after obtaining criminal conviction and civil judgment. GENERAL GARNISHMENT EXEMPTIONS – 100% plus marital property. COLLECTION AGENCY BOND & LICENSE – Bond: Yes – License: Yes – Fee: % of sales
PUERTO RICO
INTEREST RATE – Legal: 4.5%; reviewed every 6 months – Judgment: 4.55%; reviewed every 6 months STATUTE OF LIMITATIONS (IN YEARS) – Open Acct: 15 – Written Contract: n/a – Domestic Judgment: 15 – Foreign Judgment: 15 BAD CHECK LAWS (CIVIL PENALTY) – See articles 1851-1856 of the Puerto Rico Penal Code regarding bad check laws.
GENERAL GARNISHMENT EXEMPTIONS – 75% of last 30 days’ earnings for family support. COLLECTION AGENCY BOND & LICENSE – Bond: $5,000.00 – License: Yes – Fee: $500 orig. $500 ren.
RHODE ISLAND
INTEREST RATE – Legal: 12% (21% for contract) – Judgment: 12% unless otherwise already agreed upon rate STATUTE OF LIMITATIONS (IN YEARS) – Open Acct:10 – Written Contract: 10 – Domestic Judgment: 20 – Foreign Judgment: 20 BAD CHECK LAWS (CIVIL PENALTY) – Amount of check, $25 fee and treble damages up to $1,000. GENERAL GARNISHMENT EXEMPTIONS – First $50 of wages. Social welfare payments and see federal law. COLLECTION AGENCY BOND & LICENSE – Bond: No – License: No – Fee: No
SOUTH CAROLINA
INTEREST RATE – Legal: 8.75% – Judgment: 12% STATUTE OF LIMITATIONS (IN YEARS) – Open Acct: 3 – Written Contract: 3 – Domestic Judgment: 10 – Foreign Judgment: 10 BAD CHECK LAWS (CIVIL PENALTY) – Triple amount of check or $500, whichever is less GENERAL GARNISHMENT EXEMPTIONS – 100% exemption. COLLECTION AGENCY BOND & LICENSE – Bond: No – License: Yes (general business) – Fee: No
SOUTH DAKOTA
INTEREST RATE – Legal: 15% or contract rate – Judgment: 12% STATUTE OF LIMITATIONS (IN YEARS) – Open Acct: 6 – Written Contract: 6 – Domestic Judgment: 20 – Foreign Judgment: 10 BAD CHECK LAWS (CIVIL PENALTY) – All reasonable costs and expenses of collection GENERAL GARNISHMENT EXEMPTIONS – 80% and 40 x fed. min. hourly wage, plus $25 per wk. for ea. dependent in debtor’s household. COLLECTION AGENCY BOND & LICENSE – Bond: No – License: No – Fee: No
TENNESSEE
INTEREST RATE – Legal: 10% – Judgment: 10% or contract rate STATUTE OF LIMITATIONS (IN YEARS) – Open Acct: 6 – Written Contract: 6 – Domestic Judgment: 10 – Foreign Judgment: 10 BAD CHECK LAWS (CIVIL PENALTY) – Treble amount of check, but not to exceed $500. GENERAL GARNISHMENT EXEMPTIONS – See federal law. Add $2.50 per wk. for dependent child under 16 COLLECTION AGENCY BOND & LICENSE – Bond: $15,000 1-4 emp. $20,000 5-9 emp. $25,000 10+ emp. – License: Yes – Fee: $150 app.fee $600 orig. $350 ren. $100 br. $100 loc.mgr.app. $50 mgr. ren. $25 ea. Sol
TEXAS
INTEREST RATE – Legal: 6% absent contract – Judgment: If contract rate, then lesser of the contract rate or 18% STATUTE OF LIMITATIONS (IN YEARS) – Open Acct:4 – Written Contract: 4 – Domestic Judgment: 10 – Foreign Judgment: 10 BAD CHECK LAWS (CIVIL PENALTY) – none
GENERAL GARNISHMENT EXEMPTIONS – 100% of Wages COLLECTION AGENCY BOND & FEES – Bond: $10,000.00 – License: No – Fee: n/a
UTAH
INTEREST RATE – Legal: 10% – Judgment: Federal post-judgment interest rate as of Jan. 1 of each year plus 2%; judgment on contract shall conform to contract and shall bear interest agreed to by parties STATUTE OF LIMITATIONS (IN YEARS) – Open Acct: 4 – Written Contract: 6 – Domestic Judgment: 8 – Foreign Judgment: 8
BAD CHECK LAWS (CIVIL PENALTY) – Amount due, interest and costs of collection, court costs, reasonable attorneys’ fees. GENERAL GARNISHMENT EXEMPTIONS – See federal law, or $134/wk. COLLECTION AGENCY BOND & LICENSE – Bond: $10,000 – License: Registration – Fee: n/a
VERMONT
INTEREST RATE – Legal: 12% – Judgment: 12% STATUTE OF LIMITATIONS (IN YEARS) – Open Acct: 6 – Written Contract: 6 – Domestic Judgment: 8 – Foreign Judgment: 8 BAD CHECK LAWS (CIVIL PENALTY) – Court costs, service costs, bank fees, interest, attorney’s fees, damages in the amount of $50 GENERAL GARNISHMENT EXEMPTIONS – 75% of disposable earnings for wk., or 30 x fed. min. hourly wage, whichever is greater. If consumer credit transaction, 85% or 40 x fed. min. wage, whichever is greater. COLLECTION AGENCY BOND & LICENSE – Bond: No – License: No – Fee: No
VIRGINIA
INTEREST RATE – Legal: 8% or contract rate – Judgment: 9% or at contract rate, whichever is higher STATUTE OF LIMITATIONS (IN YEARS) – Open Acct: 3 – Written Contract: 5 – Domestic Judgment: 20 – Foreign Judgment: 10 BAD CHECK LAWS (CIVIL PENALTY) – Lesser of $100 or three times amount of check. GENERAL GARNISHMENT EXEMPTIONS – 75% of disposable earnings for wk., or excess of 30 x fed. min. hourly wage, whichever is greater. Varies for support situations. Debtor must be sent notice of how to claimexemption. COLLECTION AGENCY BOND & LICENSE – Bond: No – License: No – Fee: No
WASHINGTON
INTEREST RATE – Legal: 12% absent written contract rate – Judgment: Contract rate as long as within statutory limit or maximum rate; child support, 12% STATUTE OF LIMITATIONS (IN YEARS) – Open Acct: 6 – Written Contract: 6 – Domestic Judgment: 10 – Foreign Judgment: 10
BAD CHECK LAWS (CIVIL PENALTY) – Lesser of amount of check or interest at 12%, and cost of collection not to exceed $40. If court action necessary after 15 days, lesser of reasonable attorneys’ fees and treble face of check or $100. GENERAL GARNISHMENT EXEMPTIONS – 75% of disposable earnings, or 30 x fed. min. hourly wage, whichever is greater. If consumer cred. transaction, 85% or 40 x fed. min. wage, whichever is greater. COLLECTION AGENCY BOND & LICENSE – Bond: $5,000 – License: Yes: – Fee: $375 orig. app. $375 invest. $600 ren. $300 br. & ren.
WEST VIRGINIA
INTEREST RATE – Legal: 6%; 8% for contract – Judgment: 10% STATUTE OF LIMITATIONS (IN YEARS) – Open Acct: 5 – Written Contract: 10 – Domestic Judgment: 10 – Foreign Judgment: 10 BAD CHECK LAWS (CIVIL PENALTY) – Amount due, service charge not to exceed $10. GENERAL GARNISHMENT EXEMPTIONS – 80% of wages due or to be due within one year of issuance of execution, or 30 x fed. min. hourly wage. For consumer cred. debts, 80% of disposable earnings a wk., 30 x fed. min. hourly wage. COLLECTION AGENCY BOND & LICENSE – Bond: $5,000 – License: Yes – Fee: $15
WISCONSIN
INTEREST RATE – Legal: 5% unless otherwise agreed in writing – Judgment: 12% STATUTE OF LIMITATIONS (IN YEARS) – Open Acct: 6 – Written Contract: 6 – Domestic Judgment: 20 – Foreign Judgment: 20 (or foreign if less) BAD CHECK LAWS (CIVIL PENALTY) – Amount of check plus actual damages and exemplary damages not to exceed treble face amount of check. GENERAL GARNISHMENT EXEMPTIONS – 80% of net pay; affects earnings for all pay periods beginning within 13 weeks of service of garnishment on garnishee; also: earnings exempt for families below federal poverty level, eligible for AFDC, general relief, etc. COLLECTION AGENCY BOND & LICENSE – Bond: Net worth $15,000 and up; $25,000 bond – License: Yes – Fee: $100 invest. (min) $100 license $2 ea solicitor
WYOMING
INTEREST RATE – Legal: 7% – Judgment: 10% or contract rate STATUTE OF LIMITATIONS (IN YEARS) – Open Acct: 8 – Written Contract: 10 – Domestic Judgment: 10 – Foreign Judgment 5 BAD CHECK LAWS (CIVIL PENALTY) – Amount due as well as damages equal to the cost of collection plus reasonable attorneys’ fees. GENERAL GARNISHMENT EXEMPTIONS – See federal law. COLLECTION AGENCY BOND & LICENSE – Bond: $10,000 – License: Yes – Fee: $200 orig $100 ren. $100 br.
