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United States Collection Laws
Your state’s laws for legal interest rates, judgment interest rates, your states statute of limitations for open accounts, written contracts, domestic judgments, foreign judgments, bad check laws, and to see if the collection agency in your state needs to be licensed or bonded before being able to collect.
The below laws are a very important tool if you are served by an agency.
Alabama Collection Laws
Interest rate- Legal: 6%
- Judgment: 12%
- Open Acct.: 3
- Written Contract: 6
- Domestic Judgment: 20
- Foreign Judgment: 20
- Greater of $10.00 or Actual Bank Charges
- 75% of wages are exempt from garnishment
- Bond: No
- License: Yes
- Fee:
$25.00 – Population under 20,000
$100.00 – Population over 20,000 - Exemption for out-of-state collectors: Business License not required for out-of-state agency.
Alaska Collection Laws
Interest rate- Legal: 10.5%
- Judgment: 10.5%
- Sale of Goods: 4
- Written Contract: 6
- Domestic Judgment: 10
- Foreign Judgment: 10
- Damages in amount equal to $100.00 or triple the amount of the check whichever is greater. But no more than $1,000.00 over the amount of the check.
- 75% of employee’s weekly net income or $402.50 whichever is more
- Bond: $5,000.00
- License: Yes
- Fee:
$100.00- Application
$200.00 – PAgency Biennially
Arizona Collection Laws
Interest rate- Legal: 10%
- Judgment: 10% or contractual
- Open Acct.: 3
- Written Contract: 6 in AZ. – 4 outside AZ.
- Domestic Judgment: 5-additional 5 upon request (indefinitely)
- Foreign Judgment: 4
- Twice the amount of check, costs of suit, reasonable attorney fees
- See federal law
- Bond: $10,000.00 minimum (based on gross income)
- License: Yes
- Fee:
$1,500.00 Application Fee
$600.00 Annual Fee
$23.00 per Officers/Managers
Arkansas Collection Laws
Interest rate- Legal: 6% or 5 points above the Fed. discount rate
- Judgment: Contract rate or 10% per annum whichever is greater
- Open Acct.: 3
- Written Contract: 5 (partial payment stops the statute from running)
- Sale of Goods: (UCC-2) – 4
- Domestic Judgment: 10 – Renewable
- Foreign Judgment: 10
- Twice amount of check – prior to double charge – can start out with $15 charge per NSF check after 30 days.
- $500 head of family; $200 single. Includes personal property except clothing
- Bond: $5,000.00 to $25,000.00
- License: Yes
- Fee: $125.00 – $5.00 each employee
California Collection Laws
Interest rate- Legal: 10%
- Judgment: 10% (Unless otherwise contracted)
- Open Acct.: Reduced to writing-4
- Open Acct.: No writing-2
- Written Contract: 4
- Domestic Judgment: 10 (renewable at 10)
- Foreign Judgment: 10 (commencing with judgment debtor’s commencement of CA. residence.)
- Amount due, treble damages – minimum $100.00 maximum $1,500.00 per check.
- See federal law. Exemptions for necessities of life.
- No license or bond required
Colorado Collection Laws
Interest rate- Legal: 8%
- Judgment: 8% (or higher if specified in contract or note)
- Open Acct.: 3
- Written Contract: 6 (signed promissory note)
- Written Contract Goods Services: 3
- Domestic Judgment
District Court-20 (renewable every 20)
County Court-6 (renewable every 6) - Foreign Judgment: 6 in CO.
- Treble Damages & Reasonable Fees
- See federal law.
- Bond: $12,000.00 – $20,000.00
- License: Yes
- Fee: Determined by collection agency board
- Exemption for out-of-state collectors: Out of state collectors are exempt if [1] collecting only by interstate means (phone, fax, mail); [2] have no Colorado client; and [3] are regulated and licensed in the state in which they reside.
Connecticut Collection Laws
Interest rate- Legal: 8%
- Judgment: 10%
- Open Acct.: 6
- Written Contract: 6
- Oral Contract: 3
- Domestic Judgment: 20/25
- Small Claims Judgment: 10/15
- Foreign Judgment: 20
- Personal liability of signatory on corporate claims unless signed in corporate capacity.
- 25% you may garnish disposable earnings each week, or 40 x fed. min. hourly wage, which ever is less.
- Bond: $5,000.00
- License: Yes
- Fee:
$200.00 Yearly
$50.00 Investigation
Delaware Collection Laws
Interest rate- Legal + Judgment ?
- Federal Reserve Discount Rate Plus 5% Points
- Sale of Goods: 4
- Open Acct.: 4
- Written Contract: 3
- Domestic Judgment: No provision
- Foreign Judgment: No provision
- Amount due, cost of suit, protest fees
- 85% of disposable earnings or disposable earnings minus $150.00 weekly according to schedule.
- Bond: No
- License: Merc. License
- Fee: $50.00 Yearly
Florida Collection Laws
Interest rate- Legal: 10%
- Judgment: 10% or up to 18% if contractual
- Open Acct.: 4
- Written Contract: 5
- Domestic Judgment: 7 Renewable
- Foreign Judgment: 5 if not recorded instate
- After 30 day demand-treble amount in addition to amount owed, bank & court costs & reasonable attorney fees.
- See federal law except 100% head of household.
- Liberal Homestead Exemption – 1st $1,000.00 of automobile
- Bond: Yes – $50,000.00 (Commercial)
- License: Yes
- Fee:
$200.00 – Registration
$50.00 – Investigation
$200.00 – Renewal - Exemption for out-of-state collectors: Registration is required for out-of-state collectors if [1] soliciting accounts; [2] if client (creditor, its affiliate or subsidiary) has an office in Florida.
Georgia Collection Laws
Interest rate- Legal: 7%
- Judgment: 12%
- Commercial Accounts: 18%
- Open Acct.: 4
- Written Contract: 6
- Domestic Judgment: 7
- Foreign Judgment: 5
- After 10 day written demand double damages up to $500.00 and service charge of $20.00 or 5%, whichever is greater
- See federal law. City, County & State employees may be garnished
- Bond: No
- License: No
- Fee: No
Hawaii Collection Laws
Interest rate- Legal: 10% (no written contract)
- Judgment: 10% (no written contract)
- Sale of Goods: 6
- Open Acct.: 6
- Written Contract: 6
- Domestic Judgment: 10
- Foreign Judgment: 6 for regis./10 after Regis
- Damages equal to $100.00 or triple amount of check, not to exceed $500.00
- 95% of 1st $100.00
- 90% of 2nd $100.00
- 80% net wages in excess of $200.00 per mo.
- or federal limits whichever is greater
- Bond: $25,000.00/$15,000.00 each branch
- License: Registration with ‘DCCA’ required for consumer, not commercial, collections
- Fee:
$25.00 – Application
$80.00 – Registration
$50.00 – Compliance
$155.00 for 2 years
Idaho Collection Laws
Interest rate- Legal: 12%
- Judgment: 10.875% plus the base rate
- Open Acct.: 4
- Oral Contract: 4
- Written Contract: 5
- Domestic Judgment: 5 renewable
- Foreign Judgment: 6 renewable
- Triple amount of check up to $500 over the check amount
- See federal law.
- Bond: $5,000.00 initial
- License: Yes
- Fee:
$100.00 – permit fee
$50.00 – renewal - Exemption for out-of-state collectors: Out-of-state collectors may qualify for a special license if [1] only collecting for client; and [2] are licensed and bonded by any state.
Illinois Collection Laws
Interest rate- Legal: 5%
- Judgment: 9%
- Sales (UCC): 4
- Open Acct.: 5
- Written Contract: 10
- Domestic Judgment: 20
- Foreign Judgment: Same as foreign jurisdiction
- Triple check amount up to $500.00, attorney fees & court costs.
- 15% of gross wages or disposable earnings for workweek up to 45 x fed. min. hourly wage, whichever is greater.
- Bond: $5,000.00
- License: Yes
- Fee:
$750.00 – Original
$750.00 – Renewal - Exemption for out-of-state collectors: Out-of-state collectors may be exempt if [1] not soliciting accounts in Illinois; [2] their state of residence has laws which provide similar reciprocity (allow out-of-state agencies to collect only); and [3] the state in which the non-Illinois agency resides extends the same privileges to out-of-state agencies.
Indiana Collection Laws
Interest rate- Legal: 8%
- Judgment: 8%
- Open Acct.: 6
- Written Contract for payment of money
- Written Contract (other than payment of money): 10
- Written Contract for sale of goods: 4
- Domestic Judgment:
10 on real estate
20 against the person - Foreign Judgment: 10
(executed before 9/l/82): 10
(executed after 8/31/82): 6
- Triple check amount up to $500.00 over check amount, + attorney fees & interest up to 18% per annum or triple check amount + attorney fees and interest at 8% per annum.
- 75% of disposable earnings for work week or the amount of 30 x fed. min. hourly wage, whichever is greater.
- Bond: $5,000.00 each office
- License: Yes
- Fee:
$100.00 plus $5.00 per annum, each unlicensed employee
$30.00 branch office
$80.00 – Renewal - Exemption for out-of-state collectors: Out-of-state collectors are exempt from licensing if [1] collecting for a nonresident creditor; and [2] collection activities limited to interstate communications (phone, fax, mail).
Iowa Collection Laws
Interest rate- Legal: 5%
- Judgment: 10%
- Open Acct.: 5
- Written Contract: 10
- Domestic Judgment: 10 – can be renewed in the 9th year
- Foreign Judgment: 10 – can be renewed in the 9th year
- Triple check up to $500.00 over check amount
- See federal law.
- Bond: No
- License: No
- Fee: No
Kansas Collection Laws
Interest rate- Legal: 10%
- Judgment: 12%
- Open Acct.: 3
- Written Contract: 5
- Domestic Judgment: 5 renewable
- Foreign Judgment: 5 renewable
- Three times check amount not exceeding the check amount by $500 or $100 whichever is greater plus attorney fees
- See Federal Law
- Plus other personal property, benefit exemptions, and homestead
- Bond: No
- License: No
- Fee: No
Kentucky Collection Laws
Interest rate- Legal: 8%
- Judgment: 12%
- Open Acct.: 5
- Written Contract: 15
- Oral Contract: 5
- Domestic Judgment: 15
- Foreign Judgment: 15
- N/A
- 75% of disposable income or 30 times the federal minimum hourly wage (whichever is greater)
- Bond: No
- License: No
- Fee: No
Louisiana Collection Laws
Interest rate- Legal: 9.75%
- Judgment: 9.75%
- Open Acct.: 3
- Written Contract: 10
- Promissory Notes: 5
- Domestic Judgment: 10
- Foreign Judgment: 10
- After 30 day written demand (certified or registered), twice check amount. Attorney fees & court costs
- 75% disposable earnings per work week, but not less than 30 x fed. min. hourly wage.
- Bond: $10,000.00
- License: Yes
- Fee:
$200.00 Initial
$200.00 Investigation
$200.00 Renewal
$100.00 Branch
$100.00 Branch Renewal
Maine Collection Laws
Interest rate- Legal: 8%
- Post Judgment: 15% annual (less than $30,000.00) T-Bill rate over $30,000.00
- Open Acct.: 6
- Written Contract: 6 + 20 (with attestment) Domestic Judgment: 20
- Foreign Judgment: 20
- Amount due, court costs, service costs & collection costs
- You may garnish 25% of disposable income or 40 times the federal minimum wages per week (whichever is less) After judgment only.
- Bond: $25,000.00 to $50,000.00
- License: Yes
- Fee: $400.00 Yearly
- Exemption for out-of-state collectors: Contact state authority. Licensing authority is allowing some exemptions to out-of-state agencies that collect for nonresident creditors and are not soliciting.
Maryland Collection Laws
Interest rate- Legal: 6%
- Judgment: 10% or contractual
- Open Acct.: 3
- UCC: 4
- Specialty: 12 (contract under seal)
- Written Contract: 3
- Domestic Judgment: 12
- Foreign Judgment: 12
- After 30 day written notice, amount due, $25.00 fee, twice check amount up to $1000.00. (At the discretion of the court.) Applies to COD sales only.
- Greater of 75% or amount = to $145.00 x no. of weeks. in which wages due were earned; except in Caroline, Worchester, Kent & Queen Anne’s Counties, see federal law. Exemption is up to $3,0005.00 in cash and/or property for non-wage property exemption.
- Bond: $5,000.00
- License: Yes
- Fee: $200.00 each office
Massachusetts Collection Laws
Interest rate- Legal: 6%
- Judgment: 12%
- Contract: 12%
- Open Acct. on Contract: 6
- Contract: 6
- Sales (UCC) Contract: 4
- Domestic Judgment: 20 (presumed satisfied after 20 years)
- Foreign Judgment: 20
- Contracts Under Seal: 20
- Amount due, costs of suit, protest fees
- Additional damages $100.00 – $500.00 can be assessed.
- $125.00 week
- Bond: $10,000.00 – $25,000.00
- License: Yes
- Fee: Determined by commissioner
Michigan Collection Laws
Interest rate- Legal: 5%
- Judgment: 7.162% changes semiannually
- Usury limit 25%
- Open Acct.: 6
- Written Contract: 6
- Sales (UCC) Contract: 4
- Domestic Judgment: 10 renewable
- Foreign Judgment: 10
- Twice the amount of check-not to exceed $500.00
- Retail Claims – Notice Requirements.
- See federal law.
- Bond: $5,000.00 – $50,000.00
- License: Yes
- Fee:
$150.00 – Investigation
$225.00 – Initial
$125.00 – Annually - Exemption for out-of-state collectors: Out-of-state collector are exempt if [1] collecting by interstate means; and [2] have no clients in the state of Michigan.
Minnesota Collection Laws
Interest rate- Legal: 6%
- Judgment: 5% (Changes Yearly)
- Business or Agricultural Loan: 4.5% over federal discount rate
- Goods Sold & Delivered (UCC): 4
- Open Acct.: 6
- Written Contract: 6
- Transportation Service: 3
- Domestic Judgment: 10
- Foreign Judgment: 10
- $100.00 or up to 100% of the value of the check, whichever is greater, plus interest at the rate payable on judgments on the face amount of check, plus reasonable attorney fees if aggregate amount of checks within 6 month period is over $1250.00
- Greater of 75% or amount = to 40 x fed. min. hourly wage
- Bond: $5,000.00 to $20,000.00
- License: Yes
- Fee:
$1,000.00 – Initial
$400.00 – Annual
$10.00 – Per Collector
Mississippi Collection Laws
Interest rate- Legal: 8%
- Judgment: amount in contract if no contract amount court decides
- Open Acct.: 3
- Written Contract: 3
- UCC: 6
- Domestic Judgment: 7
- Foreign Judgment: 7 (3 if resident)
- On checks up to and including $25.00, additional damages would be 100% of check amount. On checks from $25.01 to $200.00, additional damages would be 50% of check amount but not less than $25.00. On checks over $200.00 additional damages would be 25% of check amount.
- See federal law.
- Bond: No
- License: City – Business
- Fee: $15.00 – $50.00
Missouri Collection Laws
Interest rate- Legal: 9%
- Judgment: 9%
- Sale of Goods: 4
- Open Acct.: 5
- Written Contract: 10
- Money & Property:
Domestic Judgment: 10 (Revived every 3 years)
Foreign Judgment: 10 (Revived every 3 years)
- Three times face amount owed or $100.00 whichever is greater not to exceed $500.00 (exclusive of attorney fees)
- See federal law; exempt 90% of week’s net pay, head of household, single person w/o depend. = 75%
- Bond: No
- License: No
- Fee: No
Montana Collection Laws
Interest rate- Legal: 10%
- Judgment: 10%
- A binding written agreement may provide for interest of 15% or 6% above prime
- Open Acct.: 5
- Written Contract: 8
- Domestic Judgment: 6 (over $5000.00) Renewable
- Foreign Judgment: 6 Renewable
- $100.00 minimum or 3 times face value up to $500.00
- See federal law.
- Bond: No
- License: No
- Fee: No
- Foreign corporations should register with MT Sec. of State prior to any suit in MT Courts or risk dismissal.
- Attorney fees only if provided by a signed written agreement.
Nebraska Collection Laws
Interest rate- Legal: 12% per written instrument or contract rate
- Judgment: 1% above bond equivalent yield as published by U.S. Treasury
- Open Acct.: 4
- Written Contract: 5
- Domestic Judgment: 5 renewable every 5
- Foreign Judgment: 5 nonrenewable
- Amount due, costs, protest fees
- Greater of 75% disposable earnings (85% if head of household), or 30 x fed. minimum hourly wage.
- Bond: Based on Lic. Solic. Less Than:
5 = 5,000.00
5 – 15=$10,000.00
16 – Up=$15,000.00 - License: Yes
- Fee: (not to exceed)
$250.00 – Investigation
$200.00 – Original
$100.00 – Renewal
$50.00 – Investigation Branch Office
$35.00 – Original Branch Office - Exemption for out-of-state collectors: Out-of-state collectors are exempt if [1] communicating by interstate means (phone, fax, mail); and [2] are “regulated” by the laws of another state.
New Hampshire Collection Laws
Interest rate- Judgment: 7.6%
- Open Acct.: 3
- For Goods: 4
- Written Contract: 3
- For Goods: 4
- Domestic Judgment: 20
- Foreign Judgment: 20
- Amount due, interest, court costs, reasonable costs of collection & $10.00 per day (max. $50.00)
- 50 x fed. min. hourly wage – All future wages are exempt so that the court cannot issue an ongoing order.
- Bond: No
- License: No
- Fee: No
New Jersey Collection Laws
Interest rate- Legal: 6%
- Judgment: No Statutory Provision
- Open Acct.: 6
- Sale of Goods: 4
- Written Contract: 6
- Domestic Judgment: 20
- Foreign Judgment: 20
- $142.50 wk. min. 10% of gross earnings $142.50 & Over
- N/A
- Bond: No
- License: No
- Fee: No
New Mexico Collection Laws
Interest rate- Judgment: 8.75% (in the absence of a written contract)
- Open Acct.: 4
- Written Contract: 6
- Domestic Judgment: 14
- Foreign Judgment: 14
- Amount due, triple damages up to $500.00 per check.
- Complex requirements need to be met.
- Greater of 75% or amount each wk. = to 40 x fed. min. hourly wage
- Bond: $5,000.00 minimum – based on volume
- License: Yes
- Fee:
$500.00 – original collection agency or branch
$300.00 – renewal collection agency or branch
$100.00 – examination fee for manager’s license
$50.00 – manager renewal - Exemption for out-of-state collectors: Out-of-state agency is exempt if [1] collecting by interstate means (phone, fax, mail); and [2] debt was incurred outside the state of New Mexico.
New York Collection Laws
Interest rate- Legal: 16%
- Judgment: 9%
- Open Acct.: 6
- Written Contract: 6
- Domestic Judgment: 20 (1 0 yr. renewable lien)
- Foreign Judgment: 20 (1 0 yr. renewable lien)
- Face value of check plus two times check amount up to a maximum of $400.00 on NSF or $750.00 on “no account” (Demand prescribed by law). GEN.OB.1.1-104
- 90% of earnings, except 1st $127.50 wk. wholly exempt.
- Bond: No
- License: No
- Fee: No
- Buffalo: $5,000.00 Bond – $50.00 fee
- NYC: License – $150.00 – 2 yr. fee
North Carolina Collection Laws
Interest rate- Legal: 8%
- Judgment: 8%
- Open Acct.: 3
- Sale of Goods: 4
- Written Contract: 3
- Domestic Judgment: 10
- Foreign Judgment: 10
- 30 day written demand lesser of $500.00 or 3x check amount, but not less than $100.00
- 100% of last 60 days’ earnings for family support. Garnishment only by political subdivisions for taxes, ambulance fees, etc.
- Bond: $5,000.00 to $50,000.00
- License: Yes
- Fee: $500.00
- Exemption for out-of-state collectors: Contact state authorities. Unofficially, licensing authorities may allow out-of-state agencies to bypass requirements if they do not solicit in state and/or work for instate clients.
North Dakota Collection Laws
Interest rate- Legal: 6%
- Judgment: 12%
- Open Acct. for services: 6
- Sale of Goods: 4
- Written Contract: 6
- Domestic Judgment: 10 renewable
- Foreign Judgment: 10 renewable
- Amount due, collection fees of $20.00, and $100.00 or 3x check whichever is less.
- Greater of 75% or amount each wk. = to 40 x fed. min. hourly wage. Plus $20.00 each household dependent.
- Bond: $20,000
- License: Yes
- Fee: $200.00
- Exemption for out-of-state collectors: Out-of-state collectors may be exempt if [1] collecting only; [2] their office is located in a state that has a reciprocal law; and [3] the state has “enacted similar legislation”.
Ohio Collection Laws
Interest rate- Legal: 10%
- Judgment: 10%
- Open Acct.: 4
- Sales Contract (UCC2-725)
- Written Contract: 15
- Domestic Judgment: 21 renew every 5
- Foreign Judgment: 21 renew every 5
- The greater of $200.00 or three times the amount of check and attorney fees (no maximum)
- See federal law. Garnishment limited to once a month per employee
- Bond: No
- License: No
- Fee: No
Oklahoma Collection Laws
Interest rate- Legal: 6%
- Judgment: 4% over U.S. Treasury Bill Rate of previous year. (1996 = 9.55% 1997 = 9.15%)
- Open Acct.: 3
- Written Contract: 5
- Domestic Judgment: 5 renewable
- Foreign Judgment: 3
- N/A
- State law: 75% of earnings exempted, more if hardship established. All federal exemptions apply.
- Bond: No
- License: No
- Fee: No
Oregon Collection Laws
Interest rate- Statutory + Judgment: 9% simple interest per annum (Unless specified by contract)
- Open Acct.: 6
- Sale of Goods: 6 (4 yrs UCC Transaction)
- Written Contract: 6
- Domestic Judgment: 10 – Renewable at 10
- Foreign Judgment: 10
- Can recover reasonable attorney fees & statutory damages of three times the amount of the NSF check plus $500.00 if demand letter is sent to debtor 30 days before suit is filed.
- 75% of disposable earnings or 40 x fed. min. hourly wage.
- Bond: No
- License: Registration only
- Fee: Established by director
- Exemption for out-of-state collectors: Contact state authorities. Out-of-state agencies may be exempt if [1] collecting for out-of-state client; [2] the debt was incurred by an Oregonian outside the state; and [3] the state where the collection agency is headquartered has a registration program comparable to Oregon’s law.
Pennsylvania Collection Laws
Interest rate- Legal: 6%
- Judgment: 6%
- Open Acct.: 4
- Written Contract: 4
- Domestic Judgment: 5 (writ of revival within 5 yrs.)
- Foreign Judgment: 4
Lien against real estate: 5 yrs.
Personal property Ex: 20 yrs.
- After demand and judgment triple damages in amount equal to $100.00 or 3 times the check amount whichever is greater up to $500.00
- 100% of wages, certain pensions, retirement accounts & Keogh plan under certain circumstances, and $300.00
- Bond: No
- License: No
- Fee: No
Rhode Island Collection Laws
Interest rate- Legal: 12%
- Judgment: 12%
- Open Acct.: 10
- Written Contract: 10
- Domestic Judgment: 20
- Foreign Judgment: 20
- Amount of check, $25.00 fee & treble damage up to $1,000.00
- See federal law.
- Bond: No
- License: No
- Fee: No
South Carolina Collection Laws
Interest rate- Legal: 8.75%
- Judgment: 12%
- Open Acct.: 3
- Written Contract: 3
- Domestic Judgment: 10
- Foreign Judgment: 10
- Reasonable court costs amount of check& damages up to $500.00 or 3x check amount whichever is smaller
- 100%
- Bond: No
- License: Yes – all business
- Fee: No
- Exemption for out-of-state collectors: License required for instate agency only.
South Dakota Collection Laws
Interest rate- Legal: 12%
- Judgment: 10%
- Open Acct.: 6
- Sale of Goods: 4
- Written Contract: 6
- Domestic Judgment: 20
- Foreign Judgment: 10
- N/A
- 20% of the individuals disposable earnings for a 60 day period
- Bond: No
- License: No
- Fee: No
Tennessee Collection Laws
Interest rate- Legal: 10%
- Judgment: 10% (or contract rate) (varies with type of transaction)
- Open Acct.: 6
- Written Contract: 6
- Domestic Judgment: 10
- Foreign Judgment: 10
- Treble damages up to $500.00 + 10% interest & reasonable service charges, atty.’s fees, & court costs.
- See federal law. Add $2.50 per wk. for dependent child under 16.
- Bond:
$15,000.00 1-4 employee
$20,000.00 5-9 employee
$25,000.00 10 or more - License: Yes
- Fee:
$600.00 – Original
$350.00 – Renewal
$25.00 – Each Solicitor - Exemption for out-of-state collectors: Contact state licensing authority. Out-of-state agencies may be exempt if they [1] maintain office in another state; [2] resides in a state that provides reciprocity; and [3] comply with provisions of licensing.
Texas Collection Laws
Interest rate- Legal: 6% with agreement can charge up to 18%. w/o agreement – statutory interest of 6% begins to run 30th day after becoming due
- Judgment: 10%
- Open Acct.: 4
- Written Contract: 4
- Domestic Judgment: 10 (Renewable)
- Foreign Judgment: 10 (Renewable)
- N/A
- 100% of Wages
- Bond: Yes
- License: No
- Fee: No
Always consult counsel to charge interest
Utah Collection Laws
Interest rate- Legal: 7.35%
- Judgment: Contract rate or Federal Judgment Rate
- Open Acct.: 4
- Written Contract: 6
- Domestic Judgment: 8
- Foreign Judgment: 8
- Certified statutory bad check notice must be sent. Amount due, interest, court costs, reasonable attorney’s fees, plus $15.00 bad check fee.
- $142.50 of disposable earnings for wages paid weekly.
- Bond: $10,000.00
- License: Yes
- Fee: Varies by City and County.
Vermont Collection Laws
Interest rate- Legal: 12%
- Judgment: 12%
- Open Acct.: 6
- Written Contract: 6
- Domestic Judgment: 8
- Foreign Judgment: 8
- Court costs, amount of check, attorney’s fees, damage of $50.00 (Notices required)
- 75% of earning above minimum wage or what is necessary to live.
- Bond: No
- License: No
- Fee: No
Virginia Collection Laws
Interest rate- Legal: 8%
- Judgment: 9% or contract rate whichever is higher
- Open Acct.: 3 Last charge or payment Written Contract: 5
- Domestic Judgment: 20
- Foreign Judgment: 10
- Sales of goods under article 2 is 4 years
- Lesser of $250.00 or three times check amount
- See federal law
- Bond:$5,000.00
- License: Depends on Locality
- Fee: No
Washington Collection Laws
Interest rate- Legal: 12%
- Judgment: 12%
- Open Acct.: 3
- Written Contract: 6
- Domestic Judgment: 10
- Foreign Judgment: 10
- Lesser of check amount or 12% interest, collection costs up to $40.00. If taken to court, reasonable attorney’s fees, 3 x value, or up to $300.00. Now have 6 years to enforce a bad check.
- Greater of 75% or $64 wk. (40 x state min. hourly wage).
- Bond: $6,000.00 general, $4,000.00 specialty
- License: Yes
- Fee:
$100.00 – Investigation
$100.00 – Original
$100.00 – Renewable
$50.00 – Branch Office - Exemption for out-of-state collectors: Contact state authorities. Out-of-state agencies may qualify for lesser licensing fees. Out-of-state collectors are no longer required to have resident office and instate trust accounts if they don’t have instate client. Bond is not required if held in home state.
West Virginia Collection Laws
Interest rate- Legal: 6%
- Judgment: 10%
- Open Acct.: 5
- Written Contract: 10
- Domestic Judgment: 10
- Foreign Judgment: 10
- Amount due, service charge up to $10.00. If check is under $500.00 = misdemeanor. Over $500.00 = felony.
- See West Virginia code 38-5A-3-Employees withhold 20% of disposable income or 30x the minimum hourly rate, whichever is less. Other exemptions apply.
- Bond: $5,000.00
- License: Yes – Franchise Reg. Cert.
- Fee: $15.00 Annual
- Exemption for out-of-state collectors: Contact state authorities. Some out-of-state agencies may be exempt if they are only collecting for out-of-state clients.
Wisconsin Collection Laws
Interest rate- Legal: 5%
- Judgment: 12%
- Open Acct.: 6
- Written Contract: 6
- Domestic Judgment: 20
- Foreign Judgment: 20
- Amount of check plus actual damages + exemplary damages up to three times value of check. Limited to $300.00
- 80% of net pay.
- Bond: $15,000.00 min
- License: Yes
- Fee:
$1,000.00 – Investigation
$200.00 – Annua - Exemption for out-of-state collectors: Out-of-state agencies do not need to be licensed if [1] collecting by interstate means (phone, fax, mail); and [2] collecting for an out-of-state client.
Wyoming Collection Laws
Interest rate- Legal: 7%
- Judgment: contract rate or 10% judgment rate
- Open Acct.: 8
- Written Contract: 10
- Domestic Judgment: 5
- Foreign Judgment: 5
- Double the face amount plus damages equal to collection cost and reasonable attorney fees.
- See federal law for consumer credit sale, lease or loan. Up to 65% for child support arrearage.
- Bond: $10,000.00
- License: Yes
- Fee:
$200.00 – Original
$100.00 – Renewal
$100.00 – Branch - Exemption for out-of-state collectors: Out-of-state agencies may bypass licensing if they are not [1] soliciting clients in Wyoming; or [2] collecting for Wyoming creditors.
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