State Collection Laws

In an effort to assist our debt community of buyers, sellers and collectors, eDebtNetwork.com has compiled a state by state summary of collection laws based upon information received from various sources including professional legal counsel in each state. The information provided below is on a state by state basis and includes the most basic collection information such as statute of limitations determinations (judgments v. open accounts) as well as state garnishment information.

Alabama
Alaska
Arizona †
Arkansas
California †
Colorado
Connecticut
Delaware
District of Columbia
Florida
Georgia
Hawaii
Idaho †
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana †
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada †
New Hampshire
New Jersey
New Mexico †
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Puerto Rico
Rhode Island
South Carolina
South Dakota
Tennessee
Texas †
Utah
Vermont
Virginia
Washington †
West Virginia
Wisconsin
Wyoming

† - community property states

STATE: ALABAMA

INTEREST RATE

Legal: 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
75% of wages are exempt from garnishment

COLLECTION AGENCY BOND & LICENSE

Bond: No
License: Yes
Fee:
- $25 - Population under 20,000
- $100 - Population over 20,000
Exemption for out-of-state collectors: Business License not required for out-of-state agency.

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STATE: ALASKA

INTEREST RATE

Legal: 10.5%
Judgment: 10.5% or contractual

STATUTE OF LIMITATIONS (IN YEARS)

Sale of Goods: 4
Written Contract: 6
Domestic Judgment: 10
Foreign Judgment: 10

BAD CHECK LAWS (CIVIL PENALTY)
Damages in amount equal to $100 or triple the amount of the check whichever is greater. But no more than $1000 over the amount of the check.

GENERAL GARNISHMENT EXEMPTIONS
75% of employee's weekly net income or $402.50 whichever is more.

COLLECTION AGENCY BOND & LICENSE

Bond: $5000 License: Yes
Fee:
- $100 - Application
- $200 - Agency Biennially

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STATE: ARIZONA †

INTEREST RATE

Legal: 10%
Judgment: 10% or contractual

STATUTE OF LIMITATIONS (IN YEARS)

Open Acct.: 3
Written Contract: 6 in Az. - 4 outside Az.
Domestic Judgment: 5-additional 5 upon request (indefinitely)
Foreign Judgment: 4

BAD CHECK LAWS (CIVIL PENALTY)
Twice the amount of check, costs of suit, reasonable attorney fees.

GENERAL GARNISHMENT EXEMPTIONS
See federal law.

COLLECTION AGENCY BOND & LICENSE

Bond: $10,000 minimum (based on gross income)
License: Yes
Fee:
- $1500 Application Fee
- $600 Annual Fee
- $23 per Officers/Managers

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STATE: ARKANSAS

INTEREST RATE

Legal: 6% or 5 points above the Fed. discount rate
Judgment: Contract rate or 10% per annum whichever is greater

STATUTE OF LIMITATIONS (IN YEARS)

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

BAD CHECK LAWS (CIVIL PENALTY)
Twice amount of check - prior to double charge - can start out with $15 charge per NSF check after 30 days.

GENERAL GARNISHMENT EXEMPTIONS
$500 head of family; $200 single. Includes personal property except clothing.

COLLECTION AGENCY BOND & LICENSE

Bond: $5000 to $25000
License: Yes
Fee: $125 - $5 each employee

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STATE: CALIFORNIA †

INTEREST RATE

Legal: 10%
Judgment: 10% (Unless otherwise contracted)

STATUTE OF LIMITATIONS (IN YEARS)

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.)

BAD CHECK LAWS (CIVIL PENALTY)
Amount due, Treble damages - minimum $100 maximum $1500 per check

GENERAL GARNISHMENT EXEMPTIONS
See federal law. Exemptions for necessaries of life.

COLLECTION AGENCY BOND & LICENSE
No license or bond required.

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STATE: COLORADO

INTEREST RATE

Legal: 8%
Judgment: 8% (or higher if specified in contract or note)

STATUTE OF LIMITATIONS (IN YEARS)

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.

BAD CHECK LAWS (CIVIL PENALTY)
Treble Damages & Reasonable Fees

GENERAL GARNISHMENT EXEMPTIONS
See federal law.

COLLECTION AGENCY BOND & LICENSE

Bond: $12,000 - 20,000
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 an\d licensed in the state in which they reside.

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STATE: CONNECTICUT

INTEREST RATE

Legal: 8%
Judgment: 10%

STATUTE OF LIMITATIONS (IN YEARS)

Open Acct.: 6
Written Contract: 6
Oral Contract: 3
Domestic Judgment: 20/25
Small Claims Judgment: 10/15
Foreign Judgment: 20

BAD CHECK LAWS (CIVIL PENALTY)
Personal liability of signatory on corporate claims unless signed in corporate capacity.

GENERAL GARNISHMENT EXEMPTIONS
25% you may garnish disposable earnings each week, or 40 x fed. min. hourly wage, whichever is less.

COLLECTION AGENCY BOND & LICENSE

Bond:$5000
License: Yes
Fee:
- $200 Yearly
- $50 Investigation

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STATE: DELAWARE

INTEREST RATE

Legal + Judgment -
Federal Reserve Discount Rate Plus 5% Points

STATUTE OF LIMITATIONS (IN YEARS)

Sale of Goods: 4
Open Acct.: 4
Written Contract: 3
Domestic Judgment: No provision
Foreign Judgment: No provision

BAD CHECK LAWS (CIVIL PENALTY)
Amount due, cost of suit, protest fees

GENERAL GARNISHMENT EXEMPTIONS
85% of disposable earnings or disposable earnings minus $150 weekly according to schedule.

COLLECTION AGENCY BOND & LICENSE

Bond: No
License: Merc. License
Fee: $50 Yearly

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DISTRICT OF COLUMBIA

INTEREST RATE

Legal: 6%
Judgment: 70% of interest rates on taxes to IRS

STATUTE OF LIMITATIONS (IN YEARS)

Open Acct.: 3
Written Contract: 3
Domestic Judgment: 20
Foreign Judgment: Foreign Statute

BAD CHECK LAWS (CIVIL PENALTY)
Amount Due - Protest Fees

GENERAL GARNISHMENT EXEMPTIONS
See federal law. D.C. Government employees are not attachable.

COLLECTION AGENCY BOND & LICENSE

Bond: No
License: No
Fee: No

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STATE: FLORIDA

INTEREST RATE

Legal: 10%
Judgment: 10% or up to 18% if contractual

STATUTE OF LIMITATIONS (IN YEARS)

Open Acct.: 4
Written Contract: 5
Domestic Judgment: 7 Renewable
Foreign Judgment: 5 if not recorded in-state

BAD CHECK LAWS (CIVIL PENALTY)
After 30 day demand-treble amount in addition to amount owed, bank & court costs & reasonable attorney fees.

GENERAL GARNISHMENT EXEMPTIONS

See federal law except 100% head of household.
Liberal Homestead Exemption - 1st $1,000 of automobile

COLLECTION AGENCY BOND & LICENSE

Bond: Yes - $50,000 (Commercial)
License: Yes
Fee: Yes
- $200 - Registration
- $50 - Investigation
- $200 - 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.

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STATE: GEORGIA

INTEREST RATE

Legal: 7%
Judgment: 12%
Commercial Accounts: 18%

STATUTE OF LIMITATIONS (IN YEARS)

Open Acct.: 4
Written Contract: 6
Domestic Judgment: 7
Foreign Judgment: 5

BAD CHECK LAWS (CIVIL PENALTY)
After 10 day written demand double damages up to $500 and service charge of $20 or 5%, whichever is greater,

GENERAL GARNISHMENT EXEMPTIONS
See federal law. City, County & State employees may be garnished.

COLLECTION AGENCY BOND & LICENSE

Bond: No
License: No
Fee: No

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STATE: HAWAII

INTEREST RATE

Legal: 10% (no written contract)
Judgment: 10% (no written contract)

STATUTE OF LIMITATIONS (IN YEARS)

Sale of Goods: 6
Open Acct.: 6
Written Contract: 6
Domestic Judgment: 10
Foreign Judgment: 6 for regis./10 after Regis.

BAD CHECK LAWS (CIVIL PENALTY)
Damages equal to $1 00 or triple amount of check, not to exceed $500.

GENERAL GARNISHMENT EXEMPTIONS
95% of 1st $100, 90% of 2nd $100, 80% net wages in excess of $200 per mo. or federal limits whichever is greater

COLLECTION AGENCY BOND & LICENSE

Bond: $25,000/$15,000 each branch
License: Registration with 'DCCA' required for consumer, not commercial, collections
Fee:
- $ 25 - Application
- $ 80 - Registration
- $ 50 - Compliance
- $155 for 2 years

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STATE: IDAHO †

INTEREST RATE

Legal: 12%
Judgment: 10.875% plus the base rate

STATUTE OF LIMITATIONS (IN YEARS)

Open Acct.: 4
Oral Contract: 4
Written Contract: 5
Domestic Judgment: 5 renewable
Foreign Judgment: 6 renewable

BAD CHECK LAWS (CIVIL PENALTY)
Triple amount of check up to $500 over the check amount

GENERAL GARNISHMENT EXEMPTIONS
See federal law.

COLLECTION AGENCY BOND & LICENSE

Bond: $5,000 initial
License: Yes
Fee: $100 -permit fee $50 - 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.

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STATE: ILLINOIS

INTEREST RATE

Legal: 5%
Judgment: 9%

STATUTE OF LIMITATIONS (IN YEARS)

Sales (UCC): 4
Open Acct.: 5
Written Contract: 10
Domestic Judgment: 20
Foreign Judgment: Same as foreign jurisdiction

BAD CHECK LAWS (CIVIL PENALTY) Triple check amount up to $500, attorney fees & court costs.

GENERAL GARNISHMENT EXEMPTIONS
15% of gross wages or disposable earnings for workweek up to 45 x fed. min. hourly wage, whichever is greater.

COLLECTION AGENCY BOND & LICENSE

Bond: $25,000
License: Yes
Fee:
- $750 - Original
- $750 - 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.

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STATE: INDIANA

INTEREST RATE

Legal: 8%
Judgment: 8%

STATUTE OF LIMITATIONS (IN YEARS)

Open Acct.: 6
Written Contract for payment of money
- (executed before 9/l/82): 10
- (executed after 8/31/82): 6
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

BAD CHECK LAWS (CIVIL PENALTY)
Triple check amount up to $500 over check amount, + attorney fees & interest up to 18% per annum or triple check amount + attorney fees and interest at 8% per annum.

GENERAL WAGE GARNISHMENT EXEMPTIONS
75% of disposable earnings for work week or the amount of 30 x fed. min. hourly wage, whichever is greater.

COLLECTION AGENCY BOND & LICENSE

Bond: $5000 each office
License: Yes
Fee:
- $100 plus $5 per annum, each unlicenced employee
- $30 branch office
- $80 - Renewal
Exemption for out-of-state collectors: Out-of-state collectors are exempt from licensing if [1] collecting for a non-resident creditor; and [2] collection activities limited to interstate communications (phone, fax, mail).

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STATE: IOWA

INTEREST RATE

Legal: 5%
Judgment: 10%

STATUTE OF LIMITATIONS (IN YEARS)

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

BAD CHECK LAWS (CIVIL PENALTY)
Triple check up to $500 over check amount

GENERAL GARNISHMENT EXEMPTIONS
See federal law.

COLLECTION AGENCY BOND & LICENSE

Bond: No
License: No
Fee: No

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STATE: KANSAS

INTEREST RATE

Legal: 10%
Judgment: 12%

STATUTE OF LIMITATIONS (IN YEARS)

Open Acct.: 3
Written Contract: 5
Domestic Judgment: 5 renewable
Foreign Judgment: 5 renewable

BAD CHECK LAWS (CIVIL PENALTY)
Three times check amount not exceeding the check amount by $500 or $100 whichever is greater plus attorney fees

GENERAL GARNISHMENT EXEMPTIONS

See Federal Law
Plus other personal property, benefit exemptions, and homestead

COLLECTION AGENCY BOND & LICENSE

Bond: No
License: No
Fee: No

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STATE: KENTUCKY

INTEREST RATE

Legal: 8%
Judgment: 12%

STATUTE OF LIMITATIONS (IN YEARS)

Open Acct.: 5
Written Contract: 15
Oral Contract: 5
Domestic Judgment: 15
Foreign Judgment: 15

BAD CHECK LAWS (CIVIL PENALTY)
N/A

GENERAL GARNISHMENT EXEMPTIONS
75% of disposable income or 30 times the federal minimum hourly wage (whichever is greater)

COLLECTION AGENCY BOND & LICENSE

Bond: No
License: No
Fee: No

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STATE: LOUISIANA †

INTEREST RATE

Legal: 9.75%
Judgment: 9.75%

STATUTE OF LIMITATIONS (IN YEARS)

Open Acct.: 3
Written Contract: 10
Promissory Notes: 5
Domestic Judgment: 10
Foreign Judgment: 10

BAD CHECK LAWS (CIVIL PENALTY)
After 30 day written demand (certified or registered), twice check amount. Attorney fees & court costs

GENERAL GARNISHMENT EXEMPTIONS
75% disposable earnings per work week, but not less than 30 x fed. min. hourly wage.

COLLECTION AGENCY BOND & LICENSE

Bond: Yes - $10,000
License: Yes
Fee:
- $200 Initial
- $200 Investigation
- $200 Renewal
- $100 Branch
- $100 Branch Renewal

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STATE: MAINE

INTEREST RATE

Legal: 8%
Post Judgment: 15% annual (less than $30,000) T-Bill rate over $30,000

STATUTE OF LIMITATIONS (IN YEARS)

Open Acct.: 6
Written Contract: 6 + 20 (with attestment) Domestic Judgment: 20
Foreign Judgment: 20

BAD CHECK LAWS (CIVIL PENALTY)
Amount due, court costs, service costs & collection costs

GENERAL GARNISHMENT EXEMPTIONS
You may garnish 25% of disposable income or 40 times the federal minimum wages per week (whichever is less) After judgement only.

COLLECTION AGENCY BOND & LICENSE

Bond: $25,000 to $50,000
License: Yes
Fee: $400 Yearly
Exemption for out-of-state collectors: Contact state authority. Licensing authority is allowing some exemptions to out-of-state agencies that collect for non-resident creditors and are not soliciting.

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STATE: MARYLAND

INTEREST RATE

Legal: 6%
Judgment: 10% or contractual

STATUTE OF LIMITATIONS (IN YEARS)

Open Acct.: 3
UCC: 4
Specialty: 12 (contract under seal)
Written Contract: 3
Domestic Judgment: 12
Foreign Judgment: 12

BAD CHECK LAWS (CIVIL PENALTY)
After 30 day written notice, amount due, $25 fee, twice check amount up to $1000. (At the discretion of the court.) Applies to COD sales only.

GENERAL GARNISHMENT EXEMPTIONS
Greater of 75% or amount = to $145 x no. of wks. in which wages due were earned; except in Caroline, Worchester, Kent & Queen Anne's Counties, see federal law. Exemption is up to $3,000 in cash and/or property for non-wage property exemption.

COLLECTION AGENCY BOND & LICENSE

Bond: $5000
License: Yes
Fee: $200 each office

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STATE: MASSACHUSETTS

INTEREST RATE

Legal: 6%
Judgment: 12%
Contract: 12%

STATUTE OF LIMITATIONS (IN YEARS)

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

BAD CHECK LAWS (CIVIL PENALTY)

Amount due, costs of suit, protest fees
Additional damages $100 - $500 can be assessed.

GENERAL GARNISHMENT EXEMPTIONS $125 week

COLLECTION AGENCY BOND & LICENSE

Bond: $10,000 - $25,000
License: Yes
Fee: Determined by commissioner

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STATE: MICHIGAN

INTEREST RATE

Legal: 5%
Judgment: 7.162 changes semi-annually
Usury limit 25%

STATUTE OF LIMITATIONS (IN YEARS)

Open Acct.: 6
Written Contract: 6
Sales (UCC) Contract: 4
Domestic Judgment: 10 renewable
Foreign Judgment: 10

BAD CHECK LAWS (CIVIL PENALTY)

Twice the amount of check-not to exceed $500.
Retail Claims - Notice Requirements.

GENERAL GARNISHMENT EXEMPTIONS See federal law.

COLLECTION AGENCY BOND & LICENSE (RETAIL ONLY)

Bond: $5,000 - $50,000
License: Yes
Fee:
- $150 - Investigation
- $225 - Initial
- $125 - 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.

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STATE: MINNESOTA

INTEREST RATE

Legal: 6%
Judgment: 5% (Changes Yearly)
Business or Agricultural Loan: 4.5% over federal discount rate

STATUTE OF LIMITATIONS (IN YEARS)

Goods Sold & Delivered (UCC): 4
Open Acct.: 6
Written Contract: 6
Transportation Service: 3
Domestic Judgment: 10
Foreign Judgment: 10

BAD CHECK LAWS (CIVIL PENALTY)
$100 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.

GENERAL GARNISHMENT EXEMPTIONS
Greater of 75% or amount = to 40 x fed. min. hourly wage

COLLECTION AGENCY BOND & LICENSE

Bond: $5,000 to $20,000
License: Yes
Fee:
- $1,000 - Initial
- $400 - Annual
- $10 - Per Collector

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STATE: MISSISSIPPI

INTEREST RATE

Legal: 8%
Judgment: amount in contract if no contract amount court decides

STATUTE OF LIMITATIONS (IN YEARS)

Open Acct.: 3
Written Contract: 3
UCC: 6
Domestic Judgment: 7
Foreign Judgment: 7 (3 if resident)

BAD CHECK LAWS (CIVIL PENALTY)
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.

GENERAL GARNISHMENT EXEMPTIONS
See federal law.

COLLECTION AGENCY BOND & LICENSE

Bond: No
License: City-Business
Fee: $15-$50

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STATE: MISSOURI

INTEREST RATE

Legal: 9%
Judgment: 9%

STATUTE OF LIMITATIONS (IN YEARS)

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)

BAD CHECK LAWS (CIVIL PENALTY)
Three times face amount owed or $100 whichever is greater not to exceed $500 (exclusive of attorney fees)

GENERAL GARNISHMENT EXEMPTIONS
See federal law; exempt 90% of week's net pay, head of household, single person w/o depend. = 75%

COLLECTION AGENCY BOND & LICENSE

Bond: No
License: No
Fee: No

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STATE: MONTANA

INTEREST RATE

Legal: 10%
Judgment: 10%
A binding written agreement may provide for interest of 15% or 6% above prime

STATUTE OF LIMITATIONS (IN YEARS)

Open Acct.: 5
Written Contract: 8
Domestic Judgment: 6 (over $5000) Renewable
Foreign Judgment: 6 Renewable

BAD CHECK LAWS (CIVIL PENALTY)
$100 minimum or 3 times face value up to $500

GENERAL GARNISHMENT EXEMPTIONS
See federal law.

COLLECTION AGENCY BOND & LICENSE

Bond: No
License: No
Fee: No

Caveats:
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.

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STATE: NEBRASKA

INTEREST RATE

Legal: 12% per written instrument or contract rate
Judgment: 1% above bond equivalent yield as published by U.S. Treasury

STATUTE OF LIMITATIONS (IN YEARS) Open Acct.: 4 Written Contract: 5 Domestic Judgment: 5 renewable every 5 Foreign Judgment: 5 non-renewable

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. minimum hourly wage.

COLLECTION AGENCY BOND & LICENSE

Bond: Based on Lic. Solic. Less Than 5 = 5,000, 5-15=$10,000, 16-Up=$15,000
License: Yes
Fee: (not to exceed)
- $250 - Investigation
- $200 - Original
- $100 - Renewal
- $50 - Investigation Branch Office
- $35 - 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.

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STATE: NEVADA †

INTEREST RATE

Legal: 2% Over Prime
Judgment: 2% Over Prime

STATUTE OF LIMITATIONS (IN YEARS)

Open Acct.: 4
Written Contract: 6
Lease: 4
Domestic Judgment: 6
Foreign Judgment: 6

BAD CHECK LAWS (CIVIL PENALTY)
Amount due, protest fees three times check amount not more than $500, or less than $100

GENERAL GARNISHMENT EXEMPTIONS
Garnish only. 25% of Disposable earnings for each week or 30 times federal minimum hourly wage (whichever is less)

COLLECTION AGENCY BOND & LICENSE

Bond: $25,000 to $50,000
License: Yes
Fee:
- $250 - App. Survey
- $300 - Original
- $200 - Renewal
Exemption for out-of-state collectors: Out-of-state collectors are exempt if [1] collecting by interstate means (phone, fax, mail); and [2] collecting for an out-of-state client.

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STATE: NEW HAMPSHIRE

INTEREST RATE

Judgment: 7.6%

STATUTE OF LIMITATIONS (IN YEARS)

Open Acct.: 3
For Goods: 4
Written Contract: 3
For Goods: 4
Domestic Judgment: 20
Foreign Judgment: 20

BAD CHECK LAWS (CIVIL PENALTY)
Amount due, interest, court costs, reasonable costs of collection & $10 per day (max. $50)

GENERAL GARNISHMENT EXEMPTIONS
50 x fed. min. hourly wage - All future wages are exempt so that the court cannot issue an ongoing order.

COLLECTION AGENCY BOND & LICENSE

Bond: No
License: No
Fee: No

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STATE: NEW JERSEY

INTEREST RATE

Legal: 6%
Judgment: No Statutory Provision

STATUTE OF LIMITATIONS (IN YEARS)

Open Acct.: 6
Sale of Goods: 4
Written Contract: 6
Domestic Judgment: 20
Foreign Judgment: 20

BAD CHECK LAWS (CIVIL PENALTY)
N/A

GENERAL GARNISHMENT EXEMPTIONS
$142.50 wk. min. 10% of gross earnings $142.50 & Over

COLLECTION AGENCY BOND & LICENSE

Bond: $5000 Surety
License: No
Fee: No

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STATE: NEW MEXICO †

INTEREST RATE

Judgment: 8.75% (in the absence of a written contract)

STATUTE OF LIMITATIONS (IN YEARS)

Open Acct.: 4
Written Contract: 6
Domestic Judgment: 14
Foreign Judgment: 14

BAD CHECK LAWS (CIVIL PENALTY)

Amount due, triple damages up to $500 per check.
Complex requirements need to be met.

GENERAL GARNISHMENT EXEMPTIONS
Greater of 75% or amount each wk. = to 40 x fed. min. hourly wage

COLLECTION AGENCY BOND & LICENSE

Bond: $5,000 minimum - based on volume
License: Yes
Fee:
- $500 - original collection agency or branch
- $300 - renewal collection agency or branch
- $100 - examination fee for manager's license
- $50 - 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.

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STATE: NEW YORK

INTEREST RATE

Legal: 16%
Judgment: 9%

STATUTE OF LIMITATIONS (IN YEARS)

Open Acct.: 6
Written Contract: 6
Domestic Judgment: 20 (1 0 yr. renewable lien)
Foreign Judgment: 20 (1 0 yr. renewable lien)

BAD CHECK LAWS (CIVIL PENALTY)
Face value of check plus two times check amount up to a maximum of $400 on NSF or $750 on "no account" (Demand prescribed by law). GEN.OB.1.1-104

GENERAL GARNISHMENT EXEMPTIONS
90% of earnings, except 1st $127.50 wk. wholly exempt.

COLLECTION AGENCY BOND & LICENSE

Bond: No
License: No
Fee: No
Buffalo: $5,000 Bond - $50 fee
NYC: License - $150 - 2 yr. fee

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STATE: NORTH CAROLINA

INTEREST RATE

Legal: 8%
Judgment: 8%

STATUTE OF LIMITATIONS (IN YEARS)

Open Acct.: 3
Sale of Goods: 4
Written Contract: 3
Domestic Judgment: 10
Foreign Judgment: 10

BAD CHECK LAWS (CIVIL PENALTY)
30 day written demand lesser of $500 or 3x check amount, but not less than $100.

GENERAL GARNISHMENT EXEMPTIONS
100% of last 60 days' earnings for family support. Garnishment only by political subdivisions for taxes, ambulance fees, etc.

COLLECTION AGENCY BOND & LICENSE

Bond: $5,000 to $50,000
License: Yes
Fee: $500
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 in-state clients.

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STATE: NORTH DAKOTA

INTEREST RATE

Legal: 6%
Judgment: 12%

STATUTE OF LIMITATIONS (IN YEARS)

Open Acct. for services: 6
Sale of Goods: 4
Written Contract: 6
Domestic Judgment: 10 renewable
Foreign Judgment: 10 renewable

BAD CHECK LAWS (CIVIL PENALTY)
Amount due, collection fees of $20, and $100 or 3x check whichever is less.

GENERAL GARNISHMENT EXEMPTIONS
Greater of 75% or amount each wk. = to 40 x fed. min. hourly wage. Plus $20.00 each household dependent.

COLLECTION AGENCY BOND & LICENSE

Bond: $20,000
License: Yes
Fee: $200
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".

[TOP]

STATE: OHIO

INTEREST RATE

Legal: 10%
Judgment: 10%

STATUTE OF LIMITATIONS (IN YEARS)

Open Acct.: 4
Sales Contract (UCC2-725)
Written Contract: 15
Domestic Judgment: 21 renew every 5
Foreign Judgment: 21 renew every 5

BAD CHECK LAWS (CIVIL PENALTY)
The greater of $200 or three times the amount of check and attorney fees (no maximum)

GENERAL GARNISHMENT EXEMPTIONS
See federal law. Garnishment limited to once a month per employee.

COLLECTION AGENCY BOND & LICENSE

Bond: No
License: No
Fee: No

[TOP]

STATE: OKLAHOMA

INTEREST RATE

Legal: 6%
Judgment: 4% over U.S. Treasury Bill Rate of previous year. (1996 = 9.55% 1997 = 9.15%)

STATUTE OF LIMITATIONS (IN YEARS)

Open Acct.: 3
Written Contract: 5
Domestic Judgment: 5 renewable
Foreign Judgment: 3

BAD CHECK LAWS (CIVIL PENALTY)
N/A

GENERAL GARNISHMENT EXEMPTIONS
State law: 75% of earnings exempted, more if hardship established. All federal exemptions apply.

COLLECTION AGENCY BOND & LICENSE

Bond: No
License: No
Fee: No

[TOP]

STATE: OREGON

INTEREST RATE

Statutory + Judgment: 9% simple interest per annum (Unless specified by contract)

STATUTE OF LIMITATIONS (IN YEARS)

Open Acct.: 6
Sale of Goods: 6 (4 yrs UCC Transaction)
Written Contract: 6
Domestic Judgment: 10 - Renewable at 10
Foreign Judgment: 10

BAD CHECK LAWS (CIVIL PENALTY)
Can recover reasonable attorney fees & statutory damages of three times the amount of the NSF check plus$500 if demand letter is sent to debtor 30 days before suit is filed.

GENERAL GARNISHMENT EXEMPTIONS
75% of disposable earnings or 40 x fed. min. hourly wage.

COLLECTION AGENCY BOND & LICENSE

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.

[TOP]

STATE: PENNSYLVANIA

INTEREST RATE

Legal: 6%
Judgment: 6%

STATUTE OF LIMITATIONS (IN YEARS)

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.

BAD CHECK LAWS (CIVIL PENALTY)
After demand and judgment triple damages in amount equal to $1 00 or 3 times the check amount whichever is greater up to $500.

GENERAL GARNISHMENT EXEMPTIONS
100%of wages, certain pensions, retirement accounts & Keogh plan under certain circumstances, and $300.

COLLECTION AGENCY BOND & LICENSE

Bond: No
License: No
Fee: No

[TOP]

STATE: RHODE ISLAND

INTEREST RATE

Legal: 12%
Judgment: 12%

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 & treble damage up to $1000

GENERAL GARNISHMENT EXEMPTIONS
See federal law.

COLLECTION AGENCY BOND & LICENSE

Bond: No
License: No
Fee: No

[TOP]

STATE: SOUTH CAROLINA

INTEREST RATE

Legal: 8.75%
Judgment: 14%

STATUTE OF LIMITATIONS (IN YEARS)

Open Acct.: 3
Written Contract: 3
Domestic Judgment: 10
Foreign Judgment: 10

BAD CHECK LAWS (CIVIL PENALTY)
Reasonable court costs amount of check& damages up to $500 or 3x check amount whichever is smaller

GENERAL GARNISHMENT EXEMPTIONS
100%

COLLECTION AGENCY BOND & LICENSE

Bond: No
License: Yes - all business
Fee: No
Exemption for out-of-state collectors: License required for in-state agency only.

[TOP]

STATE: SOUTH DAKOTA

INTEREST RATE

Legal: 12%
Judgment: 10%

STATUTE OF LIMITATIONS (IN YEARS)

Open Acct.: 6
Sale of Goods: 4
Written Contract: 6
Domestic Judgment: 20
Foreign Judgment: 10

BAD CHECK LAWS (CIVIL PENALTY)
N/A

GENERAL GARNISHMENT EXEMPTIONS
20% of the individuals disposable earnings for a 60 day period

COLLECTION AGENCY BOND & LICENSE

Bond: No
License: No
Fee: No

[TOP]

STATE: TENNESSEE

INTEREST RATE

Legal: 10%
Judgment: 10% (or contract rate) (varies with type of transaction)

STATUTE OF LIMITATIONS (IN YEARS)

Open Acct.: 6
Written Contract: 6
Domestic Judgment: 10
Foreign Judgment: 10

BAD CHECK LAWS (CIVIL PENALTY)
Treble damages up to $500 + 10% interest & reasonable service charges, atty's fees, & court costs.

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 employee
- $20,000 5-9 employee
- $25,000 10 or more
License: Yes
Fee:
- $600 - Original
- $350 - Renewal
- $25 - 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.

[TOP]

STATE: TEXAS †

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%

STATUTE OF LIMITATIONS (IN YEARS)

Open Acct.: 4
Written Contract: 4
Domestic Judgment: 10 (Renewable)
Foreign Judgment: 10 (Renewable)

BAD CHECK LAWS (CIVIL PENALTY)
N/A

GENERAL GARNISHMENT EXEMPTIONS
100% of Wages

COLLECTION AGENCY BOND & LICENSE

Bond: Yes
License: No
Fee: No

Always consult counsel to charge interest - Texas has very onerous usury laws & penalties.

[TOP]

STATE: UTAH

INTEREST RATE

Legal: 7.35%
Judgment: Contract rate or Federal Judgment Rate

STATUTE OF LIMITATIONS (IN YEARS)

Open Acct.: 4
Written Contract: 6
Domestic Judgment: 8
Foreign Judgment: 8

BAD CHECK LAWS (CIVIL PENALTY)
Certified statutory bad check notice must be sent. Amount due, interest, court costs, reasonable attorney's fees, plus $15 bad check fee.

GENERAL GARNISHMENT EXEMPTIONS
$142.50 of disposable earnings for wages paid weekly.

COLLECTION AGENCY BOND & LICENSE

Bond: $10,000
License: Yes
Fee: Varies by City and County.

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STATE: 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, amount of check, aftorney's fees, damage of $50. (Notices required)

GENERAL GARNISHMENT EXEMPTIONS
75% of earning above minimum wage or what is necessary to live.

COLLECTION AGENCY BOND & LICENSE

Bond: No
License: No
Fee: No

[TOP]

STATE: VIRGINIA

INTEREST RATE

Legal: 8%
Judgment: 9% or contract rate whichever is higher

STATUTE OF LIMITATIONS (IN YEARS)

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

BAD CHECK LAWS (CIVIL PENALTY)
Lesser of $250 or three times check amount

GENERAL GARNISHMENT EXEMPTIONS
See federal law

COLLECTION AGENCY BOND & LICENSE

Bond:$5000
License: Depends on Locality
Fee: No

[TOP]

STATE: WASHINGTON †

INTEREST RATE

Legal: 12%
Judgment: 12%

STATUTE OF LIMITATIONS (IN YEARS)

Open Acct.: 3
Written Contract: 6
Domestic Judgment: 10
Foreign Judgment: 10

BAD CHECK LAWS (CIVIL PENALTY)
Lesser of check amount or 12% interest, collection costs up to $40. If taken to court, reasonable attorney's fees, 3 x value, or up to $300. Now have 6 years to enforce a bad check.

GENERAL GARNISHMENT EXEMPTIONS
Greater of 75% or $64 wk. (40 x state min. hourly wage).

COLLECTION AGENCY BOND & LICENSE

Bond: $6000 general, $4000 specialty
License: Yes
Fee:
- $100 - Investigation
- $100 - Original
- $100 - Renewable
- $50 - 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 in-state trust accounts if they don't have in-state client. Bond is not required if held in home state.

[TOP]

STATE: WEST VIRGINIA

INTEREST RATE

Legal: 6%
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 up to $10. If check is under $500.00 = misdemeanor. Over $500.00 = felony.

GENERAL GARNISHMENT EXEMPTIONS
See West Va code 38-5A-3-Employees withhold 20% of disposable income or 30x the minimum hourly rate, whichever is less. Other exemptions apply.

COLLECTION AGENCY BOND & LICENSE

Bond: $5,000
License: Yes - Franchise Reg. Cert.
Fee: $15 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.

[TOP]

STATE: WISCONSIN

INTEREST RATE

Legal: 5%
Judgment: 12%

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 actual damages + exemplary damages up to three times value of check. Limited to $300.

GENERAL GARNISHMENT EXEMPTIONS
80% of net pay.

COLLECTION AGENCY BOND & LICENSE

Bond: $15,000 min.
License: Yes
Fee:
- $1000 - Investigation
- $200 - Annual
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.

[TOP]

STATE: WYOMING

INTEREST RATE

Legal: 7%
Judgment: contract rate or 10% judgment rate

STATUTE OF LIMITATIONS (IN YEARS)

Open Acct.: 8
Written Contract: 10
Domestic Judgment: 5
Foreign Judgment: 5

BAD CHECK LAWS (CIVIL PENALTY)
Double the face amount plus damages equal to collection cost and reasonable attorney fees.

GENERAL GARNISHMENT EXEMPTIONS
See federal law for consumer credit sale, lease or loan. Up to 65% for child support arrearage.

COLLECTION AGENCY BOND & LICENSE

Bond: $10,000
License: Yes
Fee:
- $200 - Original
- $100 - Renewal
- $100 - 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.

[TOP]

PUERTO RICO

INTEREST RATE

Legal: 9.25% changes every 6 months (6/30/97)
Judgment: It is Regulated by the Commissioner of the Board of Financial institutions every 6 months.

STATUTE OF LIMITATIONS (IN YEARS)

Open Acct.: 3
Merchandise Open Acct.: 3
Written Contract: 15
Mortgage: 20
Domestic Judgment: 15
Foreign Judgment: 15

BAD CHECK LAWS (MISDEMEANOR)
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:$5000
License: Yes
License Fee:
- $100 - Original
- $100 - Branch Office
- $100 - Renewable
- $100 - Investigation

† - community property states