SUMMARY OF COLLECTION LAWS

*Denotes States having community property laws.

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) - Actual Bank charges GENERAL GARNISHMENT EXEMPTIONS - 75% of wages are exempt from garnishment COLLECTION AGENCY BOND & LICENSE - Bond: No - License: No - Fee: $25 if the Population is under 20,000 or $100 if the Population is over 20,000
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 checks. 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
* 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
ARKANSAS INTEREST RATE - Legal: 6% or 5 points above the Fed. discount rate Judgment 5 points above the Federal discount rate or 10% per annum whichever is less 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 the 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/$1500 Branch - License: Yes - Fee: $125 -$5 each employee
* 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 necessities of life. COLLECTION AGENCY BOND & LICENSE - No license or bond required.
COLORADO INTEREST RATE - Legal: 8% - Judgment 8% (or higher if specified in contract or note) STATUTE OF LIMITATIONS (IN YEARS) - Open Acct: 6 - 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: $10,000 - 20,000 - License: Yes - Fee: Determined by collection agency board
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. mm. hourly wage, whichever is less. COLLECTION AGENCY BOND & LICENSE - Bond: $5000 - License: Yes - Fee: $200 Yearly $50 Investigation
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 tees GENERAL GARNISHMENT EXEMPTIONS - 85% of disposable earnings or disposable earnings minus 127.50 weekly according to schedule. COLLECTION AGENCY BOND & LICENSE - Bond: No - License: Merc. License - Fee: $50 Yearly
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
FLORIDA INTEREST RATE - Legal: 10% - Judgment 10% or contractual STATUTE OF LIMITATIONS (IN YEARS) - Open Acct: 4 - Written Contract 5 - Domestic Judgment 7 Renewable - Foreign Judgment Sit 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
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 ot $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
HAWAII  INTEREST RATE - Legal: 10% - Judgment 10% (no written contract) STATUTE OF LIMITATIONS (IN YEARS) - Sale of Goods: 4 - 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 $100 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" - Fee: $25- Application - $80- Registration $80 - Renewal - $50- Compliance = $155 for 2 years
* 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: Greater of $5,000 or 2 x average monthly net collections previous year plus $2000 to indemnify state for costs - License: Yes - Fee: $100 - permit fee - $50 - renewal
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 ted. mm. hourly wage, whichever is greater. COLLECTION AGENCY BOND & LICENSE - Bond: $25,000 - License: Yes - Fee: $75 - Original $60 - Renewal
INDIANA INTEREST RATE - Legal: 8% - Judgment 8% STATUTE OF LIMITATIONS (IN YEARS) - Open Acct: 6 - Written Contract for payment of money -(executed before 9/1/82): 10 (executed after 8/31/82): 6 - Written contract (other than payment of money): 10 - Domestic Judgment 10 - 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 25% of triple check amount + attorney tees and interest at 8% per annum. GENERAL WAGE GARNISHMENT EXEMPTIONS - 75% of disposable earnings for workweek or the amount of 30 x ted. mm. hourly wage, whichever is greater. COLLECTION AGENCY BOND & LICENSE - Bond: $5000 each office - License: Yes - Fee: $50 plus $5 per annum, each unlicensed employee $15 branch office
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 next year - Foreign Judgment 10 - can be renewed in the next 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
KANSAS INTEREST RATE - Legal: 10% - Judgment 4 percentage points above the discount rate 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, $500 or $100 whichever is greater plus attorney tees GENERAL GARNISHMENT EXEMPTIONS - See federal law. Plus other personal property, benefit exemptions, and homestead COLLECTION AGENCY BOND & LICENSE - Bond: No - License: No - Fee: No
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 -25% of disposable income or 30 times the federal minimum hourly wage (whichever is less) COLLECTION AGENCY BOND & LICENSE - Bond: No - License: No - Fee: No 
LOUISIANA INTEREST RATE FOR 1996 - 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. mm. hourly wage. COLLECTION AGENCY BOND & LICENSE - Bond: Yes - $10,000 - License: Yes - Fee: $200 Initial I $200 Investigation I $200 Renewal $100 Branch I $100 Branch Renewal
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 judgment only. COLLECTION AGENCY BOND & LICENSE - Bond: Yes- Per Superintendent - License: Yes - Fee: $400 Yearly
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% of 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. COLLECTION AGENCY BOND & LICENSE - Bond: $5,000 each office - License: Yes - Fee: $150 each office
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 - Contract 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 - $l25 a week COLLECTION AGENCY BOND & LICENSE - Bond: $10,000 -$25,000 - License: Yes - Fee: Determined by commissioner
MICHIGAN INTEREST RATE - Legal: 5% - Judgment 6.953 changes semi-annually - Usuary limit 25% STATUTE OF LIMITATION (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
MINNESOTA INTEREST RATE - Legal: 6% - Judgment 5% (Changes Yearly) Business or Agricultural Loan: 4½% 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) - Amount due, $100 penalty, judgment interest rate, reasonable attorneys fees (if check over $1250), $15 service charge. GENERAL GARNISHMENT EXEMPTIONS - Greater of 75% or amount to 40 x fed. mm. hourly wage. COLLECTION AGENCY BOND & LICENSE - Bond: $20,000 - License: Yes - Fee: $1,000 - Initial $400 - Annual $10 - Per Collector
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 $100 or more - not more than $1000 fee + court may impose fee of no more than 85% of the check value. Criminal penalties & restitution apply. GENERAL GARNISHMENT EXEMPTIONS - See federal law. COLLECTION AGENCY BOND & LICENSE - Bond: No - License: City - Business - Fee:$15-$50
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 10 years)
Foreign Judgment: 10 (Revived every 10 years)

Bad Check Laws (civil penalty)
Three times face amount owed plus attorney's 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
Contact: Secretary of State
600 W. Main Street
Jefferson City, MO 65101
Phone: (573) 751-4936
email:
SOSMain@sosmail.state.
mo.us
web: www.sos.mo.gov
/default.asp

MONTANA

 

Interest Rate
Legal: 10%
Judgment: 10%
A binding written agreement may provide for interest of 15% or 6% above prime (whichever is more).
Exemption to Interest Law: Short Term Lenders (90 days or less) can receive high interest - 300%-400% APR
Also subject to exception are regulated lenders.

Statute of Limitations (in years)
Contract not in Writing: 5
Written Contract: 8
Domestic Judgment: 10 (District Court)
(Realty lien for only 10 in District Court)
Justice of Peace Judge: 10
Tort Claim (Subrogation) Prop & Personal: 3

 

Bad Check Laws (civil penalty)
$100 minimum or 3 times face value up to $500 plus face value of check
and under UCC the value of the check plus $30 service charge per check.

 

General Garnishment Exemptions
See federal law. State law provides for executions
 
NEBRASKA

Interest Rate
Legal: 12% per written instrument or contract rate
Judgment: 2% above the bond investment yield of the 28 week U.S. Treasury bill

 

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
Contact: Collection Agency Licensing Board
Secretary of State
2300 State Capitol Building
Lincoln, NE 68509
Phone: (402) 471-8606 • Fax: (402) 471-2530
email: sos04@nol.org
web:
www.sos.state.ne.us/collections

/collecti.htm
NEVADA

Interest Rate
Contract rate always prevails. If no contract:
Pre-judgment: Statutory rate = 2% Over Prime
as determined by 3 largest NV banks and adjusted every 6 months.
Judgment: Same as pre-judgment

Statute of Limitations (in years)
Open Acct.: 4
Written Contract: 6
Lease: 6
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
Wages no more than 25% of Disposable earnings for each week or
30 times federal minimum hourly wage (whichever is less) except for support orders.

Collection Agency Bond & License
Contact: Nevada Financial Institutions Division
406 E. 2nd Street, Suite 3

Carson City, NV 89701-4758
Phone: (775) 684-1830 • Fax: (775) 684-1845
web: www.fid.state.nv.us

 

NEW YORK

Interest Rate
Legal: 9%
Judgment: 9%
Usury: 16%

 

Statute of Limitations (in years)
Open Acct.: 6
Sale of Goods: 4
Written Contract: 6
Domestic Judgment: 20 (10 yr. renewable lien)
Foreign Judgment: 20 (10 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. (Conspicuous posting at time & place of sale required)

General Garnishment Exemptions
90% of earnings, except 1st $154.50 wk. wholly exempt (only if the person earns minimum wage).

 

Collection Agency Bond & License
Contact: Secretary of State
41 State Street
Albany, NY 12231-0001
Phone: (518) 474-0050 • Fax: (518) 474-4765
email:info@dos.state.ny.us
web: www.dos.state.ny.us

 

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
Contact: North Carolina Dept. of Insurance
Agent Services Division
Box 26267
Raleigh, NC 27603
Phone: (919) 733-7487
web: www.ncdoi.com

 

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 $25, and civil penalty by civil action for lesser of $200 or 3X check. Effective 08/01/01.

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
Contact: Timothy J. Karsky, Commissioner
Dept. of Financial Institutions
2000 Schafer Street, Suite G
Bismarck, ND 58501-1204
Phone: (701) 328-9933
email:dfi@state.nd.us
web: www.discovernd.com/dfi
OHIO

Interest Rate
Legal: 10%
Judgment: 10% (unless written contract)

Statute of Limitations (in years)
Open Acct.: 6
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. Effective 3/30/99 Ohio allows continuing garnishments.

Collection Agency Bond & License
Contact:
Secretary of State
Client Service Center
30 East Broad Street