In today’s economy, NSF checks are becoming a fact of life for those in the construction industry. When it comes to your company’s collections problems, however, receipt of NSF checks may not be all that bad.
That’s because nearly every state imposes stiff penalties against those who pass hot checks. What type of penalties you ask? If you’re forced to collect on an NSF check, you’ll likely be entitled to attorneys fees, legal costs and interest, and that’s in addition to statutory liquidated damages that can be as stiff as double the amount of the check.
In all the states where I practice (Oregon, Washington & Louisiana), there exists powerful statutes designed to deter bad checks. If you receive a NSF check, it’s important you follow the procedures of these statutes to ensure you will qualify for the penalties.
Over the past few days, I’ve been contacted by folks about NSF check collections a bit more than usual, and so I spent some time over the weekend drafting short and understandable step-by-step guides on how to collect on a NSF check in these three states.
We published them as Legal Guides over at Avvo.com. Take a look at them here: