Bad Check LawColorado law imposes significant penalties on bounced checks so it is important that you read all collection letters and act quickly. A business does not have to run a bounced check through your bank account twice and does not have to contact you directly for payment. You must pay the check amount, plus $20 if the business posted or contracted for an NSF fee, and the greater of $20 or 20% of the check amount as collection costs. This is in addition to your own bank charges. On a $50 NSF check, you could owe a total of $90 - the $50 check, $20 to the business, and $20 to the collection agency. The total amount due must be received by the agency within 15 days from when it mails you a certified letter, not when you received the letter. This may leave you only a few days to pay the full amount due. If you miss the 15 day deadline, the collection agency may sue you in court for 3 times the check amount plus attorneys fees and court costs. This usually adds at least $200 to the debt. A $50 NSF check could then cost $350 or more. |