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Debt collector loses round in legal battle with check-bouncers

Published Friday July 29

A debt-collection company that uses Calif. prosecutors’ authority to go after suspected bounced-check writers must face the debtors’ complaints in open court rather than in private arbitration, a federal judge has ruled.

Calif. law allows district attorneys to designate private companies to run diversion programs for people charged with writing bad checks with the intent to defraud. The program allows debtors to avoid prosecution if they reimburse the victim, take a course in financial responsibility, and pay fees for the class and for each bounced check. The county gets a small percentage of the fees.

Taitelman remarked Thu that the company is complying with the order.

Article length: About 340 words.
Tags: San Mateo
Read more at Sfgate

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