Legal Question in Consumer Law in Maryland

Re: responsability for bounced checks

There could be criminal penalties for bouncing checks, so you might be glad to avoid that kind of trouble and just pay up. You could ask the law firm upon what legal basis you owe them an attorney fee, and to get it in writing.

Re: responsability for bounced checks

A negotiable instrument is an unconditional promise to pay. If it can be shown that you wrote the check without such, criminal charges may lie. Whether such charges would be pursued is a matter for the vendor to decide.

Now the to the technical matters. If the law firm is acting as a collection agent rather than a holder in due course (i.e., a purchaser of the instrument for consideration or value), then the ability of the law firm to collect is limited by the debt collection law.

The right of a collection agent to collect on the check may be cut off where notice of dishonor was not provided. In your facts you say you received such notice and made sure that funds where available to pay upon re-presentment of the check.

You should have notified the payee as to this effect. Even if you did so, the payee had a right to collect upon its presentment for payment. But then, tell the vendor that you may never present payment for any of it's goods (i.e., pizza) whether by cash or check if they cannot accomodate you. Unfortunately your area appears to be serviced by a franchise without the assistance of the corporate office for collection. A small businessperson sometimes makes rash decisions.

As to your mention of dates, generally the statute of limitation, as set by the Uniform Commercial Code, is 6 years of the date of the note.

Nonetheless, the attorney's fee appears excessive and you should not tolerate such. A customary fee for collection is as you stated. Pay the vendor what it is owed. Tell the attorney you will pay a reasonable cost of collection unless he/she can substantiate that you are liable otherwise. See my other responses regarding accord and satisfation if you desire further information.

I am a general practice attorney located in Howard County and am available to assist you or others that you may refer me to. My fees are reasonable. Please feel free to contact me.

G. Joseph Holthaus

(410) 799-9002