Legal Question in Credit and Debt Law in Utah

What contacts need to be made when collecting a debt?

I need to know what steps a company needs to make in order to collect a debt. My situation is I just received letters from a law firm to collect on some bounced checks. The question I have is that I have never heard from this firm or the company that the check was origionally written to in an attempt to collect for these checks. The checks were written back in August of 1999. I have not had any problems with returned checks since 1999. If they had ever tried to collect they would have been paid. I can find nothing they have sent for over two years. Now they want the check amount plus 150.00 per check. I wanted to know if they needed to make some attempt to collect before sending a letter with all the additional fees. Thanks for your time.


Asked on 4/01/02, 3:18 am

1 Answer from Attorneys
Alvin Lundgren Alvin R. Lundgren, L.C.

Re: What contacts need to be made when collecting a debt?

Apparently you did not regularly balanced your checkbook, otherwise you would have been aware that the check had bounced. Utah law provides statutory fees for dishonored checks. Contact the lawfirm and request - in writing - copies of the dishonored check and the notices which you were sent. The $150 is a settlement offer from the firm in lieu of suing you. When you are convinced that the checks did bounce, offer the firm the amount of the check, plus the service fees. You will probably not be talking to an actual lawyer, but to a collector working for a lawyer. They will want more than the $150 under threat of a lawsuit, I suggest you negotiate.

The lawfirm is required to conform to the Fair Debt Collection Practices Act (FDCPA), which requires them to provide proof of the debt, written notices, and also liimts how they can conduct the collections.

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Answered on 4/02/02, 8:38 am


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