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California Collection Agency

Looking for a commercial California collection agency? AAB provides California or CA commercial debt collection and our commercial agency services are available throughout the United States. We specialize in commercial debt collection and offer other collection related services you may need from a California collection agency.

California is tricky state to retain the collection services of a California collection agency. The state of California does not require a collection agency to be bonded or licensed. This means that basically anyone over legal age can start their own California collection agency. While this may be great for the agency, a client doesn't really know who they are dealing with, unless the prospective agency has been screened and licensed in another state as a responsible collection agency.

Also consider if your unlicensed California collection agency does something stupid, you may all of a sudden be liable for their actions. With AAB you can rest easy because we carry $1 Million in E&O and another $1 million of Liability insurance even though not required by the state of California.

Below you will find summary points on California regulations and laws that may affect debt collection for a California collection agency. Some points should be considered when listing commercial collection files with a California collection agency.

California Collection Laws

NOTE: The California collection information below is summary in nature and subject to change. While we make every effort to insure accuracy, the information below should not be considered legal advice or to be one hundred percent accurate. No warranty is expressed or implied and AAB assumes no liability for its use.

California Collection Interest Rates

California Legal Rate: 7% per annum (Without written contract)
Contract Rate: 10% per annum
Credit Agreement: 21% per annum
Judgment Rate: 10% per annum on principal amount unsatisfied
Usury % Cap for Commercial Loans: Maximum 10%; however, licensed financial institutions may charge more.

A collection agency can only apply or charge interest at the rates above in California.

California Statute of Limitations

Oral Contract: 2 Years
Written Contract: 4 Years
Open Account: 4 Years
Judgment: Action must be commenced within 10 Years

Bad or NSF Check collection charges in California

Service Charge: $25 for first check - $35 for subsequent checks
Numerous notification requirements
After written notice: If NSF check not paid within 30 days of formal notice person liable for 3 times the check to a ceiling of $1500

California Collection Agency Laws

Licensing: NO
Bond: NONE

We hope this information on commercial debt collection useful in your search for a California collection agency. In your travels searching for a collection agency contact us and an AAB professional address any questions you may have about collecting debt in California. You can also request a Quote on the agency services you need with from a California collection agency.