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Question from IhatemoneyNov-6

I recently received a summons for court for a $30 bad check i wrote to a grocery store.  I honestly though I had taken care of the matter, but was mistaken. 

I spoke to the collector and he stated to settle it would be $460.  I find this quite a rediculous amount for a $30 check. 

Is there any options or ways to reduce this amount in court or outside.  The collector was very abrubt and basically said pay it or go to court.

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Fallen Nov-6 84305.2

Can't know from here, but I gather you don't have an "account" with this grocery store.  You also don't bother to mention where you are, but we can't divine whether your state has laws that would enable the creditor to go after more than actual reasonable costs related to an insufficient funds issue.  I don't know of any state where the store would be entitled to pursue attorney fees.  It's unclear why they didn't just report it to the police if you hadn't made good on the check, though maybe the store is managed by someone who has a friend in the legal business and they figured he needs the work.  :)

"I spoke to the collector and he stated to settle it would be $460.  I find this quite a rediculous amount for a $30 check."

You don't say what the $430 extra consists of, which would be nice to mention.  Is the "collector" the plaintiff or the plaintiff's attorney?  If not, you're free not to talk with the "collector". 

"Is there any options or ways to reduce this amount in court or outside."

Cannot know from here, but you would not cough up ANY money unless you see something in writing signed by someone in authority that they will be filing a motion to dismiss/withdraw the (presumed) civil action that was filed against you.  Me?  I'd show up in court with a certified check or cash (but you need to figure out what court filing fee and service costs are beforehand, since plaintiff is almost certainly entitled to those) and question the judge as to statutory provision under which the plaintiff is seeking attorney fees (if that's what the $430 is).

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pg1067 Nov-6 84305.3
Chances are your unidentified state has a law that imposes civil penalties for the writing of a bad check and that's why the creditor is seeking over 15 times the amount of the check (the amount probably also includes court costs and other costs that may or may not be recoverable).  For example, in my state, a person who writes a bad check can potentially be on the hook for $1,500 in addition to the amount of the check and court costs.
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Ihatemoney Nov-6 84305.4

I am in the state of Colorado. 

This is the only thing I can find:

Colorado- Three times the amount of such check and in no case less than $100, including reasonable fees

but this would only add to $90.  I'm not quite sure where the rest is going.  legal fees? 

 

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Ihatemoney Nov-6 84305.5
thank you so much for you feed back. that is good advice. 
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Tax_Counsel Nov-6 84305.6
The problem with summaries of bad check laws on many sites is that they are incomplete. That's the case with the summary of Colorado's bad check laws that you found. Colorado Revised Statutes § 13-21-109 provides the civil damages you'd be liable for to the store. It gives the store a choice of 3 remedies, in addition to the face amount of the check, that it may pursue:

1. Actual damages suffered by the store; or
2. A reasonable posted contractual fee of $20, plus as collection costs, 20% of the face amount of the check, but not less than $20; or
3. If certain requirements have been met, three times the face amount of the check, but not less than $100.

Furthermore, IN ADDITION to any of the 3 remedies outlined above, the store is entitled to get court costs and attorney's fees should it prevail in the civil suit. In addition, if it chose option 2 above and won the suit, it would also be entitled to it's actual costs of collection (if it exceeds the 20% provided for in that option.) That could push your final total damages much higher than the amounts provided in the 3 options above. The store may have already incurred legal fees and collection costs that it is tacking on to the check, and if the store must file suit or otherwise expend more effort to collect, expect the fees to continue to pile up. On the other hand, if you won the suit, you'd be entitled to collect attorney's fees from the store. However, if you clearly owed the check, you are not likely to be the winner in the lawsuit.

You can always make a counter-offer and see if the store will take it. If they won't, you either pay what they ask or wait for them to sue you. But if they do sue and you lose, the judgment may be for even more than they are seeking now depending on how much in costs and fees they incurred along the way.

Note, too, that passing bad checks is a possible violation of at least two Colorado criminal statutes, as well.


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Ihatemoney Nov-10 84305.7

Very interesting.  I appreciate the detailed response.  It sounds like I should just pay the $460 and be done with it.  I certainly do not want any criminal records/judgements

It was a honest mistake, and the whole thing is so irritating.  But I do not want any bad records or criminal records.  When I spoke to the collector it sounded as though there is no type of "negotiations of reducing the amount owed unfortunately.  The last two years have been extremely hard financial wise and $460 is a lot of money for me.  Which is why I am seeking advise. 

Thank you all for your kind thoughts and advise.

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