Arkansas Commercial Collection Agency
Are you a resident or corporate employee in Arkansas? If so, we hope you will find the following summary of collection laws and state statistics helpful with learning. Arkansas is home to several different types of laws including state corporation laws, deceptive trade practices, consumer laws, and more.
While Arkansas consumers can be protected from certain debt collectors via a licensing statute, it doesn’t include protection from original creditors (ProtectingConsumerRights.com). This can complicate how collection agencies like Prestige Services, Inc., (PSI) reach out to debtors on behalf of creditors; fortunately PSI has outstanding customer service and appliance with state laws to reach successful outcomes.
There are several different factors and aspects involved with debt collections and state credit statistics. According to FindLaw.com, one of the biggest codes is Arkansas’ Deceptive Trade Practice Laws; which gives the attorney general authority to prosecute cases and file an order for an injunction to stop the offending practices. Offending practices include making false/damaging claims about other businesses, and promoting an item or service without the intention of following through (FindLaw.com).
With the Deceptive Trade Practice Law, Fair Debt Collection Act, and other laws, Arkansas has developed a strong economy in recent years. In 2015, total estimated government spending was more than $23 billion, with almost $8,000 in per capita spending. From 2012 numbers, state debt per capita was $12,785 and total state debt was approximately $37.7 billion. (BallotPedia.org)
Below is a summary of other Arkansas collection laws, including the most recent interest rate, statute of limitations, bad check laws, and collection agency bond and license information. These laws are meant to protect Arkansas creditors and debtors, and to ensure the debt collection process maintains an appropriate and legal process.
SUMMARY OF ARKANSAS COLLECTION LAWS*
Legal: 6% or 5 points above the Fed. discount rate Judgment 5 points above the Federal discount rate or 10% per annum whichever
STATUTE OF LIMITATIONS (IN YEARS)
Open Acct: 3 – Written Contract 5 (partial payment stops the statute from running) – Sale of Goods: (UCC-2) – 4 – Domestic
Judgment 10 – Renewable – Foreign Judgment 10
BAD CHECK LAWS (CIVIL PENALTY)
Twice the amount of check – prior to double charge – can start out with $15 charge per NSF check after 30 days.
GENERAL GARNISHMENT EXEMPTIONS
$500 head of family; $200 single. Includes personal property except clothing.
COLLECTION AGENCY BOND & LICENSE
Bond: $5000/$1500 Branch – License: Yes – Fee: $125 -$5 each employee
* These are not comprehensive statutes and therefore PSICollect.com and Prestige Services, Inc. disclaims any liability resulting from reliance by any party upon the legality and accuracy of the contents thereof.
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