Bill reinforces NSF check collection tactics

California prosecutors and retailers are pushing a bill that would legitimize the outsourcing of controversial bad-check restitution programs to private companies and increase fees the firms can charge people who bounce checks.

The measure, which is opposed by consumer groups, is heading toward what promises to be a contentious debate Tuesday before the Assembly Public Safety Committee.

The California District Attorneys Association is sponsoring the bill, AB 2606 by Assemblyman Bill Emmerson, R-Rancho Cucamonga.

Supporters say the bill will ensure the viability of programs that recover millions of dollars for businesses, offer people a way to avoid court, save tax dollars and help prosecutors focus resources on higher priority cases.

Opponents charge the private companies behind the program are little more than debt collectors renting the name of the local district attorney to scare people into participating in programs that charge excessive fees.

Source: The Press Democrat