The information on this page only applies to payday loan, cash advance and check cashing businesses.
If you have questions about collecting bad checks or other accounts for your payday loan or check cashing business, please contact me (Brad Price) at 574-875-9994 or toll-free at 1-888-439-2723. You may also reach me by e-mail.
All submitted checks from payday loan stores or check cashing businesses (whether NSF, stop payment or closed account) are split between NorthStar and a payday loan or check cashing service. NorthStar offers an even 50/50 split of all it collects no matter what type of check (as stated in the final paragraph this split can also include accruing interest on an unpaid account). This service is offered through a separate but close ally of NorthStar (Equinox Collection Services).
Equinox already collects for several payday loan and check cashing businesses. It has found that it can actually increase its collection success for this industry by immediately engaging in its most aggressive (and most costly) check collection techniques. Thus, while payday loan and check cashing services do not receive NorthStar's normal service on NSF checks (100% back plus 25% of the state bad check fee), payday loan and check cashing businesses do have a higher percentage of their checks collected and this means a better overall success rate.
Equinox will spend up to eighteen months collecting payday loan and check cashing debt if necessary. If it fails to collect, it absorbs all the collection costs. Equinox uses a proven bad check collection process that collects more than its competitors for this specialized and difficult to collect for industry. Equinox's bad check collection efforts include collection phone calls, District Attorney intervention, National Check Network reporting, credit bureau reporting, wage garnishment, and skip tracing when that is necessary.
Unless you plan to outsource your bad checks to a collection attorney (which is often time-consuming and expensive), the service from Equinox stands ready to help you collect as much as possible from your bounced checks. Existing checks are accepted for collection and you may sign up on-line for this service.
If your payday loan business has a signed agreement with your customers stating your interest rate and loan arrangements, you may have the option of adding accruing interest to the value of the bounced check. If you decide to use this choice, please use the fillable Payday Loan/Cash Advance Collection Agreement Form. Once this authorization is filled out and faxed in you will be allowed to quickly and easily upload your accounts on-line or arrangements can be made to receive your data electronically if you have it stored that way.
