NorthStar works for about 60 days to collect NSF checks and this involves a three step collection process.  They work the person’s bank account for funds, send out multiple collection letters, and report bad check writers to a negative database used by nearly 200,000 businesses including Wal-Mart®.  Most NSF checks can be collected with this process and you would receive the full face value back plus an additional $5-7.50 back per check from the state bad check fee.  This service is completely free to businesses; NorthStar's profit comes from the fee paid by the bad check writer.

PHASE 2 CHECK RECOVERY

If NSF checks cannot be collected in the phase 1 process described above, or you have a stop payment or closed account check, NorthStar offers an optional and intensive secondary collection service through Equinox, a separate but closely allied partner with NorthStar.

Secondary collection efforts include collection phone calls, credit bureau reporting, District Attorney intervention, and possible legal action.  Checks recovered under this program are "split" between NorthStar and its clients.  You receive 50% of the collected bad check fee plus 50% of your check's face value.  Corporate clients usually have sufficient volume of returned checks to receive a higher percentage.

If you choose this service you may let checks go to phase 2 "automatically" or you may be "selective" about second phase collections.  "Automatic" means NorthStar will move checks to phase 2 as appropriate--you do not need to do anything.  If you choose to be "selective," NorthStar will not process a check as a phase 2 item unless you log on to its web site and "select" that check for second phase collection.  If most of your checks are under $250.00, I recommend selecting "automatic."

Feel free to contact me (Casey Jackson) if you have any questions.