Diversion Program Trims Bad Check Writers’ Debt Collection Suit

Nov. 21, 2019, 8:25 PM

A company that runs criminal diversion programs in California failed to shake off unauthorized fee claims under the federal Fair Debt Collection Practices Act by a proposed class of residents who were charged with writing bad checks, in a ruling by a California federal judge.

Diversion programs, established by many California district attorneys, allow check fraud suspects to avoid criminal prosecution if they pay restitution and take a class on financial responsibility, the court said.

There are too many unresolved questions to dismiss the fee allegations against Victim Services Inc. on summary judgment, the U.S. District Court for the Northern ...

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