Bill Would Grant Collection Agencies the Right to use Small Claims Court

Allowing collection agencies to use small-claims courts to chase debtors would weaken the courts’ emphasis on informal, speedy justice, a judge said Tuesday in arguing against a bill to expand their role.

“I don’t think that’s why small-claims courts were designed,” said Benny Graff, who is the chief administrative judge in the South Central Judicial District, a 12-county area in south-central North Dakota.

Rep. Lawrence Klemin, R-Bismarck, has introduced legislation that would allow a third party, such as a collection agency, to sue in small claims court on behalf of a business. The House Judiciary Committee held its first hearing on the bill Tuesday.

The legislation would allow collection agencies to group cases against the same bad-check writer and sue him or her in small-claims court. Klemin said he introduced the measure on behalf of the North Dakota Collectors Association.