Text: HF00484 Text: HF00486 Text: HF00400 - HF00499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 537.2501, subsection 1, paragraph g, 1 2 Code 1995, is amended to read as follows: 1 3 g. A surcharge of not more thantenfive percent of the 1 4 amount of the face value of the payment instrument or twenty 1 5 dollars, whichever is greater, for each dishonored payment 1 6 instrument provided that the fee is clearly and conspicuously 1 7 disclosed in the cardholder agreement. However, the amount of 1 8 the surcharge shall not exceed twenty dollars unless the 1 9 check, draft, or order was presented twice or the maker does 1 10 not have an account with the drawee. If the check, draft, or 1 11 order was presented twice or the maker does not have an 1 12 account with the drawee, the amount of the surcharge shall not 1 13 exceed fifty dollars. The surcharge shall not be assessed 1 14 against the maker if the reason for the dishonor of the 1 15 instrument is that the maker has stopped payment pursuant to 1 16 section 554.4403. 1 17 Sec. 2. NEW SECTION. 554.3512 HOLDER'S RECOURSE FOR 1 18 DISHONOR. 1 19 1. The holder of a dishonored check, draft, or order may 1 20 assess against the maker of that check, draft, or order a 1 21 surcharge of not more than the greater of twenty dollars or 1 22 five percent of the face value of the check. However, the 1 23 amount of the surcharge shall not exceed twenty dollars unless 1 24 the check, draft, or order was presented twice or the maker 1 25 does not have an account with the drawee. If the check, 1 26 draft, or order was presented twice or the maker does not have 1 27 an account with the drawee, the amount of the surcharge shall 1 28 not exceed fifty dollars. 1 29 2. The surcharge authorized by this section shall not be 1 30 assessed unless the holder clearly and conspicuously posts a 1 31 notice at the usual place of payment, or in the billing 1 32 statement of the holder, stating that a surcharge will be 1 33 assessed and the amount of the surcharge. However, the 1 34 surcharge shall not be assessed against the maker if the 1 35 reason for the dishonor of the check, draft, or order is that 2 1 the maker has stopped payment pursuant to section 554.4403. 2 2 Sec. 3. NEW SECTION. 554.3513 CIVIL REMEDY FOR DISHONOR. 2 3 1. In a civil action against a person who makes a check, 2 4 draft, or order, which has been dishonored for lack of funds 2 5 or credit, after having been presented twice, or because the 2 6 maker has no account with the drawee, the plaintiff shall 2 7 recover from the defendant total damages equaling three times 2 8 the face value of the dishonored check, draft, or order, which 2 9 sum shall include the face value of the check, draft, or 2 10 order. However, total recovery under this section shall not 2 11 exceed by more than five hundred dollars the amount of the 2 12 check, draft, or order and may be awarded only if all of the 2 13 following apply: 2 14 a. The plaintiff made written demand of the defendant for 2 15 payment of the amount of the check, draft, or order not less 2 16 than thirty days before commencing the action. 2 17 b. The written demand notified the defendant that treble 2 18 damages would be sought if the face value of the dishonored 2 19 check was not paid within thirty days of receipt, and was 2 20 received by the defendant through personal service or 2 21 restricted certified mail. 2 22 c. The defendant has failed to tender to the plaintiff, 2 23 prior to commencement of the action, an amount of money not 2 24 less than the face value of the dishonored check, draft, or 2 25 order. 2 26 d. The plaintiff clearly and conspicuously posted a notice 2 27 at the usual place of payment, or in a billing statement of 2 28 the plaintiff, stating that civil damages pursuant to this 2 29 section would be sought upon dishonorment. 2 30 2. In an action for damages pursuant to subsection 1, if 2 31 the court or jury determines that the failure of the defendant 2 32 to satisfy the dishonored check, draft, or order is due to 2 33 economic hardship, the court or jury may waive all or part of 2 34 the allowable civil damages. However, if the court or jury 2 35 waives all or part of the civil damages, the court or jury 3 1 shall render judgment against the defendant in the amount of 3 2 the dishonored check, draft, or order and the actual costs 3 3 incurred by the plaintiff in bringing the action. 3 4 3. This section does not apply if the reason for the 3 5 dishonor of the check, draft, or order is that the maker has 3 6 stopped payment pursuant to section 554.4403 because of a bona 3 7 fide dispute between the maker and the holder relating to the 3 8 consideration for which the check, draft, or order was given. 3 9 4. In actions brought pursuant to this section, no 3 10 additional award pursuant to section 554.3512 or 625.22 shall 3 11 be made. 3 12 5. The plaintiff in a civil action to collect a dishonored 3 13 check, draft, or order brought before the district court 3 14 sitting in small claims shall not request or recover punitive 3 15 or exemplary damages, but may seek the civil damages allowed 3 16 under this section. The plaintiff in a civil action to 3 17 collect a dishonored check, draft, or order in the district 3 18 court not sitting in small claims, may seek punitive or 3 19 exemplary damages if appropriate under chapter 668A, or civil 3 20 damages allowed under this section, but not both. 3 21 6. A violation of this section is an unlawful practice as 3 22 provided in section 714.16, subsection 2, paragraph "a". 3 23 HF 485 3 24 da/pk/25
Text: HF00484 Text: HF00486 Text: HF00400 - HF00499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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