Text: SSB00144 Text: SSB00146 Text: SSB00100 - SSB00199 Text: SSB 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 surcharge 1 8 shall not be assessed against the maker if the reason for the 1 9 dishonor of the instrument is that the maker has stopped 1 10 payment pursuant to section 554.4403. 1 11 Sec. 2. NEW SECTION. 554.3512 HOLDER'S RECOURSE FOR 1 12 DISHONOR. 1 13 The holder of a dishonored check, draft, or order may 1 14 assess against the maker of that check, draft, or order a 1 15 surcharge of not more than the greater of twenty dollars or 1 16 five percent of the face value of the check. The surcharge 1 17 authorized by this section shall not be assessed unless the 1 18 holder clearly and conspicuously posts a notice at the usual 1 19 place of payment, or in the billing statement of the holder, 1 20 stating that a surcharge will be assessed and the amount of 1 21 the surcharge. However, the surcharge shall not be assessed 1 22 against the maker if the reason for the dishonor of the check, 1 23 draft, or order is that the maker has stopped payment pursuant 1 24 to section 554.4403. 1 25 Sec. 3. NEW SECTION. 554.3513 CIVIL REMEDY FOR DISHONOR. 1 26 1. In a civil action against a person who makes a check, 1 27 draft, or order, which has been dishonored for lack of funds 1 28 or credit or because the maker has no account with the drawee, 1 29 the plaintiff may recover from the defendant damages triple 1 30 the amount for which the dishonored check, draft, or order is 1 31 drawn. However, damages under this section shall not exceed 1 32 by more than five hundred dollars the amount of the check, 1 33 draft, or order and may be awarded only if all of the 1 34 following apply: 1 35 a. The plaintiff made written demand by restricted 2 1 certified mail of the defendant for payment of the amount of 2 2 the check, draft, or order not less than thirty days before 2 3 commencing the action. 2 4 b. The defendant has failed to tender to the plaintiff, 2 5 prior to commencement of the action, an amount of money not 2 6 less than the amount demanded. 2 7 c. The plaintiff clearly and conspicuously posted a notice 2 8 at the usual place of payment, or in a billing statement of 2 9 the plaintiff, stating that civil damages pursuant to this 2 10 section would be sought upon dishonorment. 2 11 2. In an action for damages pursuant to subsection 1, if 2 12 the court or jury determines that the failure of the defendant 2 13 to satisfy the dishonored check, draft, or order is due to 2 14 economic hardship, the court or jury may waive all or part of 2 15 the allowable civil damages. However, if the court or jury 2 16 waives all or part of the civil damages, the court or jury 2 17 shall render judgment against the defendant in the amount of 2 18 the dishonored check, draft, or order and the actual costs 2 19 incurred by the plaintiff in bringing the action. 2 20 3. This section does not apply if the reason for the 2 21 dishonor of the check, draft, or order is that the maker has 2 22 stopped payment pursuant to section 554.4403 because of a bona 2 23 fide dispute between the maker and the holder relating to the 2 24 consideration for which the check, draft, or order was given. 2 25 4. In actions brought pursuant to this section, no 2 26 additional award pursuant to section 625.22 shall be made. 2 27 EXPLANATION 2 28 This bill provides for remedies of a holder of a financial 2 29 instrument. First, the bill amends the consumer credit code, 2 30 and specifically section 537.2501, relating to charges 2 31 involving consumer credit transactions. A consumer credit 2 32 transaction includes a consumer credit sale, consumer loan, a 2 33 refinancing or consolidation of a consumer credit sale or 2 34 consumer loan, a consumer lease, or a consumer rental purchase 2 35 agreement. The current law provides that a surcharge of not 3 1 more than $10 may be charged for each dishonored payment 3 2 instrument. The bill increases the amount to $20 or 5 percent 3 3 of the amount of the transaction, whichever is greater. 3 4 The bill also amends the uniform commercial code, and 3 5 specifically article 3, part 5, which relates to the dishonor 3 6 of negotiable instruments. The bill provides that the holder 3 7 of a dishonored check may assess against the maker of that 3 8 check a surcharge of not more than the greater of $20 or 5 3 9 percent of the face value of the check. The surcharge cannot 3 10 be assessed unless the holder clearly and conspicuously posts 3 11 a notice at the usual place of payment, or in the billing 3 12 statement of the holder, stating that a surcharge will be 3 13 assessed and the amount of the surcharge. 3 14 The bill provides that in a civil action against a person 3 15 who makes a check, draft, or order which has been dishonored 3 16 for lack of funds or credit or because the maker has no 3 17 account with the drawee, the plaintiff may recover from the 3 18 defendant damages triple the amount for which the dishonored 3 19 check, draft, or order is drawn. The bill provides that the 3 20 total amount of damages cannot exceed $500 more than the 3 21 amount of the check, draft, or order. The damages are 3 22 contingent upon a number of conditions. First, the plaintiff 3 23 must have made written demand by restricted certified mail of 3 24 the defendant within 30 days before commencing the action; the 3 25 defendant must have failed to pay the plaintiff the amount of 3 26 money demanded; and the plaintiff must have clearly and 3 27 conspicuously posted a notice at the usual place of payment, 3 28 or in a billing statement. The bill provides that a court may 3 29 waive damages if the check was dishonored due to economic 3 30 hardship. However, the court must render judgment against the 3 31 defendant in the amount of the dishonored check, draft, or 3 32 order and the actual costs incurred by the plaintiff in 3 33 bringing the action. 3 34 The bill excuses dishonor in cases where a maker of an 3 35 instrument stops payment. 4 1 LSB 1797SC 76 4 2 da/jw/5
Text: SSB00144 Text: SSB00146 Text: SSB00100 - SSB00199 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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