The Seal of the State of Alaska
  Help    

   
Alaska State Legislature
    Home  |  News  |  Legislators  |  Committees  |  Bills  |  Surveys  |  Archives  |  AchievementsAlaska State Legislature
Alaska State Legislature
Alaska State Legislature
Alaska State Legislature
Alaska State Legislature

Advanced Search
Alaska State Legislature
· Suggest A Link  
Alaska State Legislature
Alaska State Legislature
Alaska State Legislature
· Sen. Con Bunde
Chair
 
· Contact Staff  
· Next Scheduled Meetings  
· Committee Annoucements  
· Committee Minutes  
· Bills Referred to Committee  
· Bills Currently in Committee  
· Bills Sent Out of Committee  
· Press Releases  
· Committee Legislation  
Alaska State Legislature
Alaska State Legislature
23rd Alaska State Legislature
The 23rd Alaska State Legislature
Alaska Senate Labor & Commerce Committee Information from the Chairman

Click image for large 5'' x 7'' portrait
Session:
State Capitol, Room
Juneau, AK 99801-1182
Phone: (907)
Fax: (907) 465-3871
Toll Free: (800) 892-4843
Send Email
Send Public Opinion Message
Subscribe to Newsletter - Privacy Policy

Interim:
716 W. 4th Avenue, Suite 400
Anchorage, AK 99501
Phone: (907) 269-0181
Fax: (907) 269-0184

Bad Check Charge
Sponsor Statement for SB 299
Alaska State Legislature
Alaska State Legislature
Attachments Attachments
 
Last Updated:
February 13, 2004
Jane Alberts
465-4843 (Jan-May)



"This bill proposes to impose a flat fee of $30 for a bounced check ..."
- Sen. Bunde

 

"An Act relating to a charge for a bad check."

SB 299 seeks to clarify AS 09.68.115, the statute that pertains to "bounced checks" and to clarify current law that leaves businesses vulnerable to litigation that questions their costs for collecting on insufficient-funds checks.

Currently this statute does not allow aggrieved creditors or their agents to assess a fixed surcharge on bounced checks. This is problematic as the plaintiff must first give the check writer an opportunity to "make good" on the bounced check plus the costs incurred by the plaintiff up to a maximum of $25, and then they must also keep a separate ledger to track and defend their costs incurred in the collection procedure.

Many states have statutes that allow creditors to assess a statutory penalty for an insufficient-funds check. These fees go up to as high as $40 per check, and some even charge interest rate per year that begins on the date the check was issued.

This bill proposes to impose a flat fee of $30 for a bounced check, which more accurately reflects the cost of collecting on these bad checks and frees the creditor from the burden of having to document "costs incurred" on each bounced check. Currently this fee can be up to, but no greater than $25. It is common practice for banks to assess a flat $25 fee for bad checks and does not require them to send a letter of notification or make a phone call.

Passage of SB 299 will make it less likely for the statute to be challenged and will put Alaska on par with other states that specify a statutory penalty fee for bad checks and lessens the burden currently placed on businesses as they attempt to collect payment for goods they have already provided to their customers.

# # #

 
Attachments:
 
·
Print Text Version
· Acrobat PDF Version
Requires Adobe Acrobat PDF Reader = 1 page(s)
12 KB
 


Sign Up For E-News!

Unsubscribe  Privacy
Alaska State Legislature
· 25th Legislature Info
House Majority
House Minority
Senate Majority
Senate Minority
BASIS
 
· 24th Leg. Special Session Info  
· Oil & Gas Production Tax Information  
· Keyword Search  
· Legislator Districts  
· Photo Table  
· Passed Legislation  
· Past Legislatures  
· More Web Tools  
· Majority Press Staff  
· Information Offices  
Requires Real Audio Player = Adobe PDF Reader  
Requires Real Audio Player = Real Audio Player  
Requires Real Audio Player = MP3 Audio Player  
Alaska State Legislature
Alaska State Legislature
Alaska State Legislature

1 Viewer(s)

Total at this time.
Alaska State Legislature
Alaska State Legislature
   
Alaska State Legislature
Home  |  News  |  Legislators  |  Committees  |  Bills  |  Surveys  |  Archives  |  E-News  |  HelpAlaska State Legislature
Alaska State Legislature
The Official Web Site of the House and Senate Legislative Majorities
for the Alaska State Legislature

To Report Technical Problems or Contact Webmasterse-mail address list