BILL REQ. #: H-4766.2
| State of Washington | 58th Legislature | 2004 Regular Session |
READ FIRST TIME 02/06/04.
AN ACT Relating to dishonored checks; and adding new sections to chapter 62A.3 RCW.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1 (a) If a check as defined in RCW 62A.3-104
is dishonored by nonacceptance or nonpayment and the check is assigned
to a collection agency as defined in RCW 19.16.100, the collection
agency may collect a reasonable handling fee of up to forty-five
dollars for each instrument. If the collection agency or its agent
sends a notice of dishonor as provided by section 2 of this act to the
drawer at the drawer's last known address and the check amount plus the
reasonable handling fee are not paid within thirty-three days after the
sending of the notice of dishonor, then, unless the instrument
otherwise provides, the drawer of the instrument is liable for payment
of interest at the rate of twelve percent per annum from the date of
dishonor, and a cost of collection of forty dollars or the face amount
of the check, whichever is less, payable to the collection agency. In
addition, in the event of court action on the check, the court, after
notice and the expiration of the thirty-three days, shall award
reasonable attorneys' fees, and three times the face amount of the
check or three hundred dollars, whichever is less, as part of the
damages payable to the collection agency. This section does not apply
to an instrument that is dishonored by reason of a justifiable stop
payment order.
(b) Subsequent to the commencement of an action on the check under
subsection (a) of this section but prior to the hearing, the defendant
may tender to the plaintiff as satisfaction of the claim, an amount of
money equal to the face amount of the check, a reasonable handling fee
of up to forty-five dollars, accrued interest, collection costs equal
to the lesser of the face amount of the check or forty dollars, and the
incurred court costs, service costs, and statutory attorneys' fees.
(c) Nothing in this section precludes the right to commence action
in a court under chapter 12.40 RCW for small claims. Nothing in this
section prevents a collection agency or its agent from charging the
drawer lesser amounts than the amounts provided for in this section.
NEW SECTION. Sec. 2 (a) If a check is assigned to a collection
agency as defined in RCW 19.16.100 and the collection agency or its
agent sends a notice of dishonor, the notice of dishonor shall be sent
by mail to the drawer at the drawer's last known address. The drawer
will be presumed to have received the notice of dishonor not more than
three days from the date it is mailed. The notice shall be
substantially in the following form:
NEW SECTION. Sec. 3 (a) If a notice of dishonor is sent by a
collection agency or its agent under section 2 of this act, the person
sending notice shall execute an affidavit certifying service of the
notice by mail. The affidavit of service by mail must be attached to
a copy of the notice of dishonor and must be substantially in the
following form:
NEW SECTION. Sec. 4 No interest, collection costs, and
attorneys' fees, except handling fees, are recoverable on any
dishonored check under the provisions of section 1 of this act where a
collection agency or its agent, employee, or assign has demanded:
(1) Interest or collection costs in excess of that provided by
section 1 of this act;
(2) Interest or collection costs prior to the expiration of
thirty-three days after the mailing of notice of dishonor, as provided
by section 1 of this act; or
(3) Attorneys' fees other than statutory attorneys' fees without
having the fees set by the court, or any attorneys' fees prior to
thirty-three days after the mailing of the notice of dishonor, as
provided by section 1 of this act.
NEW SECTION. Sec. 5 Sections 1 through 4 of this act are each
added to chapter