SHB 1347 -
By Committee on Financial Institutions, Housing & Consumer
Protection
ADOPTED 04/15/2005
Strike everything after the enacting clause and insert the following:
"NEW SECTION. Sec. 1 (1) If a check as defined in RCW 62A.3-104
is dishonored by nonacceptance or nonpayment and the check is assigned
or written to a collection agency as defined in RCW 19.16.100, the
collection agency may collect a reasonable handling fee for each
instrument. If the collection agency or its agent provides a notice of
dishonor in the form provided in section 2 of this act to the drawer
and the check amount plus the reasonable handling fee are not paid
within thirty-three days after providing 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 and after notice and the expiration of the thirty-three days,
the court 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.
(2) Subsequent to the commencement of an action on the check under
subsection (1) 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,
accrued interest, collection costs equal to the face amount of the
check not to exceed forty dollars, and the incurred court costs,
service costs, and statutory attorneys' fees.
(3) Nothing in this section precludes the right to commence action
in a court under chapter 12.40 RCW for small claims.
NEW SECTION. Sec. 2 (1) If a check is assigned or written to a
collection agency as defined in RCW 19.16.100 and the collection agency
or its agent provides a notice of dishonor, the notice of dishonor may
be sent by mail to the drawer at the drawer's last known address. The
collection agency may, as an alternative to providing a notice in the
form described in RCW 62A.3-520, provide a notice in substantially the
following form:
NEW SECTION. Sec. 3 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; or
(2) Interest or collection costs prior to the expiration of thirty-three days after the serving or mailing of the notice of dishonor, as
provided by section 1 or 2 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 serving or mailing of the notice of
dishonor, as provided by section 1 or 2 of this act.
NEW SECTION. Sec. 4 Sections 1 through 3 of this act are each
added to chapter
SHB 1347 -
By Committee on Financial Institutions, Housing & Consumer
Protection
ADOPTED 04/15/2005
On page 1, line 1 of the title, after "checks;" strike the remainder of the title and insert "and adding new sections to chapter 62A.3 RCW."
EFFECT: First, the conclusive presumption that the debtor received
notice of a dishonored check three days after mailing a notice is taken
out, allowing a debtor to demonstrate that he or she did not receive
notice.
Second, instead of allowing a collection agency to either retain an
affidavit certifying notice or file the affidavit with the court, the
agency is required to file the affidavit and check (or a copy thereof)
with the court.