BILL REQ. #: H-0396.1
| State of Washington | 59th Legislature | 2005 Regular Session |
Read first time 01/20/2005. Referred to Committee on Judiciary.
AN ACT Relating to dishonored checks; and amending RCW 62A.3-515, 62A.3-520, 62A.3-522, and 62A.3-525.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1 RCW 62A.3-515 and 2000 c 215 s 1 are each amended to read
as follows:
(a)(1) If a check as defined in RCW 62A.3-104 is dishonored by
nonacceptance or nonpayment, the payee or person entitled to enforce
the check under RCW 62A.3-301 may collect a reasonable handling fee for
each instrument. If the check is not paid within fifteen days and
after the person entitled to enforce the check or the person's agent
sends a notice of dishonor as provided by RCW 62A.3-520 to the drawer
at the drawer's last known address, and if the instrument does not
provide for the payment of interest or collection costs and attorneys'
fees, 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
cost of collection not to exceed forty dollars or the face amount of
the check, whichever is less, payable to the person entitled to enforce
the check. In addition, in the event of court action on the check, the
court, after notice and the expiration of the fifteen 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 person enforcing the check. This section does
not apply to an instrument that is dishonored by reason of a
justifiable stop payment order.
(2) 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 RCW 62A.3-520 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.
(b)(1) Subsequent to the commencement of an action on the check
(subsection (a)) 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.
(2) Nothing in this section precludes the right to commence action
in a court under chapter 12.40 RCW for small claims.
Sec. 2 RCW 62A.3-520 and 1993 c 229 s 68 are each amended to read
as follows:
(1) The notice of dishonor shall be sent by mail to the drawer at
the drawer's last known address, and the notice shall be substantially
in the following form:
Sec. 3 RCW 62A.3-522 and 2000 c 215 s 2 are each amended to read
as follows:
(1) In addition to sending a notice of dishonor to the drawer of
the check under RCW 62A.3-520, 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:
Sec. 4 RCW 62A.3-525 and 2000 c 215 s 3 are each amended to read
as follows:
(1) No interest, collection costs, and attorneys' fees, except
handling fees, are recoverable on any dishonored check under the
provisions of RCW 62A.3-515(a)(1) where a person entitled to such
recovery or any agent, employee, or assign has demanded:
(((1))) (a) Interest or collection costs in excess of that provided
by RCW 62A.3-515(a)(1); or
(((2))) (b) Interest or collection costs prior to the expiration of
fifteen days after the mailing of notice of dishonor, as provided by
RCW 62A.3-515(a)(1) and 62A.3-520(1); or
(((3))) (c) Attorneys' fees either without having the fees set by
the court, or prior to the expiration of fifteen days after the mailing
of notice of dishonor, as provided by RCW 62A.3-515(a)(1) and 62A.3-520(1).
(2) No interest, collection costs, and attorneys' fees, except
handling fees, are recoverable on any dishonored check under the
provisions of RCW 62A.3-515(a)(2) where a collection agency or its
agent, employee, or assign has demanded:
(a) Interest or collection costs in excess of that provided by RCW
62A.3-515(a)(2); or
(b) 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 RCW 62A.3-515(a)(2) or 62A.3-520(2); or
(c) 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 RCW 62A.3-515(a)(2) or 62A.3-520(2).