BILL REQ. #:  S-2343.1 

READ FIRST TIME 02/28/07.   

     AN ACT Relating to reasonable attorneys' fees for dishonored checks; and amending RCW 62A.3-515 and 62A.3-530.

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) 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.
     (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) If a plaintiff does not accept the amount tendered and the plaintiff fails to recover at the court hearing more than the amount tendered, then the plaintiff shall not be awarded the lesser of three times the face amount of the check or three hundred dollars, nor reasonable attorneys' fees.
     (c) In any action where statutory attorneys' fees are tendered by the defendant or awarded by the court, there need be only one statutory fee tendered and there shall be only one statutory attorneys' fee awarded regardless of the number of dishonored checks included in the action.
     (d) 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.3-530 and 2005 c 277 s 3 are each amended to read as follows:
     (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 RCW 62A.3-540 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)(a) 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.
     (b) If a plaintiff does not accept the amount tendered and the plaintiff fails to recover at the court hearing more than the amount tendered, then the plaintiff shall not be awarded the lesser of three times the face amount of the check or three hundred dollars, nor reasonable attorneys' fees.
     (3) In any action where statutory attorneys' fees are tendered by the defendant or awarded by the court, there need be only one statutory fee tendered and there shall be only one statutory attorneys' fee awarded regardless of the number of dishonored checks included in the action.
     (4) Nothing in this section precludes the right to commence action in a court under chapter 12.40 RCW for small claims.