Posted: | April 6, 2016 02:43 PM |
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From: | Senator Patrick J. Stefano |
To: | All Senate members |
Subject: | Revising the service charge permitted for collecting on a bad check |
I am introducing legislation that amends Section 4105 (e)(3) of Title 18 (Crimes and Offenses) of Pennsylvania Consolidated Statutes. Under this legislation, the cap on a service charge that a merchant may charge for a bad check will be raised from $50 to $75. This fee was last increased in 2007, when it was raised from $20 to $50 by Act 70. I am introducing this legislation in response to a request by a small business owner who lives in my district. He noted that the current service charge does not cover the expenses generated by the activities necessary to collect on a bad check. The service charge was last changed almost a decade ago. This legislation will adjust it to better reflect the costs incurred when a business collects on a bad check. |
Introduced as SB1230