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Senate of Pennsylvania
Session of 2017 - 2018 Regular Session


Posted: February 21, 2017 11:18 AM
From: Senator Patrick J. Stefano
To: All Senate members
Subject: Revising the service charge permitted for collecting on a bad check
I will be reintroducing last session’s Senate Bill 1230, 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 reintroducing 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.

I ask you to please join me in co-sponsoring this important piece of legislation. If you have any questions regarding this information, please contact Mark Fetzko (mfetzko@pasen.gov) of my office.

Introduced as SB590