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Senate of Pennsylvania
Session of 2019 - 2020 Regular Session


Posted: December 7, 2018 10:28 AM
From: Senator Patrick J. Stefano
To: All Senate members
Subject: Revising the Service Charge Permitted for Collecting on a Bad Check
In the near future, I will be re-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 re-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.

This legislation was formerly Senate Bill 590 of the 2017-18 Legislative Session. The bill was co-sponsored by Senator Wagner, and passed the Senate unanimously.

I sincerely hope that you will join me in co-sponsoring this legislation. If you have any questions regarding this information, please contact Jake Gery in my office at jgery@pasen.gov.

Introduced as SB332