Senate Bill No. 378
(By Senator Snyder)
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[Introduced February 1, 1999;
referred to the Committee on Banking and Insurance.]
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A BILL to amend and reenact section thirty-nine-e, article three,
chapter sixty-one of the code of West Virginia, one thousand
nine hundred thirty-one, as amended, relating to worthless
checks; and increasing the allowable service charge for a
dishonored check.
Be it enacted by the Legislature of West Virginia:
That section thirty-nine-e, article three, chapter sixty-one
of the code of West Virginia, one thousand nine hundred thirty- one, as amended, be amended and reenacted to read as follows:
ARTICLE 3. CRIMES AGAINST PROPERTY.
§61-3 -39e. Notice of dishonor by payee; service charge.
The payee or holder of a check, draft or order which has
been dishonored because of insufficient funds or credit may send
notice thereof to the drawer of the check, draft or order. The payee or holder of any dishonored check may impose a fee of up to
fifteen dollars not to exceed twenty-five dollars for a worthless
check less than fifty dollars; thirty dollars for a worthless
check between fifty and three hundred dollars; forty dollars for
a worthless check that is greater than three hundred dollars; and
five percent of the face value of a worthless check over eight
hundred dollars. This fee may not be imposed or collected after
a complaint for warrant has been delivered to magistrate court.
No payee or holder of a check, draft or order which has been
dishonored because of insufficient funds or credit shall incur
any civil or criminal liability for the sending of a notice
substantially in the form provided herein, other provisions of
law notwithstanding. The form of the notice shall be
substantially as follows:
"You are hereby notified that a check, number
................, issued by you on (date of check), drawn upon
(name of bank), and payable to ..........................., has
been dishonored. Pursuant to West Virginia law, you have ten days from the date of this notice to tender payment of the full
amount of the check plus a fee of $..................... (not to
exceed fifteen ...... dollars) to the undersigned at
........................... You are further notified that in the
event the above amount is timely paid in full you will not be
subject to legal proceedings, civil or criminal.
Dated ....................., 19.....
..............................
(Signed)." The provisions of this section do not authorize the making
of any other written or oral threats of prosecution to enforce or
enhance the collection or honoring of the dishonored check, draft
or order.
The holder or payee of any check, draft or order shall
relinquish the check, draft or order to the maker upon tender of
the full amount due at any time before a complaint for warrant
has been presented to magistrate court. In the event complaint
for warrant has been presented to magistrate court, payment may
be made only through the court and any holder or payee unlawfully accepting payment after that time shall be liable for all costs
which may be imposed by the magistrate court in the matter,
including all costs which may have accrued by the time the
magistrate court is notified of the payment.
NOTE: The purpose of this bill is to increase the service
fee from fifteen to twenty-five dollars for a worthless check
less than fifty dollars; thirty dollars for a worthless check
between fifty and three hundred dollars; forty dollars for a
worthless check that is greater than three hundred dollars; and
five percent of the face value of a worthless check over eight
hundred dollars.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.