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S. 257

STATUS INFORMATION

General Bill
Sponsors: Senator Verdin
Document Path: l:\s-res\dbv\002frau.mrh.doc

Introduced in the Senate on January 13, 2005
Currently residing in the Senate Committee on Banking and Insurance

Summary: Fraudulent check service charge increased

HISTORY OF LEGISLATIVE ACTIONS

     Date      Body   Action Description with journal page number
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   1/13/2005  Senate  Introduced and read first time SJ-21
   1/13/2005  Senate  Referred to Committee on Banking and Insurance SJ-21

View the latest legislative information at the LPITS web site

VERSIONS OF THIS BILL

1/13/2005

TO AMEND SECTION 34-11-70, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO FRAUDULENT INTENT IN ISSUING A BAD CHECK, SO AS TO INCREASE THE SERVICE CHARGE FROM THIRTY DOLLARS TO SEVENTY DOLLARS.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION    1.    Section 34-11-70(a) of the 1976 Code, as last amended by Act 291 of 2002, is further amended to read:

"(a)    When a check, a draft, or other written order is not paid by the drawee because the maker or drawer did not have an account with or sufficient funds on deposit with the bank or the person upon which it was drawn when presented or the draft, check, or other written order has an incorrect or insufficient signature on it, and the maker or drawer does not pay the amount due on it, together with a service charge of thirty seventy dollars, within ten days after written notice has been sent by certified mail to the address printed on the check or given at the time it is tendered or provided on a check-cashing identification card stating that payment was refused upon the instrument, then it constitutes prima facie evidence of fraudulent intent against the maker. Service charges collected pursuant to this section must be paid to the payee of the instrument.

(1)    For purposes of subsection (a), notice must be given by mailing the notice with postage prepaid addressed to the person at the address as printed or written on the instrument. The giving of notice by mail is complete upon the expiration of ten days after the deposit of the notice in the mail. A certificate by the payee that the notice has been sent as required by this section is presumptive proof that the requirements as to notice have been met, regardless of the fact that the notice actually might not have been received by the addressee. The form of notice must be substantially as follows:

'You are notified that a check or instrument, numbered ___, issued by you on ___ (date), drawn upon ___ (name of bank), and payable to ___, has been dishonored. Pursuant to South Carolina law, you have ten days from the date this notice was mailed to tender payment of the full amount of the check or instrument plus a service charge of thirty seventy dollars, the total amount due being ___ dollars and ___ cents. Unless this amount is paid in full within the specified time above, the holder of the check or instrument may turn over the dishonored check or instrument and all other available information relating to this incident to the solicitor or other appropriate officer for criminal prosecution.'

(2)    When a person instituting prosecution gives notice in substantially similar form provided in item (1) to the person upon which the instrument was drawn and waits ten days from the date notice is mailed before instituting the criminal proceedings, there arises a presumption that the prosecution was instituted for reasonable and probable cause, and the person instituting prosecution is immune from civil liability for the giving of the notice.

(3)    A service charge of not more thirty seventy dollars is payable by the drawer of a draft, a check, or other written order to the payee of the instrument when the draft, check, or other written order is presented for payment in whole or in part of a then existing debt including, but not limited to, consumer credit transactions, and is dishonored. This service charge is solely to compensate the payee of the instrument for incurred expenses in processing the dishonored instrument and is not related to a presumption of fraud so that it is not necessary to issue the notice to the person at the address as printed on the instrument set forth in items (1) and (2)."

SECTION    2.    This act takes effect upon approval by the Governor.

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