Bill raises returned check fee to $30

NASHVILLE (AP) — Retailers would only be able to charge up to $30 for a returned check under legislation that overwhelmingly passed the House on Wednesday.

Earlier this month, the House passed an amended Senate version of the bill which set up a graduated fee scale. The original bill raised the current charge from $20 to $30.

With the amendment, retailers would be able to charge $25 if the check doesn’t exceed $50; $30 if it’s more than that but less than $300; and $40 if the amount is more than $300, or 5 percent of the check, which couldn’t exceed a maximum of $150.

The bill’s sponsor, Rep. Robert McKee, R-Niota, said the maximum penalty is justifiable because of costs retailers incur for bad checks, such as bank fees, certified mailings to the check writer and collection costs.

Opponents of the legislation, however, said returned checks aren’t always intentional.

A few days after the House passage, the Senate rejected with the bill’s amendment, which brought up the House vote on Wednesday.

The legislation now goes to the governor to become law.

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On the Net:

Read SB2142 at http://www.legislature.state.tn.us/