Report Title:

Check Cashing

 

Description:

Clarifies that the maximum face amount of a single check for deferred deposit is limited to $300. Limits total amount of deferred deposit checks for one customer to $600. Increases allowable charge to $40 for dishonored checks after 15-day notification to customer. Repeals drop-dead date.

 

THE SENATE

S.B. NO.

1396

TWENTY-FIRST LEGISLATURE, 2001

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to check cashing.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Act 146, Session Laws of Hawaii 1999, section 1, is amended by amending subsections (c), (d), and (e) of section     -4, Hawaii Revised Statutes, to read as follows:

"(c) The face amount of [the] a single check accepted for deferred deposit shall not exceed $300 and the deposit of a personal check written by a customer pursuant to a deferred deposit transaction may be deferred for no more than thirty-one days. A check casher may charge a fee for deferred deposit of a personal check in an amount not to exceed fifteen per cent of the face amount of the check. Any fees charged for deferred deposit of a personal check in compliance with this section shall be exempt from chapter 478.

(d) A check casher [shall not] may enter into an agreement for deferred deposit with a customer during the period of time that an earlier agreement for a deferred deposit for the same customer is in effect[. A deferred deposit transaction shall not be repaid, refinanced, or consolidated by or with the proceeds of another deferred deposit transaction.]; provided that the aggregate total dollar value at any one time of all checks of the customer accepted for deferred deposit shall not exceed $600.

(e) A check casher who enters into a deferred deposit agreement and accepts a check passed on insufficient funds, or any assignee of that check casher, shall not be entitled to recover damages in any action brought pursuant to or governed by chapter 490. Instead, the check casher may charge and recover a fee for the return of a dishonored check in an amount not greater than [$20.] $40 after providing fifteen days notice to the customer that the check has been dishonored."

SECTION 2. Act 146, Session Laws of Hawaii 1999, is amended by amending section 2 to read as follows:

"SECTION 2. This Act shall take effect on July 1, 1999[, and shall be repealed on July 1, 2001]."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect on June 30, 2001.

INTRODUCED BY:

_____________________________