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An Act To Amend the Laws Governing Penalties for Writing Bad Checks
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 14 MRSA §6071, sub-§1, as amended by PL 1995, c. 288, §1, is further amended to read:
 
1. Recovery of costs.   In any action against a person liable for a dishonored check, the holder may recover the amount of the check, the court costs and the processing charges incurred by the holder, plus interest at the rate of 12% per annum from the date of dishonora service charge of 5% of the face amount of the check or $30, whichever is greater, if:
 
A.  The holder gives notice pursuant to section 6073 for payment of the check; and
 
B.  The person liable fails to tender the amount of the check, plus bank fees and mailing costs, within l0 days of receiving the notice set forth in section 6073.
Sec. 2. 14 MRSA §6071, sub-§2, as amended by PL 2009, c. 495, §1, is further amended to read:
 
2. Attorney's fees; civil penalty.   If the person liable does not pay the amount of the check, plus costs and interest, before the hearing, then the court may award reasonable attorney's fees to the prevailing party. In addition, the court may award to the holder of the check a civil penalty, not to exceed $150twice the face amount of the check or $500, whichever is less, to be paid by the person liable for the check.
Sec. 3. 14 MRSA §6071, sub-§5, ¶¶A and B, as enacted by PL 2005, c. 365, §1, are amended to read:
 
A.  If a check is not honored by the drawee bank because the drawer has no account with the bank, the additional liquidated damages are in an amount twice3 times the face amount of the check or $750$1,000, whichever is less.
 
B.  If a check is not honored by the drawee bank because the drawer has insufficient funds on deposit with the bank, the additional liquidated damages are in an amount twice3 times the face amount of the check or $400$750, whichever is less.
Sec. 4. 14 MRSA §6073, sub-§3, as amended by PL 1995, c. 288, §3, is further amended to read:
 
3.   Processing and service charges; and
Sec. 5. 14 MRSA §6073, sub-§4, as amended by PL 1995, c. 288, §3, is repealed.
Sec. 6. 14 MRSA §6073, sub-§5, as amended by PL 2009, c. 495, §2, is further amended to read:
 
5.   A penalty not to exceed $150$500.
 
SUMMARY
This bill amends the civil penalties for issuing a check that is subsequently dishonored. Current law allows a person to recover the amount of the check, the court costs and the processing charges incurred by the holder, plus interest at the rate of 12% per annum from the date of dishonor. If the person liable does not pay the amount of the check, plus costs and interest, before the hearing, the court may award reasonable attorney's fees to the prevailing party plus a civil penalty, not to exceed $150. A person who issues a 2nd dishonored check to the same payee is liable for damages of the lesser of 2 times the amount of the check and $750 if the person does not have an account at the bank from which the check is issued or $400 if there are insufficient funds to pay the check.
This bill increases the civil penalty for issuing a check that is dishonored to twice the face amount of the check or $500, whichever is less. This bill also imposes a service charge of $30 or 5% of the face amount of the check, whichever is greater, and removes the interest penalty. The penalty for issuing a 2nd dishonored check to the same payee is increased to the lesser of 3 times the face value of the check and $1,000 if the person does not have an account at the bank from which the check is issued or $750 if there are insufficient funds to pay the check.