Report Title:

Billing Errors

 

Description:

Requires persons offering goods or services for sale who provide erroneous billing statements to consumers to refund the difference between the erroneous and the correct amount to be charged and to reimburse the consumer for costs incurred. Establishes penalty for violation of treble damages not less than $1,000 and reasonable attorney's fees.

 

THE SENATE

S.B. NO.

514

TWENTY-FIRST LEGISLATURE, 2001

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to billing errors.

 

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

SECTION 1. The Hawaii Revised Statutes is amended by adding a new section to be appropriately designated and to read as follows:

"§ - Credit for billing errors and related costs. (a) Any person engaged in the business of offering services or goods for sale who provides the consumer with a billing statement that overcharges the consumer by requesting payment for an erroneous amount, resulting in the consumer's overpayment, an overcharge to the consumer's account, or the consumer's incurring of fees or costs to correct the error, shall handle erroneous billing statements provided to consumers in the following manner:

(1) Upon the discovery of an erroneous billing statement either by the person offering the services or goods or by the consumer and subsequent confirmation of the error by the person offering the services or goods, the consumer's account shall be properly credited and any costs incurred by the consumer to remedy the erroneous billing shall be reimbursed;

(2) If payment for service or goods was made in cash, an amount reflecting the difference between the erroneous billing amount and the accurate billing amount shall be paid to the consumer in cash, or by check issued within ten days of the discovery of the erroneous billing and confirmation of the error by the person offering the goods or services for sale or submitting the erroneous billing statement; and

(3) If the consumer's check has not cleared the bank on which it was drawn, payment may be delayed for no more than ten days after the date the purchaser's check has cleared.

(b) A person offering goods or services for sale shall have complied with this section if the check is mailed to the provider at the address provided by the purchaser within the ten-day period.

(c) A purchaser shall have a private right of action against any seller who fails to comply with this section, and may recover treble damages subject to a minimum recovery of not less than $1,000, and payment of the purchaser's reasonable attorney's fees and costs."

SECTION 2. New statutory material is underscored.

SECTION 3. This Act shall take effect upon its approval.

INTRODUCED BY:

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