STAND. COM. REP. NO. 280-06

Honolulu, Hawaii

, 2006

RE: S.B. No. 1223

S.D. 2

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Consumer Protection & Commerce, to which was referred S.B. No. 1223, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO NEGOTIABLE INSTRUMENTS,"

begs leave to report as follows:

The purpose of this bill is to recognize that the cost of recovering a check has increased over the past six years by raising the service charge that a check holder may assess for a dishonored check from $20 to an unspecified amount.

Credit Associates of Maui, Ltd., and Honolulu Collection Corporation supported this bill. Credguard Corporation, Kauai Credit Adjusters, Vericheck Kauai, Maui Collection Service, Inc., MEDCAH, Inc., Pacific Collections, Doctors Business Bureau of Hawaii, Vericheck, Collection Agency of Hawaii, Sunrise Recovery Services, L.L.C., and several concerned individuals submitted testimony in support of this measure and recommended amendments. The Office of Consumer Protection, Department of Commerce and Consumer Affairs commented.

Your Committee finds that similar fees in other states range from $10 to $30 dollars, while local financial institutions charge approximately $20. There remains some question as to whether there is evidence to support an increase in the service charge.

 

As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1223, S.D. 2, and recommends that it pass Second Reading and be referred to the Committee on Finance.

 

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

 

____________________________

ROBERT N. HERKES, Chair