Utah House Rejects Proposal to Raise Merchant Bad‑check Fee After Heated Floor Debate

Summary

After hours of debate over whether raising the merchant dishonored‑check fee from $15 to $25 would help small merchants or punish low‑income consumers, the Utah House on Feb. 10, 1997 defeated the substitute measure 25‑46. The session also advanced several other bills to the Senate, including measures on housing, juvenile court access and elk farming.

The Utah House of Representatives rejected a substitute bill that would have raised the statutory merchant fee for dishonored checks from $15 to $25 after extended floor debate and several failed amendment votes.

Representative Lloyd W. Franson, the bill’s sponsor, told the chamber the change “is changing $15 to $25” to allow merchants to recover the cost of processing dishonored checks and to provide an incentive for retailers to handle collection internally rather than use third‑party collection agencies. Franson framed the proposal as a fairness measure for merchants who incur time and expenses to pursue payment.

Opponents on the floor said the increase would disproportionately hurt low‑income consumers and risked creating a larger business for collection agencies. Lawmakers raised examples of students and month‑to‑month households who could face steep fees for small errors, and argued automation and check‑verification services reduce merchants’ costs. One lawmaker urged caution,…

Utah House Rejects Proposal to Raise Merchant Bad‑check Fee After Heated Floor Debate

Summary

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