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Utah House approves tougher civil penalties, new notice period for bad checks
Summary
The House passed HB 86 after floor amendments that reduced penalty amounts and added judicial discretion; the bill extends the notice period before lawsuits to 30 days and raises civil penalties for intentional bad-check writers while allowing merchants to waive fees.
Representative Swallow presented House Bill 86 as an effort to balance consumer protections with merchant losses from bounced checks. He said the bill would require a 30-day written notice period before a civil lawsuit could be filed, allow merchants to waive the $20 service fee, and increase penalties for intentional abusers. "House bill 86 is an attempt to address a problem at a root level," Swallow said.
Floor amendments modified the bill: Representative Gladwell proposed reducing statutory penalty thresholds (replace $100 minimum with $50 and $500 cap with $250); Representative Harper offered a substitute that incorporated Gladwell's changes and added judicial discretion to waive penalties when merited. Supporters including Representatives Rowan and Hickman described the amended bill as more consumer-friendly and a reasonable attempt to curb intentional abuse while giving innocent check-writers time to remedy errors. Opponents, including Representative Hogue, warned the damages scheme could incentivize collection agencies and result in disproportionate costs for low-value checks.
The House adopted the combined amendments and passed HB 86 by a recorded vote of 45 yes to 23 no. The sponsor said the bill creates additional consumer protections by increasing cure windows and permitting judicial waiver when appropriate; opponents voiced concern about unintended collection-industry windfalls.
