Texas Senate Bill SB1463

Texas 2011 - 82nd Regular

• Out of Senate Committee: 4/19/11
• Introduced: 3/10/11
• Refer: 3/22/11
• Report Pass: 4/19/11

Caption

Relating to the processing fee charged for a dishonored payment device.

Impact

The implementation of SB1463 is expected to have significant implications for both consumers and businesses. On one hand, it aims to enhance consumer protection by preventing businesses from charging exorbitant fees on dishonored payment devices. This position is particularly relevant in consolidating consumer rights and ensuring fairness in debt collection practices. Conversely, it could mean that businesses may experience reduced recovery amounts in cases where payments are dishonored, thereby impacting their revenue flow.

Summary

SB1463 addresses the processing fees associated with dishonored payment devices in the state of Texas. Specifically, the bill amends the Business and Commerce Code to establish a cap on the maximum processing fee that can be charged when a payment device, such as a check or credit card, is returned unpaid. The new legislation stipulates that the processing fee shall not exceed $30, which is intended to provide clarity and protect consumers from excessively high fees charged during collection processes.

Contention

The discussions leading to this bill's proposal hinged on balancing the interests of consumers with those of businesses. Opponents raised concerns regarding the potential impacts on businesses, particularly smaller establishments that may rely on the ability to recoup costs associated with bad debts. Advocates for the bill argued that the established cap on fees is essential for preventing unjust financial strain on consumers, many of whom may already be in precarious financial situations. The challenge remains in ensuring that the bill supports ethical business practices while safeguarding consumer interests.