I did not know this
May 5, 2009 | alternatives, industry | Comments (0)Municipalities charge for bounced checks. From the Eau Claire (WI) Leader Telegram:
Two months after cutting the penalty for writing bad checks by $10, Eau Claire County is prepared to reverse that action.
The decrease to a $20 penalty approved in March was done to correct an error in county law, but the proposed increase back to $30 on tonight’s County Board agenda is intended to make bad-check writers cover the full cost of bouncing checks.
“We have the ability to do a resolution based on the actual cost to the county,” said Supervisor Stella Pagonis, Finance and Budget Committee chairwoman.
In mid-March, Scott Rasmussen, the county’s finance director, analyzed the bank charges, staff time and supplies used to process a bad check. He found the county’s processing costs ranged from $23.40 to $39.35.
“We end up putting $30 into costs to get the check covered again,” said Supervisor James Dunning, a Finance and Budget Committee member.
At some point, it won’t be about covering the costs. Cities and other governments will raise the penalty of bouncing a check to make money. It’s easier than a straightforward tax.
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