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California Civil Code S 1719: 1. does it cover ACH? 2. Are treble
I have two questions about California Civil Code Section 1719
QUESTION 1. Does anyone know if it applies to ACH transfers?
Section 1719
(a)
(6) As used in this subdivision, to "pass a check on insufficient
funds" means to make, utter, draw, or deliver any check, draft, or
order for the payment of money upon any bank, depository, person,
firm, or corporation that refuses to honor the check, draft, or order
for any of the following reasons:
(A) Lack of funds or credit in the account to pay the check.
(B) The person who wrote the check does not have an account with
the drawee.
(C) The person who wrote the check instructed the drawee to stop
payment on the check.
QUESTION 2. This section imposes treble damages. Are those treble
damages nondischargeable? I can't think of any basis for
nondischargeability?
1719
(a)
(1) Notwithstanding any penal sanctions that may apply,
any person who passes a check on insufficient funds shall be liable
to the payee for the amount of the check and a service charge payable
to the payee for an amount not to exceed twenty-five dollars ($25)
for the first check passed on insufficient funds and an amount not to
exceed thirty-five dollars ($35) for each subsequent check to that
payee passed on insufficient funds.
(2) Notwithstanding any penal sanctions that may apply, any person
who passes a check on insufficient funds shall be liable to the
payee for damages equal to treble the amount of the check if a
written demand for payment is mailed by certified mail to the person
who had passed a check on insufficient funds and the written demand
informs this person of (A) the provisions of this section, (B) the
amount of the check, and (C) the amount of the service charge payable
to the payee. The person who had passed a check on insufficient
funds shall have 30 days from the date the written demand was mailed
to pay the amount of the check, the amount of the service charge
payable to the payee, and the costs to mail the written demand for
payment. If this person fails to pay in full the amount of the check,
the service charge payable to the payee, and the costs to mail the
written demand within this period, this person shall then be liable
instead for the amount of the check, minus any partial payments made
toward the amount of the check or the service charge within 30 days
of the written demand, and damages equal to treble that amount, which
shall not be less than one hundred dollars ($100) nor more than one
thousand five hundred dollars ($1,500). When a person becomes liable
for treble damages for a check that is the subject of a written
demand, that person shall no longer be liable for any service charge
for that check and any costs to mail the written demand.
Alik Segal
Alik.Segal@gmail.com
310-362-6157
Cal. CD, Los Angeles
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