North Carolina § 25-3-506 - Collection of processing fee for returned checks.

§ 25-3-506. Collection of processing fee for returned checks.

A person who accepts a check in payment for goods or services or the person's assignee may charge and collect a processing fee, not to exceed thirty-five dollars ($35.00), for a check on which payment has been refused by the payor bank because of insufficient funds or because the drawer did not have an account at that bank. If a collection agency collects or seeks to collect on behalf of its principal a processing fee as specified in this section in addition to the sum payable of a check, the amount of the processing fee shall be separately stated on the collection notice. The collection agency shall not collect or seek to collect from the drawer any sum other than the actual amount of the returned check and the specified processing fee. History (1981, c. 781, s. 1; 1983, c. 529; 1987, c. 147; 1991, c. 455, s. 1; 1995, c. 232, s. 1; 1997-334, s. 1; 2000-118, s. 1; 2019-77, s. 1(a).) NORTH CAROLINA COMMENT This section has no counterpart in Revised Article 3. The section was adapted from former G.S. 25-3-512. Editor's Note. - Article 3 of the Uniform Commercial Code was revised in 1995, and during this revision, former G.S. 25-3-507(1) became G.S. 25-3-502 , G.S. 25-3-507(2) was omitted, G.S. 25-3-507(3) became G.S. 25-3-501(b)(3)(i) , G.S. 25-3-507(4) was omitted; G.S. 25-3-508(1) became G.S. 25-3-503(b) , G.S. 25-3-508(2) became G.S. 25-3-503(c) , G.S. 25-3-508(3) became G.S. 25-3-503(b) , G.S. 25-3-508(4), (5), (6), and (7) were omitted, and G.S. 25-3-508(8) became G.S. 25-3-503(b). These former sections should no longer appear in Chapter 25 . Session Laws 2019-77, s. 1(b) made the amendment to this section by Session Laws 2019-77, s. 1(a), effective October 1, 2019, and applicable to checks dated on or after that date. Effect of Amendments. - Session Laws 2019-77, s. 1, substituted "the person's" for "his", and "thirty-five dollars ($35.00)" for "twenty-five dollars ($25.00)" in the first paragraph of the section; substituted "the" for "such" and "shall" for "must" in the first sentence of the second paragraph of the section. For applicability, see Editor's note. Legal Periodicals. - For 1997 legislative survey, see 20 Campbell L. Rev. 389 (1997). PART 6. DISCHARGE AND PAYMENT.