AN ACT TO AMEND SECTION 97-19-57, MISSISSIPPI CODE OF 1972, TO REVISE THE AMOUNT OF THE SERVICE CHARGE FOR A CHECK, DRAFT, ORDER, OR ELECTRONICALLY CONVERTED CHECK THAT HAS BEEN DISHONORED; AND FOR RELATED PURPOSES.
Summary
HB 1226 amends Mississippi’s bad-check statute, Section 97-19-57, to increase the service charge that may be collected when a check, draft, order, electronically converted check, or electronic commercial debit is dishonored. The bill changes the statutory service charge from $40 to $100 in the notice language used for criminal enforcement, while the underlying text continues to require payment of the amount due within 15 days after notice to avoid the presumption of intent to defraud and knowledge of insufficient funds.
The bill also updates the required notice forms for dishonored instruments and electronic commercial debits to reflect the higher service charge, and it preserves the existing mailing and affidavit-of-service procedures. It keeps the rule that returned undelivered notices can serve as prima facie evidence of intent to defraud, and it continues to apply the statute to motor-vehicle-related drafts even when title documents are part of the transaction. The act would take effect on July 1, 2026.
Impact
HB 1226 would amend Section 97-19-57 of the Mississippi Code, affecting the state’s civil and criminal framework for dishonored payment instruments and electronic commercial debits. The main legal change is the increase in the service charge associated with notice of dishonor, which would raise the amount a maker or drawer must pay to avoid the statutory presumption of fraud and potential criminal referral. The bill would directly affect payees, banks, merchants, collection practices, and individuals who issue insufficient-funds checks or similar payment instruments.
Sentiment
The available context suggests the bill is straightforward and technical, with no recorded committee debate or vote history indicating opposition or support beyond the proposal itself. The caption frames it as a false pretenses measure that increases the service charge for dishonored instruments, which suggests a policy focus on deterrence and recovery of costs rather than a broader controversial change. Because no transcripts or votes are provided, the overall sentiment cannot be measured precisely, but the bill appears to be a routine enforcement update.
Contention
The most likely point of contention is the increase in the service charge from $40 to $100, which may be viewed by supporters as better reflecting collection and administrative costs and by critics as a heavier penalty on people who overdraw accounts or experience payment failures. Another possible issue is the bill’s continued use of a presumption of intent to defraud after notice and its application to electronic commercial debits and motor vehicle transactions, which could raise concerns about criminalizing payment disputes or imposing higher costs on consumers and small businesses. No specific objections or named opponents appear in the provided record.