New law modifies bad check charges, procedures for opening checking accounts

A new law will increase the amount a financial intermediary can charge for a dishonored check to a person other than the issuer from $4 to $10.

It will also clarify that certain limitations on opening a transaction account due to past financial offenses, such as writing dishonored checks, do not apply to programs designed to expand access to people who do not have access to a transaction account at a bank or credit union.

The law, effective Aug. 1, 2021, is sponsored by Rep. Jim Davnie (DFL-Mpls) and Sen. Karin Housley (R-Stillwater).

HF1067/SF1284*/CH21

SF1284* / HF1067 / CH21