Pennsylvania Increases Permissible Fees for Returned Checks

This is not legal advice for your situation*

The state of Pennsylvania adopted HB 296, which became effective on February 16, 2008. This Bill increases the returned check fee permitted under 18 Pa. Stat. § 4105(e)(3) from $20 to $50. Loans that are affected by this change include "secondary mortgage loans" that are greater than $5,000, but less than or equal to $50,000. For the definition of "secondary lien loans," click here.

Accordingly, DocMagic's Compliance Department has updated its return check fee in its home equity line of credit agreements for Pennsylvania. Please contact the Compliance Department if you have any questions or comments.

*This article is distributed to provide general information about the subject matter covered and should not be utilized as a substitute for professional advice in specific situations. If you require such advice, please consult with your own professional advisers.