Electronic Banking in Texas could = Jail?????
Date: Mon, 10/15/2012 - 13:22
I saw the following on another website and am curious if this is true? If we rescind the ACH priviledges of the illegal PayDay Lenders in Texas can they file "hot check" against us?
New Texas Law Houston Chronicle PRESS RELEASE City Desk August 26, 2009 FOR IMMEDIATE RELEASE: Electronic Banking Could Land You in Jail New law makes it a crime to bounce an electronic check, debit or draft payment According to "hot check" criminal defense lawyer Jeff Ross, who was the former chief prosecutor of the Harris County District Attorney's Office Check Fraud Division, the definition of a "hot check" has been expanded to include an insufficient electronic debit, electronic check or electronic draft. House Bill 2031 was enacted by the Texas Legislature and took effect September 1, 2009. The bill defines a "sight order" to include a written or electronic instruction to pay and includes a check, debit or bank draft. Such an expansion will allow merchants and landlords who use the electronic system rather than paper checks to prosecute individuals under the existing "hot check" laws. No paper check will be required for the prosecution. According to Ross "The legislature has jumped into the 21st century by allowing victims to file criminal charges for bounced electronic transactions. With the advent of plastic cards, check-22 processing and the internet, bad paper checks have been dwindling for years and bad electronic transactions have been increasing. This new law will give victims a mechanism in which to prosecute insufficient electronic payments." House Bill 2031 was created because an increasing number of rental unit tenants pay their rent online with credit cards and the automated clearinghouse (ACH) debit system. The ACH is treated differently under the law than a signed bank check and when there are insufficient funds in the account from which the ACH attempts to draw money, there is no penalty under the law. This bill adds the definition of "sight order" into the Penal Code and allows for prosecution under Texas Penal Code 31.06 and 32.41. Now merchants who scan paper checks electronically, or landlords who receive bad electronic drafts on the 1st of the month, or payday loan companies who receive bad electronic drafts on the loan due date can file criminal charges with the district attorney for theft by check or with the Justice of the Peace courts for issuance of a bad check.
New Texas Law Houston Chronicle PRESS RELEASE City Desk August 26, 2009 FOR IMMEDIATE RELEASE: Electronic Banking Could Land You in Jail New law makes it a crime to bounce an electronic check, debit or draft payment According to "hot check" criminal defense lawyer Jeff Ross, who was the former chief prosecutor of the Harris County District Attorney's Office Check Fraud Division, the definition of a "hot check" has been expanded to include an insufficient electronic debit, electronic check or electronic draft. House Bill 2031 was enacted by the Texas Legislature and took effect September 1, 2009. The bill defines a "sight order" to include a written or electronic instruction to pay and includes a check, debit or bank draft. Such an expansion will allow merchants and landlords who use the electronic system rather than paper checks to prosecute individuals under the existing "hot check" laws. No paper check will be required for the prosecution. According to Ross "The legislature has jumped into the 21st century by allowing victims to file criminal charges for bounced electronic transactions. With the advent of plastic cards, check-22 processing and the internet, bad paper checks have been dwindling for years and bad electronic transactions have been increasing. This new law will give victims a mechanism in which to prosecute insufficient electronic payments." House Bill 2031 was created because an increasing number of rental unit tenants pay their rent online with credit cards and the automated clearinghouse (ACH) debit system. The ACH is treated differently under the law than a signed bank check and when there are insufficient funds in the account from which the ACH attempts to draw money, there is no penalty under the law. This bill adds the definition of "sight order" into the Penal Code and allows for prosecution under Texas Penal Code 31.06 and 32.41. Now merchants who scan paper checks electronically, or landlords who receive bad electronic drafts on the 1st of the month, or payday loan companies who receive bad electronic drafts on the loan due date can file criminal charges with the district attorney for theft by check or with the Justice of the Peace courts for issuance of a bad check.
well
if you revoke an ACH in accordance with the EFTA(electronic funds transfer act)it is a legal revocation.pdl's and the slime that collect might try to tell you differently,but the EFTA is a federal law.
