Stiffer penalties for bouncing checks pushed

CEBU, Philippines - Cebu fifth district representative Ramon ‘Red’ H. Durano VI is pushing to strengthen penalties against bouncing checks through House Bill 2515, which seeks to amend Batas Pambansa Bilang 22 or the ‘Bouncing Checks Law.’

HB 2515 seeks to intensify the penalties on making or drawing and issuance of a check without sufficient funds or credit, and the issuance of a check with a closed bank account.

In a statement, Durano said that what prompted him to introduce the bill is the clamor from the business sector for protection against the proliferation of cases involving the issuance of unfunded checks, which is affecting the integrity of the banking and business transaction in the country.

“There is a need to amend the Bouncing Checks Law because it could no longer cope with the current business practices and could no longer safeguard businesses from unscrupulous people who are abusing the issuance of unfunded checks,” said Durano.

The bill stated that the deliberate issuance of a check with insufficient funds could lead to a maximum of three years imprisonment.

On the other hand, the issuance of a check from a closed bank account is punishable with imprisonment of a maximum of six years.

Moreover, checks presented within 180 days shall be considered as evidence against the maker for knowing prior to the issuance that it has insufficient funds in the bank. The maker may make arrangements for payment in full within 30 banking days after receiving notice that such check was dishonored. Same requisites go for drawee issuing checks from a closed bank account. All notices of dishonor shall be sent to the last known address of the individual drawing the check and such is considered as evidence of receipt.

The Cebuano lawmaker added that such amendment is a step forward in ensuring the continued economic growth of our country and that such move is necessary to maintain the trust of investors both local and foreign and to protect the financial integrity of the booming business sector in the Philippines.

Durano said the nation’s economic performance must not lose momentum, if this bill will be passed, it would not only benefit big businessmen but also the small and medium enterprises who often fell prey to such illegal practices.  (FREEMAN)