NAUGATUCK — Residents who write checks to the borough that bounce will now be subject to a fine.
The Board of Mayor and Burgesses this month adopted a policy that mandates a $35 fee for any check returned due to insufficient funds.
The proposal was brought forth by Controller Robert Butler, who was concerned that the borough was losing money on the fees it paid to banks for bounced checks. He said the town pays between $15 and $18 per bounced check. If a check is represented the borough could pay up to $30, he said.
“It’s up to the departments to really chase after people to really get payment. Once you’ve issued a dog license what incentive does anybody really have to come back except they are on a list for next year to pay both of them,” Butler said.
Butler had originally proposed a $25 fee, but the board felt that was too low.
“If the bank is charging us $15 we should charge $15 for our own labor,” Burgess Patrick Scully said. “I think it should be higher.”
Mayor N. Warren “Pete” Hess said he hoped the higher fee would act as a deterrent and not as many people would bounce checks.