An Act to amend the Bills of Exchange Act (rights of bill holders)

This bill was last introduced in the 40th Parliament, 3rd Session, which ended in March 2011.

This bill was previously introduced in the 40th Parliament, 2nd Session.

Sponsor

Libby Davies  NDP

Introduced as a private member’s bill. (These don’t often become law.)

Status

Introduced, as of Feb. 10, 2009
(This bill did not become law.)

Summary

This is from the published bill. The Library of Parliament often publishes better independent summaries.

This enactment amends the Bills of Exchange Act to make the rights of a bill holder subject to a right or defence of set-off held by a purchaser in respect of an action by the seller. The purpose of the enactment is to prevent the cashing of cheques by a cheque-cashing business where a cheque has been cancelled by the person who wrote the cheque.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, provided by the Library of Parliament. You can also read the full text of the bill.

Bills of Exchange ActRoutine Proceedings

February 10th, 2009 / 10:10 a.m.
See context

NDP

Libby Davies NDP Vancouver East, BC

moved for leave to introduce Bill C-305, An Act to amend the Bills of Exchange Act (rights of bill holders).

Mr. Speaker, the bill before us today would protect consumers from lawsuits when cheque cashing businesses cash cancelled cheques. Under the current laws, which date back to the 1890s, businesses, such as Money Mart, can successfully sue the issuer of a cheque cashed by a third party even when a stop payment order has been issued.

I have had numerous examples brought to my attention of consumers who have been ripped off by an unsavoury business even when they tried to put a stop payment on a cheque or when problems developed. I am hoping the bill will have broad support from MPs because this is happening in every community because of a very archaic law.

The bill before us would put the onus on businesses to ensure that the cheques they cash have not had a stop payment put on them. It is a consumer protection bill that would save people much grief from dealing with financial organizations that operate in a way that rips off consumers.

(Motions deemed adopted, bill read the first time and printed)