50-6,105. Method of payment; express authorization required; when.
50-6,105
50-6,105. Method of payment; express authorizationrequired; when.(a) No supplier shall obtain or submit for payment, otherthan for the continuation of existing and recurrent services,services provided by a public utility as defined in K.S.A. 66-104, andamendments thereto, services provided by a wireless carrier as defined inK.S.A. 12-5301, and amendments thereto, or the collection of a preexistingdebt, a check, draft or other form of negotiable instrument or payment orderdrawn on a person's checking, savings, share or similar account without theconsumer's express authorization.The supplier obtaining or submitting the check, draft or other form ofnegotiable instrument or payment order for payment shall have the burden ofproving the express authorization by a preponderance of the evidence.
(b) As used in this section, "express authorization" means an expressaffirmativeact by a consumer clearly agreeing to the payment by check, draft or other formof negotiable instrument or payment order drawn on a person's checking,savings, share or similar account.
(c) Nothing in this section shall prohibit a consumer from personallydirecting the consumer's financial institution to make payment from theconsumer's checking, savings, share or similar account via electronic ortelephonic means in accordance with procedures set by the consumer's financialinstitution, nor shall this section affect the right of a consumer to transferfunds from one account to another.
(d) Notwithstanding the provisions of K.S.A. 84-4-402, and amendmentsthereto, financial institutions may decline to pay any check, draft orother formof negotiable instrument or payment order submitted without proof of theconsumer's express authorization.
(e) A violation of subsection (a) is an unconscionable act within the meaningof K.S.A. 50-627, and amendments thereto.
(f) This section shall be part of and supplemental to the Kansas consumerprotection act.
History: L. 2001, ch. 105, § 1;L. 2002, ch. 13, § 1; July 1.