[Congressional Record Volume 141, Number 109 (Friday, June 30, 1995)]
[Extensions of Remarks]
[Page E1368]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]



[[Page E1368]]


                  POSTMARK PROMPT PAYMENT ACT OF 1995

                                 ______


                          HON. JOHN M. McHUGH

                              of new york

                    in the house of representatives

                         Thursday, June 29, 1995
  Mr. McHUGH. Mr. Speaker, we have an opportunity to remedy one of the 
unfair burdens placed upon the conscientious citizens of this country 
who pay their bills on time but, who through no fault of their own, are 
slapped with interest charges because of the delays of others.
  Over the years, many of us have been contacted by constituents who 
have incurred problems with payments they have mailed and were not 
delivered on time. It has even been suggested that some creditors go as 
far as to slow down the process as payment due dates approach so as to 
allow interest charges to accrue. This usually results in late fees and 
can even affect credit ratings.
  Mr. Speaker, if this sounds familiar, it is because this problem is a 
frequently discussed topic on Talknet, a radio show hosted by Bruce 
Williams. The focus of Bruce Williams' show is on the life in the real 
world concerns of his listeners.
  Today I am introducing the Postmark Prompt Payment Act of 1995 to 
correct this inequity by allowing the postmark on the envelope 
containing the payment to be proof of timely payment. The use of the 
postmark has precedence in contract law. For example, the Internal 
Revenue Service uses the postmark on envelopes as proof that taxpayers 
mailed income tax returns on or before the April 15 deadline, 
regardless of when the IRS received the payment. If the IRS uses the 
postmark as proof of timely payment, then why can't the banks or credit 
card companies?
  This legislation would not apply to any other type of payment other 
than on a blll, invoice or statement of account due and would only 
apply to payments made through the mail and excludes metered mail. 
Furthermore, the envelope would have to be correctly addressed to the 
payee and have adequate postage affixed to it.
  Mr. Speaker, this legislation has 20 original cosponsors. I believe 
everyone who values their good credit will benefit from this 
legislation. Let's show the American people our resolve to remedy the 
payment due problem.


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