Controller's Office Policy CO 89 01

Purpose: To explain the University's policy and procedures for returned checks

Scope: Applies to all University students, University employees, and non students

Policy: Collection of returned checks using State mandated due diligence

All returned checks will be forwarded to the Cashier's Office. Upon receiving a returned check, the Bursar will determine whether a student or non-student wrote the check and will have the check posted to the correct account. If the check was written by/for a student, it will be posted to the student account by social security number. If a non-student wrote the check, it will be posted to Non-Student Returned Checking using the ID #000-00-0001.

After the returned check has been posted, the cashier will redeposit those checks marked \"insufficient funds\" that have been returned by the bank.

When the check has been charged back to UNCP, the maker will be notified by letter that he or she must pay the face amount of the returned check as well as a $25 service charge for each returned check. If payment is not received within ten days, further action must be taken. A second letter is sent to the maker of the check informing him/her that unless the check is paid within ten days the matter will be turned over to the judicial process by signing a warrant.

A second returned check will result in the lost of check writing privileges for the remainder of the fiscal year. If the check is for/from a student, the maker of the check is also informed that administrative holds will be placed on his/her student account. The holds will prevent any future registration to the University and prevent issuance of any transcripts from the University. The student will be withdrawn from the University only at the direction/approval of the Vice Chancellor of Business Affairs. With the exception of State employees who are required by law to pay obligations to the State or be terminated from employment, when the returned check does not exceed $11.00 and the check is not for/from a student, collection efforts should not be taken beyond the initial letter to avoid mailing and other costs related to collecting small sums.

Claims for delinquent accounts will be filed through the provisions of the Set Off Debt Collection Act and State Employee Collection Act. A warrant could also be filed with the courthouse. After a warrant has been filed, payment will be accepted only from court officials. Returned checks are written off one year after warrants are issued.