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Returned Checks

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Policy 502.5

1 Introduction

2 Scope

3 Definitions

4 Policy and Procedure Statements

4.1 Returned Checks

4.1.1 Every effort will be made to collect checks that have been returned by the bank to the Bookstore for whatever reason.

4.1.2 After the check has been returned it will be redeposited a second time unless the account is closed or a stop payment has been placed on the check. A notice will be sent to the individual advising her/him to make arrangements with the bank for the check to clear.

4.1.3 Less than $25.00 - If the check is returned a second time, the payor is a University employee or student, and the amount of the check is less than $25.00, the charge will be placed on Accounts Receivable in the Controller's Office.

4.1.4 More than $25.00 - If the check is returned a second time and the amount is $25.00 or more, the Bookstore will send a certified letter advising the payor the check has been returned a second time. Furthermore, payment should be made within seven (7) days or the charge will be transferred to the Controller's Office and withheld from a subsequent payroll.

4.2 Students not Employed by Appalachian State University

4.2.1 If a check has been returned from the bank a second time and the person is not a University employee, a certified letter will be sent to the University Post Office Box and a first class letter will be sent to the home address. The student will have 15 days from the mailing date to clear the check and avoid legal action. If after 15 days the student has not cleared the check, a warrant will be issued.

4.2.2 Payment will not be accepted by the Bookstore after a warrant has been issued. The account must be cleared with the Magistrate or the Clerk of Court of Watauga County.

5 Additional References

6 Authority

7 Contact Information

8 Original Effective Date

9 Revision Dates