Policies and Procedures

Dishonored Checks


 
Chapter:                      2
Section:                      8.01
Computer Index Code:          C2S08.01
Origination Date:             4/18/84
Inst. Council Approval Date:  6/13/84
 
 
Subject:  Chapter 2      BUSINESS--VP FOR BUSINESS
          Section 8.01   DISHONORED CHECKS POLICY
 
 
I.   PURPOSE
 
     To provide uniform guidelines for the collection of checks returned
     to the College unpaid and provision for appropriate handling charges
     and other necessary collection expenses.
 
 
II.  DEFINITION
 
     "Dishonored checks" refers to the non-payment of personal checks by
     banks on whom checks are drawn.  Typically this occurs for one or
     more of the following reasons:
 
     Refer to Maker
     Insufficient Funds
     Signature Missing or Incomplete
     Payment Stopped
     Account Closed
     Postdated
     Staledated
 
 
III. POLICY
 
     A.   The maker of each dishonored check returned to Salt Lake
          Community College for additional collection procedures will 
          be assessed the current approved handling fee for each item
          returned.
 
     B.   If a dishonored check is for tuition, and an acceptable
          repayment response to normal and prudent collection efforts
          is not received within the stated period, the student will
          be administratively withdrawn from school.
 
     C.   Each dishonored check not reimbursed to the College will 
          result in a hold on the student's records, including copies 
          of grades, transcripts, or diplomas, and on future 
          registration until the amount thereof has been paid or 
          otherwise satisfied.
 
     D.   In accordance with 7-15-1, Utah Code Annotated 1953, 
          appropriate civil legal action may be filed for the full 
          amount of returned checks due and owing together with 
          service charges, interest, court costs, and attorney fees 
          as provided by law. In addition, foregoing civil action 
          does not preclude the rights of prosecution under the 
          criminal code of the State of Utah.
 
 
IV.  APPEAL
 
     Students who feel they have been subjected to unjust treatment 
     or denied their rights by action taken under terms of this 
     policy, shall have the right of review and redress according 
     to the Student Grievance Policy in effect at the time of appeal, 
     provided said appeal is initiated within twenty (20) school 
     days from the date the grievance occurred.
 
 
V.   PROCEDURES
 
     A.   Dishonored checks returned to Salt Lake Community College 
          will be turned over to "CHECKRITE" or other similar 
          agency for collection purposes.  Each returned check will 
          be assessed a $10.00 handling fee plus additional collection 
          costs as might be incurred.  A "Stop Payment" will 
          be treated as any other dishonored check.
 
     B.   If the dishonored check is for tuition, and an acceptable
          response has not been received within ten (10) days from 
          the date returned to the College, the student, upon 
          recommendation of the Collections Office, will be 
          administratively withdrawn. 
 
     C.   Each dishonored check not reimbursed to the College will 
          result in a hold on the student's records, including copies 
          of grades, transcripts, or diplomas, and on future registration 
          until the  amount thereof has been paid or otherwise satisfied.  
          It will be the responsibility of the Collections Office to 
          release record holds at such time as checks are redeemed.
 
 
 
For More Information, Contact: 
Nancy Sanchez 
Director of Risk Management
(801) 957-4041
E-mail:  nancy.sanchez@slcc.edu
 
http://www.slcc.edu
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