NEWS RELEASE
Returned Checks
In an effort to curb the internal cost our District bears each year in returned checks (Non Sufficient Funds-NSF, Account Closed, Fraud and Stop Payment), we have contracted with Automated Recovery Solutions.
ARS provides this service to numerous School Districts around the country and will now be in charge of collecting checks for our District that are not honored by check writers banks. For NSF checks, ARS will electronically monitor a bad check writer’s account and are authorized to make (2) electronic attempts for the Face amount of the check plus a state authorized Returned Fee as follows:
Amount of Check Written Return Fee
$.01 to $50.00 $25.00
$50.01 to $300.00 $30.00
$300.01-$800.00 $40.00
$800.01 - Plus 5% of Face of Check
If a check is returned Account Closed, Fraudulent, Stop Payment or the NSF Item is unable to be electronically recovered due to a zero balance, letters will be sent in which the check writer must pay the Full Face amount plus the above authorized state Fees within (15) business days. If not, the bad check writer can be referred to a state attorney’s office where they will be charged the Face amount of the original check, plus (3) times the Face amount in Fees, plus costs, as allowed per the state.
This is a free service to the District through ARS. We will receive 100% of all Face amounts collected on our behalf and 40% of any Fees collected. Our loss in returned checks over the past (5) years as a District was $30,000. This loss that our District has incurred has unfortunately taken away much needed resources from our students.
This solution will reduce our cost of collection to $0, increase our recovery rates to near or over 100% and get these much needed funds back into our District to benefit the students; where they belong.
This policy change will be put into effect to coincide with the start of the new school year. Should you have any questions or need additional information you’re welcome to contact the District at 941- 708- 8800 or contact Automated Recovery Solutions at 800-390-3948 or visit their website at www.automatedrecoverysolutions.com.
