Feb 28, 2024  
DMACC Policies and Procedures 
    
DMACC Policies and Procedures
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BS5790 - Insufficient Funds Checks and Stop Payment Checks


Procedure

Section: BUSINESS SERVICES PROCEDURES

SubSection: BUSINESS OFFICE

Master List Section: Business Service

  1. Institutional Regulations

    When a check deposited by the College is not credited to the College’s account because payment has been stopped on the check or funds are insufficient to clear the check, it is the responsibility of the Business Office to collect any and all amounts owed to the College.
     
  2. Procedure
    1. Returned Checks for “Stop Payment”:
      1. The Business Office will charge the amount back to the appropriate accounts receivable.
      2. If the payment relates to student tuition, the Business Office shall notify Student Accounts to withdraw the student from all classes and the Student Accounts Office will withdraw the student effective as of the date the Stop Payment was received. Any tuition refund due the student will be posted to the student’s account.
      3. The Business Office will be responsible for collecting any and all amounts due.
    2. Returned Checks for “Insufficient Funds”:
      1. The Business Office shall mail an initial Notice requesting payment in the form of cash, cashier’s check, or money order within 10 calendar days of the Notice, plus a fee for each returned check.
      2. The Business Office shall mail a Final Notice if payment is not received within ten days. The debtor will be advised that additional collection efforts will begin, if payment is not received within 20 days of this Notice.
    3. Collection Efforts:
      1. Returned checks which are not cleared within 30 calendar days from date of original Notice to the Payee will be submitted to a Collection Agency.
      2. The credit bureau will be notified.
      3. Legal action will be considered at the recommendation of the Collection Agency. The Business Office will approve all litigation.
    4. Failure to pay for returned checks may result in:
      1. A freeze on the availability of the student’s official credentials and
      2. A bar on future registration.


Adopted: July 1, 2000



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