FPM 5.8 Dishonored (Returned) Checks

Student Returned Checks

1. When a check is dishonored by a bank or financial institution, it will be returned to the Bursar’s Office (dishonored checks will be presented twice). The Bursar’s Office is responsible for initiating and monitoring all collection efforts for dishonored checks.
2. Items that can be corrected and redeposited (for example, endorsement errors) will be redeposited immediately.
3. The Dishonored Check Notification Letter will be completed and mailed by certified mail to the individual. Restitution must be made within fourteen (14) days of receipt of the letter.
4. An attempt will be made to contact the individual by phone.
5. The individual's Student account will be flagged with a financial hold (AR) flag and the "bad check counter" will be increased.
6. A $25.00 dishonored check fee will be assessed and posted to the individual's Student account.
7. The individual will be ineligible for registration, registration refunds, transcripts, diplomas or other University services until payment is received in full.
8. Bursar-Accounts Receivable will track the returned item as long as the student remains enrolled. When the student is no longer enrolled, precollection efforts will begin, and if unsuccessful, the debt will be assigned to a collection agency. Collection costs are passed on to the debtor as identified in A.R.S section 12-671.

Department Returned Checks

1. When a check is dishonored by a bank or financial institution, it will be returned to the Bursar’s Office (dishonored checks will be presented twice).
2. Items that can be corrected and redeposited (for example, endorsement errors) will be redeposited immediately.
3. The returned item can be charged back to the original depositing Department account via UAccess Financials by Financial Management. 
4. A copy of the returned item will be attached in the notes section of the Distribution of Income and Expense document.
5. The original depositing Department is responsible for initiating and monitoring all collection efforts for dishonored checks.
6. Departments may be charged for the check and related bank service charges, determined by the Bursar’s Office, in the following instances:
   1. A stale dated, two-party, or foreign check was accepted,
   2. An exception to the University cash handling procedures outlined in Policy FPM 5.5 Cash Receiving, was made when the check was accepted,
   3. The maker's name and address cannot be found,
   4. The check was forged,
   5. A check was accepted from an individual whose check privileges are suspended,
   6. "Stop Payment" items which cannot be resolved through research, and
   7. When requested by the department.