May 2007

Policy

A Patron who issues a check to the library which is subsequently returned as unpaid for whatever reason will have a block placed against his library card for the amount of the check plus a $25.00 service charge. The $25.00 charge may not be waived. Patrons may pay the returned check charges with cash, money order, traveler's checks, Visa or Mastercard. Checks will not be accepted as payment for a returned check.

Rationale

The County is charged $25.00 by the bank for each unpaid check. This charge cannot be waived because the library has already paid the bank this amount.

Procedure

1. The patron's bank determines that, for whatever reason, the check cannot be paid. This may be due to non-sufficient funds, account closed, stop payment, refer to maker, etc. The bank notifies the patron that the check has not been paid. The County has an agreement with our bank that a second attempt to collect payment from the patron's account will be made. If neither attempt is successful, the bank returns the check to the County and charges $25.00 for the two attempts at collection.

Two attempts at collection are made, as many patrons deposit money in their account to cover the check as soon as they realize the problem. By allowing this extra time, the number of checks that are returned as unpaid is reduced.

2. Accounts Payable sends all returned checks issued to the library to Central Circulation Services.

3. Central Circulation Services bills the patron for the amount of the check and the $25.00 bank fee. These charges may block the patron's record from use.

4. Circulation Services keeps the check in the file at the customer service desk.

5. When the patron comes in to your agency and pays for the check and the fees:

a. No returned check charges may be waived. Patrons may pay the returned charges with cash, money order, traveler's checks, Visa or Mastercard. Do not accept a check as payment.

b. Collect the payment from the patron.

c. Print out the detailed fine display.

d. Select the returned check charge and click on Collect Money to clear it from the patron's record.

e. Ring in the total of the check and the fees, as shown in the ILS, and place the print out and the money in the cash register.

f. Ask the patron if they would like the copy of the check that is on file at Circulation Services mailed to them or destroyed. The person accepting payment is responsible for notifying Central Circulation at X86019 about disposing of the check.

6. Document the returned check charge in the Notes section of the Daily Cash Reconciliation form and send the print out of the returned check charge with the reconciliation and deposit receipts.