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BOUNCED CHECK POLICY

22 years 8 months ago #95508 by KC Swan
Replied by KC Swan on topic RE: BOUNCED CHECK POLICY
<BLOCKQUOTE>quote:</font><HR>every phone # the school has for her, including emergency #s is disconnected. <HR></BLOCKQUOTE>

Responding to the second part first, it sounds to me like you might have a family in financial troubles. Allowing the phone to be disconnected is often one of the first things people who cannot pay their bills will do. If you'll be so kind as to steady the soap box while I use it to climb up on my high horse, you might want to look into what help they need before you worry about getting your cash.

<BLOCKQUOTE>quote:</font><HR>Pick-up is next Wednesday, and I'm just not going to give the orders to people that have not settled their account.<HR></BLOCKQUOTE>

We always get a certain number of bad checks. That is part of the "cost of business". Our profit margin is around 50%, part of that ends up going to cover the bad checks.

We've considered holding the merchandise. But that gets the selling family involved. In the world of business, salesmen usually don't get their commissions until the invoice is paid; but these aren't commissioned salespeople. In fact, one of the arguments for discontinuing the prizes for selling items was the issue of a kid who barely makes the prize level but has bounced checks.

The bounced check has never been from the actual school family, but I'm not so sure we should even hold the merchandise then. If you can show me a way to do it without embarassing the parents in front of their children, then I'll reconsider.

It has never been a case of a significantly large order. I'm not sure what we would do then. But for normal orders, you try and contact the people to have them make good, and you eat the cost of those who won't.
22 years 8 months ago #95507 by SFilak
BOUNCED CHECK POLICY was created by SFilak
I am fundraising chair for our K-6 elementary school. This year for some reason, we've had an abundance of bad checks written to the PTA. At our meeting this past Friday, I brought this up, and was asked to get together with the treasurer to write a policy on how to handle bad checks. Up til now, there has been no "official" policy, but it has never been that big of a problem. The treasurer and I called all of the offenders, most made good on the checks and fees, but it is unbelievable that some people have yet to respond, (fundraiser ended sept. 26 and checks started coming back the following week) some are even ducking my phone calls. Pick-up is next Wednesday, and I'm just not going to give the orders to people that have not settled their account.

I guess my question is: Does anyone have any suggestions on what we should put in our official policy? Does anyone have a policy that I could use as a reference?

Any input would be greatly appreciated!!

Suzi

ps...I just have to get this out, one parent who wrote us a bad check has a child in 2nd grade, every phone # the school has for her, including emergency #s is disconnected. God forbid if something happened to her child, no one at school can get in touch with her. Sorry for the rant, but that just irks me to the core!!!!!!!!!!!
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