I think most bad checks are mistakes and the people who wrote them are terribly embarrassed. That said...
I write checks for everything. I use the cancelled check as my receipt 99% of the time... That said...
The year before I was prez of our group, there were a lot of bad checks. Most were recovered (at least to my knowledge). I asked the then prez why we didn't send a note home with the packets or ON the packets that tell people we will go after bad checks to the full extent of the law. She told me we couldn't do that. I think she was just too nice... She and the veep at the time considered small losses part of doing business. I can understand that theory. MY OWN theory, however, is to let them know we are going to collect one way or another...
When I took over as prez, I made sure to put the word out that we would be turning bad checks over to the Sheriff's Department (our bad check collectors...lol...), that we would be recovering the cost of the bank fees, plus any monies we could by law charge.
Guess how many bad checks we got during the year I was prez? Two. I called them both. I got a hold of one and she promptly came down, paid cash plus a $15 fee (the bank didn't charge us but it was a hassle for us nonetheless). The other had a disconnected phone number. I sent a letter. I went to the bank several times to collect. After 2 weeks, 2 letters and 2 attempts to collect from the bank, I turned it over to the Sheriff. Two weeks later, we had our money. And just so there is no question, both checks were for less than $20 each.
I think you have to have a strong 'bad check' policy and you have to let people know you will use whatever means necessary to collect. If they know you mean it...
I think part of the reason we didn't see more bad checks during my time in office was because people had no doubt I would take what ever steps necessary to collect. This year's prez has not been so lucky...
We no longer take checks. We ask for everything in cash or money order. Those who send checks get them back asking for cash or money order instead. So far it has not been a problem.
We have had a horrible time lately with bad checks. We have fortunatly ben able to recover all of them this year, and we did it this way.
When they wrote us a check, we made sure they put their DL#, alternate phone number and DOB on the check. If the check was for a fundraiser, we collected money 1st, and if the check didnt clear, we notified them and if they paid for it they got their stuff, if not, they didnt. If we couldnt get a response, we called the bank the check was drawn on every friday until the funds were avaialble. We never involved the principal, basically because we never involved her before we took the check so why should we after. We are seperate from the school as far as money goes. Look into a check collection system, it is minimal money, and pays for itself quickly.
Cally our local preosecuting attorneys office, they have free packets available to assist you in theft by check collections.
We didn't have a "formal" policy, though I thought it was better to be proactive than reactive. Fortunately all bad checks have been recovered, but I did contact the local police in our town and ask for the local governing body's policy which they were most willing to provide, so we've got that in our back pocket should it ever be necessary. It's only a phone call away - could be your local police department or county (Parish in Louisiana) district attorney's office. Either way - a policy does exist.
Now - I would urge against getting the principal involved. Although never conscious or deliberate - the less said to the fewest amount of people, the better. While there are those who knowingly write bad checks, the majority of people writing them to PTO it's an accident. We are not always privy to the financial woes of those around us, and my personal opinion is just to keep it as private as possible, but also, if you have this occur regularly from the same people tell them (in private) that they will be asked to be on a "cash" basis with the PTO from here on out.
Our organization is having some problems recovering money from bad checks. I am looking for information to develop a written bad check policy.
Specifically, steps (call, send letter, involve principal, and/or contact police) and timelines i.e. call, when no response follow with a letter in 10 days, no response 30 days do this, etc.
I really value your ideas, suggestions or copies of your policies!!!
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