Office of the Controller

UNIVERSITY OF NORTH CAROLINA AT CHAPEL HILL

The University of North Carolina at Chapel Hill CB# 1270, 440 West Franklin Street Chapel Hill, N.C. 27599-1270

 

TO:	Deans, Directors, and Department Heads
FROM:	Dennis A. Press  University Controller
RE:	Collection of Returned Check Fees

If your unit collects payments for goods or services by way of check, the following information may be of use. If your unit does not receive and deposit checks, you may wish to disregard this memorandum.

The returned check fee has been increased based on a change in legislation. The NC Office of State Controller recently provided information regarding this change. The maximum charge that may be collected for returned checks has been increased from twenty dollars ($20) to twenty-five dollars ($25). The purpose of the policy regarding collection of returned check fees is to ensure that the University is reimbursed for costs associated with the collection of a returned check and that the appropriate fund is credited with the reimbursement.

The Business Manual will be updated with the following policy statement.

A processing fee, not to exceed twenty-five dollars ($25.00), may be charged and collected for checks on which payment has been refused by the payer bank because of insufficient funds or because the drawer did not have an account at that bank if at the time the consumer presented the check to the person, a sign:

     (1)  was conspicuously posted on or in the immediate vicinity of the cash register;

     (2)  was in plain view of anyone paying for goods or services by check:

     (3)  was no smaller than 8 by I I inches; and

     (4)  stated the amount of the fee that would be charged for returned checks.

Departments must deposit the returned check fee into the fund that provides the majority of the support for the following:

• the position responsible for collecting the fee
• other expenses incurred in collecting the fee.