Bad check writers beware: UA officials have a new plan of attack

Ian Mayer Arizona Daily Wildcat Nancy Hanson, accounts receivable manager for the Bursar's Office, explains the UA's bad check policy to a Wildcat reporter yesterday in UA Attorney Thomas Thompson's office in the basement of the Administration building. Starting tomorrow, the UA will initiate minor changes in its long-standing policy.

Students who write bad checks will be slapped with a $25 fee - a $10 increase. But in some cases, they may be charged double the amount of the check or $50 - whichever is higher.

The check policy revision, effective tomorrow, was prompted by an increase in bank-imposed returned check fees and a change in state law that defines a time limit for repayment.

"Overall the UA does not have a problem with a high ratio of dishonored checks," said Nancy Hanson, account receivable manager in the University of Arizona Bursar's Office.

One-fifth of 1 percent of all checks the office receives bounce, she said.

Students will receive a "Dishonored Check Notification Letter" and be hit with a fee unless a bank error or a late-dated check prevents it from clearing.

"It's kind of educational to pay a $25 charge if you don't watch your checkbook," UA attorney Tom Thompson said.

He said the UA has the state-granted authority to collect twice the amount of a dishonored check and it will exercise the right to do so, if forced. If, for instance, a student forges a $994 tuition check, the bursar can charge $1,988 plus attorney's and collections fees.

"If you abuse the system we'll exercise our rights," Thompson said. "We are not going to sit around while a student is out writing bad checks."

The amount of time to repay a dishonored check under Arizona state law was 14 days, but has been cut to 12 days.

Hanson said students enrolled in classes have always been cut extra slack. They can attend school for a semester after writing a bad check, but will not be able to register for more classes, receive refunds, transcripts or graduate, she said.

"As long as a student is currently enrolled, the Bursar's Office will try to collect this fee," Hanson said.

UA officials will hire a collection agency to get their money out of debtors who no longer attend class.

"Once you're no longer enrolled, that's when pre-collection services are initiated," Hanson said. "When it goes to the collection agency we ask for the statute entitlements."

The UA Attorney's Office becomes involved when the collection agency fails to make the debtor cough up the dough and reserves lawsuits as a final option, Thompson said.

After students write three bad checks, they need to find another way to pay for a year. The fourth disables students from ever writing a check to the university again.

The likelihood of successfully collecting money from a student varies, Thompson said.

"In the worst case scenario: a student pays with an insufficient funds check, walks out (of the Bursar's Office) and gets hit by a bus - chances of collection are slim," he said. "The best case scenario is a second-semester senior whose check bounced because he forgot to deposit his paycheck - chances are he will pay us as soon as he is notified."

Psychology junior Jenny Strange said the policy induces students to be more responsible with their finances.

"I think that's fair because you should be responsible to know if you can write a check or not," she said.

Michael Lafleur can be reached via e-mail at Michael.Lafleur@wildcat.arizona.edu.