BAD CHECKS
**********
_(adapted from Appendix E of the Treasurer's Handbook)_
Bad checks can happen to good people. The vast majority of bounced checks
will be made good immediately. The only checks you as a treasurer are
concerned with are checks made out to the group, any requests for
information from merchants, non-SCA groups or individuals should be
forwarded to the seneschal.
RECOVERY STEPS
==============
If, at any point, the debtor wants to work something out with you, set up a
payment schedule. This schedule may extend over the course of few months,
but should not exceed six months. The recommended repayment plan should
include a down payment of one-third of the total debt owed. A letter
detailing the repayment schedule should be sent to the debtor with one copy
kept for your files. Indicate in all your correspondence that money orders
or cashier's checks are the only acceptable forms of repayment.
Otherwise, follow these steps one by one until you have exhausted all
efforts to recover the funds and any fees you have been charged, or it is
decided by the Financial Committee and someone higher up in the Kingdom,
that it is no longer worth pursuing.
·
Resubmit
--------
Sometimes checks may be submitted more than once, depending on your
banking institution. If the check was returned for insufficient funds,
try this after a week or so, to allow time for the person to have gotten
paid. According to Tetchubah, you might be able to call their bank and
see if there are sufficient funds in their account to cover the check.
Needless to say, if this works and there is enough money, redeposit the
check quickly! If your bank automatically deposits twice and then marks
"Do Not Present Again" then you are ready for the next step.
·
Contact by Mail
---------------
As soon as you get the check back from the bank, send a letter. In the
letter state:
· Who you are
· What happened with the check (account closed, insufficient funds)
· Date the check was written
· Check number
· Amount the check was written for
· Amount of any fees you have been charged
· Where to send payment
· When you expect a response (2 weeks from the letter date is
reasonable.)
If the amount is large, state that you are willing to work something out
if they cannot afford to pay the entire amount at once. Send a copy
(cc:) to your branch Seneschal, and keep a copy in your files. There is
a form letter below that you may use as a guide to help you write your
own letter.
If you know the person, feel free to phone them first, but make notes
about the call. I find it handy to at least have the letter printed out,
so I've got all the information I need right there. It also gives me a
place to write down the day and time I called.
·
Contact by Phone
----------------
If you don't hear from the person by the deadline you gave in your
letter, attempt to contact them by phone using the phone number on the
check. Have your copy of the letter you sent in front of you for
reference and note the day and time you called, or attempted to call. If
you leave a message, do not mention the check, just ask the person to
call you back.
When you get the person on the phone (and don't discuss this with anyone
but a person named on the check.)
· Don't accuse them of anything.
· State who you are and why you are calling.
· Tell them that the check was returned, that you are still owed the
original amount, and state that any fees which the bank charged you
are now also due from them.
· Let them know that you are assuming it was some sort of bank mistake
at their bank or a simple error that can be easily and quickly
corrected.
· Ask them when you may expect payment, and give them the name and
address of the person to whom payment (in the form of a money order
or cashiers check made out the the group) should be sent.
· Give them your address or phone number should they need to contact
you, and so they can let you know when the money order is being
sent.
· Let them know that you are willing to work something out if they
cannot pay the amount all at once.
If you have trouble reaching the person, try calling at odd hours within
reason -- they may work second or third shift. However, don't harass
them, or shift your schedule trying to contact them. If you call once a
day at different times for a week with no success, go to the next step.
Keep clear records of the days/times you called and save your phone bill
if they are toll or long-distance calls so you can be reimbursed by your
group (you should get this cleared by the financial committee in
advance.) Keep records of all contact attempts made, if the whole thing
gets turned over to the Kingdom, clear records will be useful.
·
Contact Branch for Information
------------------------------
If you have gotten no response to your letter and have not been able to
reach the person by phone (or if the phone is disconnected), contact
their branch Seneschal or Exchequer (if it is someone outside your
branch) to see if this is really worth pursuing. They may know the
person's new address if they have moved. They also may be able to let
you know if it is a lost cause.
·
Contact by Mail - 2ND ATTEMPT
-----------------------------
If your deadline passes with no response and you can't get the person on
the phone, contact the person by mail again, after checking with their
branch Seneschal for their most current address (the other letter may
have gotten lost in the mail). State the same information as on the last
letter, using today's date, but include the fact that you have every
right to report this bad check to a credit information network. Enclose
a copy of the first letter. Copy (cc:) their branch Seneschal and
Exchequer, your branch Seneschal, and your superior officer. (Their
branch officers aren't required to do anything, but just having someone
in their branch know they bounced a check can be enough embarrassment to
prompt them to cooperate. However, don't send copies to their
chroniclers.) There is a form letter below that you may use as a guide
in writing your own letter.
·
Re-evaluate
-----------
At this point the cost of recovering the funds may be greater than the
amount of funds due itself plus phone calls, postage, aggravation, etc.
You may decide to write it off as a Bad Debt at this time. Contact your
Financial Committee and your Kingdom superior and let them know the
status so that they can make a decision whether to drop the issue. At
this point, a letter from the Kingdom might be appropriate.
·
Write Off or Report to Legal Authorities
----------------------------------------
If you have not recovered the funds after six months or so, *AND* the
Kingdom Treasurer or your Regional Deputy agrees, write the check off as
a lost cause, and don't accept checks from this person again. Decrease
Receivables by the amount of the debt plus fees and expense the whole
amount under Bad Debt. You have the option of reporting the bad check
information to credit information networks, or, if the amount is large
enough, going to small claims court. Even if you get judgment in small
claims court, it is up to you to collect. The court won't help you any
further than order garnishment of wages - which you must ask for and it
costs you money to do that, too. Contact your superior officer for
information on how to proceed if either of these are the decision of the
branch or guild's Financial Committee. The Seneschal is responsible for
these types of legal issues.
·
How This Goes on the Report
---------------------------
· List each bad check and any fees you are charged as a receivable on
your report.
· Do not deduct the amount from anything, even if it was for site
fees.
· When you receive the funds from the person, just erase the
receivable (it's a transfer from Receivables to Cash.)
· Put the check on the report the quarter in which you get the notice
from the bank.
· The check stays on the report until:
· The check is made good (see above)
· The Kingdom Treasurer agrees that it is a lost cause (the check
becomes a bad debt)
----------------------------------------------------------------------------
TEMPLATE LETTER TO RECOVER FUNDS - FIRST TRY
============================================
Society for Creative Anachronism, Inc.
< branch name >
Office of the Chancellor of the Exchequer
< Your Address >
< Today's Date >
< Their Name>
< Their Address>
Dear < Their name>:
We received your check numbered _________ and dated _________ which was
written for $_________. It was deposited on ________________.
It has been returned by our bank due to < account was closed/insufficient
funds/explain other reason>, and we have been charged $____________. Please
send a money order for $________________ (outstanding amount plus our bank
fees) within 30 days of the date on this letter to the above address, made
out to 'SCA, Inc. -< branch name>', or contact me at the above address to
make other arrangements.
If there is a problem, please let me know so that a payment plan suitable to
both you and our organization can be arranged.
Thank you for your prompt attention to this matter.
Sincerely,
< Your Name>
< Your SCA Name>
cc: < Seneschal's name>, Chapter Vice President - < your branch name>
----------------------------------------------------------------------------
TEMPLATE LETTER TO RECOVER FUNDS - SECOND TRY
=============================================
Society for Creative Anachronism, Inc.
< branch name>
Office of the Chancellor of the Exchequer
< Your Address>
< Today's Date>
< Their Name>
< Their Address>
Dear Sir or Madam:
On ___________, I sent you a letter notifying you that our bank had rejected
your check numbered _________ and dated _________ which was written for
$_________. It was returned because < account was closed/insufficient
funds/explain other reason>. We have been charged by our bank $________.
In that letter, I asked you to please send a money order for $_________
(outstanding amount plus our bank fees) within 30 days of __________ to the
above address, made out to 'SCA, Inc. - < branch name>', or contact me at
the above address to make other arrangements. I have enclosed a copy of this
letter.
To this date, I have received neither a money order, any contact from you
regarding when I may expect the money order, nor a request to make other
arrangements. I realize that this may be a simple error. However, we are
entitled to report this incident to the credit information networks, and may
do so, if the situation is not remedied within 30 days of this letter.
Thank you for your prompt attention to this matter.
Sincerely,
< Your Name>
< Your SCA Name>
Enclosure
cc:
< Seneschal's name>, Chapter Vice President - < your branch name>
< Seneschal's name>, Chapter Vice President - < their branch name>
< Exchequer's name>, Chancellor of the Exchequer - < their branch name>
< Kingdom Exchequer's name>, Kingdom Chancellor of the Exchequer
This is not an official webpage of Calontir [1] or of the Society for
Creative Anachronism, Inc [2]. The maintainer of this page is Evelyn Alden
[3] (Katriana op den Dijk.) It is not a corporate publication of the Society
for Creative Anachronism, Inc. and does not delineate SCA policies. In cases
of conflict with printed versions of material presented on this page, the
conflict will be decided in favor of the printed version.
Copyright © 2015 Evelyn Alden. The original contributors retain the
copyright of certain portions of this site.
1: http://www.calontir.org/
2: http://www.sca.org/
3: mailto:calonkat@yahoo.com