Controller's Returned Checks

When a check that has been received and deposited by the University is returned by the bank because the issuer has insufficient funds in their account or their account has been closed, specific steps must be taken to ensure that the “bounced” check is properly accounted for and that follow-up collection efforts are made with the original check issuer.

Processing Steps

By arrangement with the banks, insufficient funds (NSF) checks are typically returned by the bank to the attention of the Controller. The Controller’s Office will then contact the department originally depositing the check to obtain account numbers to be charged for the returned check. A $25 processing fee will be charged to that same account.

After the appropriate entries has been made by the Controller’s Office, the NSF check will be returned to the department who has the primary responsibility for following up and collecting the monies due the University.

If the check was a student’s check, the student’s billing account will be charged for the NSF check and the associated fee. Notice will be provided to the student of the NSF status. Payment is expected immediately after notification of the returned check. In addition, a hold will be placed on the student’s account in Student Billing.

Only three NSF check will be allowed before the check writer will be placed on the No More Checks List, indicating that the privilege to cash checks at the Cashier’s Window has been revoked.