37 Tex. Admin. Code § 1.233 - Charges for Dishonored Checks
(a)
Purpose. Texas Business and Commerce, §3.506, authorizes the holder of a
dishonored check seeking collection of the face value of the check to charge
the drawer or endorser of the check a reasonable processing fee, not to exceed
$30. This section prescribes policies and procedures for the processing of
dishonored checks made payable to the department and the collection of fees
because of the dishonor of a check made payable to the department.
(b) Definitions. The following words and
terms, when used in this section, shall have the following meanings, unless the
context clearly indicates otherwise.
(1)
Department--The Texas Department of Public Safety.
(2) Dishonored check--A check, draft, order,
or other instrument that is drawn or made upon a bank or other financial
institution, and that is not honored upon presentment because the account upon
which the instrument has been drawn or made does not exist or is closed, or
does not have sufficient funds or credit for payment of the instrument in
full.
(c) Processing of
dishonored checks. Upon receipt of notice from a bank or other financial
institution of refusal to honor a check made payable to the department, the
department will process the returned check using the following procedures:
(1) The department will send a written notice
by certified mail, return receipt requested, to the drawer or endorser at the
drawer or endorser's address as shown on:
(A)
the dishonored check;
(B) the
records of the bank or other financial institution; or
(C) the records of the department.
(2) The written notice will notify
the drawer or endorser of the dishonored check and will request immediate
payment of the face amount of the check and a $30 processing fee. The written
notice will also contain the statement required by Texas Penal Code, §
32.41(c)(3).
(3) The face amount of the check and the
processing fee must be paid to the department with a cashier's check or money
order, made payable to the Texas Department of Public Safety.
(4) If payment is not received within 31 days
after the date of receipt of the notice, the obligation will be considered
delinquent and will be processed in accordance with §
1.232 of this title (relating to
Collection of Debts).
(d) Supplemental collection procedures. In
addition to the procedures described in §
1.232 of this title, the
department may notify appropriate credit bureaus or agencies if the drawer or
endorser fails to pay the face amount of a dishonored check and the processing
fee, or may refer the matter for criminal prosecution.
Notes
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.