As a group just over a year old, we got our first hot check return a couple of days ago. Could any of you share the letter you send with me so that I can present one as an example at our next executive meeting? Do you have a policy adopted to deal with this issue? Any and all help is greatly appreciated!
I personally feel like making collection calls is not something I want to do. We use an outside group. We had a Fall sale that was about $16,000 and got around $500 in bad chacks. This is down considerablly from previous years but is still more than I would like to see. Our outside group also handles lawsuits when these items go unpaid. The reality is, you will always have these things happen but having a system in place so the bad check goes from the bank right to the collector is something that will help your group run smoother in the long run.
The irony of commitment is that it’s deeply liberating-in work, in play, in love. The act frees you from the tyranny of your internal critic, from the fear that likes to dress itself up and parade around as rational hesitation. To commit is to remove your head as the barrier to your life. --Anne Morris
In your case, I think I would make a visit to the local D.A.'s office. Writing bad checks is a crime and it looks like the folks in your area aren't respecting that or your school. $500 is quite a bit, but it might be a pitance of what the sale brought in in good dough. We just turned over $200 in checks to our D.A. Our sale brought in $30,000 (53% was ours) and while $200 isn't that much in the whole scheme of things, I just can't see some folks having to pay for their items while others don't. We tried calling several times. Then the obligatory letter went out. Now it is time for the law to handle it. I don't know about you, but I hate it when people say "I didn't realize"... of course they do! Even if it is an error or a one-time thing, they still know it bounced. Turn it over to the D.A. They do it for free and recover not only the amount the check is written for, but bank fees too!
This is one discussion that I would rather not have to participate in, but the awful truth is that our PTO has already incurred over $500 in bad checks & fees.
I found a free service that recovers bad checks. The company actually charges the writer their fee and sends the merchant what is owed.
Currently, we send letters to the bad check writers followed by a "courtesy call" and collected only about a quarter of what we lost.
My question is, if your group incurred $500 in bad check fees in the first few months of the school year, would you go to a third party to recover the fees?
