NSF Check Collection
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NSF Check Collection: NSF stands for ‘Non-Sufficient Fund’ in reference to checks. A consumer writes a check and it is presented back to the consumer’s bank for reimbursement. If there are not enough funds in the checking account to cover the check, it becomes delinquent, or, Non-Sufficient Funded (NSF). NSF Check Collection refers to the enlisting/hiring of a company (collection agency) to collect the face amount of the delinquent check from the consumer.
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First Recovery Solutions offers a delinquent check recovery program, CHECK-UP. The CHECK-UP program handles the collection of non-sufficient fund (NSF check), account closed, and no signature checks.
When you list your delinquent checks in First Recovery Solutions CHECK-UP program, a return check charge of $35.00 is assessed to the consumer for each delinquent or NSF check (That is how First Recovery is paid) First Recovery Solutions will provide you with ‘CHECK-UP’’ point-of-sale notification signage. This signage provides notification to the check writer that their check is subject to electronic re-presentment should it be returned NSF and will often act as a deterrent itself. If a customer issues their check to the merchant after having had the benefit of the notification, then that is considered authorization or permission by the consumer to permit the merchant or merchant’s agent to electronically re-present their check, should it be returned delinquent. The check must be under $2,500, less than 180 days old, and have not been presented for payment to the consumer's banking institution more than 2 (two) times at the time of re-presentment.
The check re-presentment program is available only to electronically collect the face value of the check. Once collected, that face value amount is then remitted to the client, leaving the remaining $35.00 NSF fee. At this point the account is still considered ‘open’ and worked as a normal unpaid collection account until the NSF fee is paid in full to First Recovery Solutions by your customer.
Should a check not be ‘re-presentable’, (account closed, past 180 days, etc.) First Recovery Solutions will attempt to collect on the check and $35.00 NSF fee using normal collection methods.
If the delinquent check is not paid using normal collection methods, a lawsuit becomes necessary, and the account meets First Recovery Solutions litigation criteria, all court costs and fees are fronted by First Recovery Solutions.
Delinquent Checks and Wisconsin State Law:
Per Wisconsin State Law:
The check writer is liable for all reasonable costs and expenses in connection with the collection of the check or draft. Wis. Stat. 403.414 Sec. (7).
In certain limited situations, a person who receives a worthless check (i.e., payee) can hold the writer of the check liable for additional damages. In these situations the payee may bring a civil action under section Wis. Stat. 943.245(1m). If a judgment is awarded to the payee under Wis. Stat. 943.245 the court may award:
a) The face value of the check;
b) Any actual damages not covered in item (a);
c) Exemplary damages of not more than three (3) times the amount of items
a) and b);
d) Court costs and reasonable attorney fees;
e) Total awarded for exemplary damages and attorney fees may not exceed
$500 per check.
