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WORTHLESS CHECKS
The AP&R check collection system is simple and efficient. Your financial
institution sends all returned checks directly to AP&R, or you may send them
to AP&R yourself. AP&R immediately sends a letter to the worthless check
writer informing him/her of the worthless check. The tone of the first
letter is conciliatory and written not to offend your good customers who may
have simply made an error in balancing their checkbooks. For those check
writers who don't pay, progressively tougher letters are sent, informing the
check writer that fees will increase with delay and that a lawsuit will be
filed if payment is not made. When it becomes necessary to file a lawsuit,
AP&R pays all court costs and fees.
It is normal for our clients to receive the entire face amount of their
check plus a portion of any service charge their customer pays, right up to
the time a lawsuit is filed. This assumes that the check is less than thirty
(30) days old when AP&R receives it, and is also dependent upon the state in
which you do business, the service charge you choose and your specific
contract terms. Under the terms of several of our contracts, our clients
will receive the entire face value of the check, plus from $2.00-$4.00
(based upon a posted check service charge of $25) to assist them in
offsetting their bank's processing charge.
The writer of the worthless check must pay a fee in addition to the face
value of the check. That fee is how AP&R is paid. We will provide signs that
will notify your customers of this charge. The sign itself often acts as a
deterrent to bad check writers.
If, during our collection process, AP&R determines that criminal
prosecution of the check writer is your best alternative, we will return the
check to you with the documentation required to satisfy most state laws
concerning the issuance of worthless checks.
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