New Hampshire Refinancing

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Returned Check Costs

• Collection Efforts
• Employee Expense
• Cost of Correspondence
• Cost of Postage
• Loss of Revenue
• Bank fees
• cost of returned check
• cost to redeposit check

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Returned Check Processing (RCK)

• Represented Check
• An ACH debit transaction used to collect a paper
  check that has been returned as uncollectible

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RCK Eligibility

• Check must be in amount less than 2,500
• Check must indicate on the front that it was
  returned NSF/uncollected funds
• Check must not be stale dated
• Check must be drawn on a consumer account
• Check was previously presented no more than once
  in paper form

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Other Requirements for RCK

• Notice must be provided to consumer informing
  them on the re-presented check policy
• Notice must be clearly displayed on a sign at
  the point of collection or included on billing
  invoice
• Include in notice that a separate transaction fee
  will be collected electronically

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RCK Costs

• Cost to modify deposit endorsement stamp
• Notification Signage/changes to billing invoice
• Bank fees
• RCK processing
• Returned check forwarding

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Sample Notice

• In the event that your check is returned unpaid
  for insufficient or uncollected funds, we may
  re-present your checks electronically. In the
  ordinary course of business, your check will not
  be provided to you with your bank statement, but
  a copy can be retrieved by contacting your
  financial institution. A fee of __ will be
  charged for each return check and collected with
  a separate electronic transaction.

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Benefits of RCK Process

• Preferential posting of ACH items
• Expedited collection of NSF uncollected funds
  checks
• Ability to target collection date
• Improved collection rates (50-80)
• Improved process efficiency
• Fees collected pay for program and provide income
  for the state

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Goals for RCK Program

• Reduce the number of returned checks
• Increase revenue
• Reduce collection efforts

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New Hampshires RCK Experience

• Implemented program with Division of Motor
  Vehicles in 2003.
• Reduced returned check volume by over 30.
• Reduced license suspension volume by over 25
• Increased protested check fees by over 55.

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www.nh.gov/treasury