(Administrative Ruling)

General Policy: Each individual is sent written notification that his or her check/Automated Clearing House (ACH) has been returned, requesting redemption, either by cash, money order, or certified check, plus a service charge within a period of three (3) weeks.

1. Check/ACH negotiated for the purpose of registering, including payment of holds, tuition, board and room:
Immediately upon receipt of the unpaid check/ACH by the University, a financial hold is placed against the student. Written notification is sent to each student indicating that a check/ACH was returned and requesting the student to redeem the check/ACH or contact the Cashier’s Office within three (3) weeks. The notice also indicates that the student’s registration may be cancelled if the check/ACH is not redeemed by the due date on the notice. A student whose registration has been cancelled may be allowed to reregister during the semester subject to class availability, department approval, and the payment of all outstanding obligations with certifiable funds. A service charge of $75 is assessed unless the student presents a letter from his or her bank stating that the bank made an error. The $75 service charge is comprised of a $25 returned item service charge and a late registration fee of $50.

2. Check/ACH negotiated for reasons other than registration:
Written notification is sent to a person indicating that his or her check/ACH has been returned. This notice requests redemption of the check/ACH within a period of three (3) weeks by cash, money order, or certified check plus a $25 service charge.

a. Non-Student Check/ACH – If there is no response to the notice, a follow-up letter will be mailed allowing three (3) more weeks in which to pay. If unpaid by the due date on the notice, the check/ACH is charged back to the department concerned. If the check/ACH amount and service charge totals $25 or more may be turned over to Delinquent Receivables and may be referred to a collection agency.

b. Student Check/ACH – Immediately upon receipt of the unpaid check/ACH by the University, a financial hold is placed against the student. If the check and service charge remain unpaid, the account may be turned over to Delinquent Receivables for collection.

3. Check/ACH negotiated when it appears that the individual has full knowledge that funds were not available or the person admits to securing money under false pretenses:

a. If the individual or student fails to make restitution as a result of normal follow-up procedures, and it appears that the individual has full knowledge that funds were not available, or the person admits to securing money under false pretenses, the case will be reviewed for possible prosecution.

b. Individuals wishing to make restitution on a check/ACH referred to the MSU Police Department must make restitution at that office.

4. Bad Check List:

a. A student, who has issued three (3) checks and/or ACH’s to the University that have been returned within a 12 month period, will be sent written notification that his or her name is being placed on the Bad Check List. A student whose registration has been cancelled for nonpayment of a registration check/ACH will be immediately placed on the Bad Check List. All future payments to the University must be by cash, money order, or certified check.

b. Placement on the bad check list may be cause for denying future short term loans.

c. A student may request that his or her name be removed from the Bad Check List one year from the date his or her last returned check/ACH was paid in full by completing a form in the Cashier’s Office.

5. Other Sanctions:
In addition, the University reserves the right to take one or more of the following actions:

a. Refer past-due unpaid returned checks/ACH and service charge to an external collection agency and report the balance to a credit bureau.

b. Refer the student to the Office of Student Affairs and Services for disciplinary action.

c. Bring action against the individual for the amount of a returned check/ACH not redeemed within 30 days of the date of the notification letter and $250 in costs. In addition, the court could rule that you must also pay the greater of $100 or two times the amount of the returned check/ACH. If you pay the total amount due within 30 days, no civil action will be taken against you.

    • Vice President for Finance and Treasurer
      • January 1, 1975

(Amended 1981, 1982, 1985, 1988, 1989, 1990, 1993, 1994, 1998, 1999, 2000, 2003, 2011)