CS 560P Bad Checks
01/04/89 Revised 04/06/17 Training Completed 04/20/17
Bad checks are created when a non-custodial parent (NCP), employer, or other payor made a payment to the Office of Recovery Services/Child Support Services (ORS/CSS) that was not honored by the payor’s financial institution due to non-sufficient funds (NSF) in the account, refer to maker (RTM) because the bank suspects fraud, stop payment, and for other reasons. Once the Employer Agency Customer Services Unit (EACSU) is notified of the bad check, EACSU will initiate a reversal of the ORSIS transaction to subtract the credit the NCP received from the original posting of the payment.
If the bad check payment disbursed to and was redeemed by the custodial parent (CP), the take back transaction on ORSIS will create a Team 67 overpayment case and a bad check debt under the CP’s Participant I.D. (PID) number. The overpayment case is used for the CP to repay the amount of the bad check to ORS when either a replacement check is provided for the amount of the bad check or when EACSU redirects future payments from the CP’s child support case to the overpayment case. Payments applied to the overpayment case will first post to the NCP’s PID with the original receipt date and will then be redirected to the CP’s bad check debt.
If a CP calls to find out why s/he did not receive a payment that posted to an overpayment case, explain to the CP that the payment was used to repay a bad check on his/her case that was previously disbursed to and redeemed by him/her. You may refer the CP to EACSU at 801-536-8333 or email@example.com, if s/he has additional questions about his/her Team 67 overpayment case.
Bad Checks from a Non-custodial Parent
When a check from an NCP is returned for non-sufficient funds, EACSU will take the following actions:
1. Type an “N” (No) to code the NCP’s PID to not accept checks from the NCP;
2. Type a “Y” (Yes) to resume accepting checks from the NCP once the bad check issue has been resolved.
Bad Checks from an Employer
When an employer’s payroll check is returned for non-sufficient funds (NSF), EACSU will work with the ORS Director of Financial Services, as appropriate, to determine if ORS will accept future check payments from the employer. If it is determined that ORS will not accept any additional checks from the employer, EACSU will update ORSIS appropriately.
Notify EACSU When an Employer or NCP Check Will Not Be Paid
If you are notified by an employer or an NCP that a payment sent to ORS/CSS will not be paid by the employer’s/NCP’s financial institution due to a stop payment, non-sufficient funds (NSF), or for another reason, follow these procedures:
1. Advise the employer/NCP that you will refer him/her to the Employer Agency Customer Services Unit (EACSU).
2. Provide him/her with the EACSU telephone number in the event the call is disconnected. The EACSU phone number is 801-536-8333.
3. Transfer the employer/NCP to the EACSU. Remain on the line to notify EACSU that the call is about a bad check and provide EACSU with the name of the person being transferred along with the applicable case number(s) or PID before completing the transfer.