PHASE 1 CHECK RECOVERY
NorthStar works for about 60 days to collect NSF checks
and this involves a three step collection process. They work the bad check
writer's bank account
for funds, send out multiple collection letters, and report bad check writers to
the National Check Network, a negative
database used by nearly 200,000 businesses including Wal-Mart®.
Most
NSF checks can be collected with this free process and you would receive the
full face value back plus an additional $5-7.50 back per check from the state
bad check fee (www.bumchecks.com/statefees).
This service is completely free to businesses;
NorthStar's profit comes from the fee paid by the bad check writer.
PHASE 2 CHECK RECOVERY
If NSF checks cannot be collected in the phase 1
process described above, or you have a stop payment or closed account check,
NorthStar offers an optional and intensive "in-house" secondary
collection service.
Secondary collection efforts include collection
phone calls, credit bureau reporting, District Attorney intervention, and
possible legal action.
Checks recovered under this program are "split"
between NorthStar and its clients.
You receive 50% of the collected bad check fee plus
50% of your check's face value.
Corporate clients usually have sufficient volume of
returned checks to receive a higher percentage, such as a 65/35 split.
If you choose this service you may let checks go to phase 2 "automatically" or
you may be "selective" about second phase collections.
"Automatic" means NorthStar will move checks to
phase 2 as appropriate--you do not need to do anything.
If you choose to be "selective," NorthStar will not
process a check as a phase 2 item unless you log on to its web site and "select"
that check for second phase collection.
If most of your checks are under $250.00, I
recommend selecting "automatic."
National account representative for NorthStar
Technologies