NSF check collection: how the process works
NorthStar begins by sending out collection letters. Here are two samples:
First courtesy letter
Second courtesy letter
These letters are joined with additional other collection tactics:
1. NorthStar immediately reports the MICR information on the person's check plus their driver's license information to the National Check Network (this prevents bad check writers from passing checks at nearly 200,000 merchants including Wal-Mart®). This process is even used with business checks. Suspending the check writing privileges of individuals as well as businesses is a collection tool many other services do not offer.
2. The NSF check writer's bank account is also checked for 60 days to see if there is enough money to pay what is owed on NSF checks. Checks from individuals (a consumer's account) can be processed with RCK (electronic check recovery). A different process is used for bounced business checks.
NorthStar's check collection process exceeds what most other agencies do and it will collect the greatest percentage of NSF checks using the process described above. Best of all, you receive back the FULL VALUE of your collected NSF checks plus 25% of the bad check fee--the most generous bad check rebate in the check recovery industry and the service is completely free to your business!
Uncollected NSF checks, all stop payment and all closed account checks (phase 2 check recovery)
If you desire this level of collection (it is a no-fees contingency split), NorthStar will engage in its maximum collection for up to eighteen months if necessary and return at least 50% of the fees it collects and 50% of a check's face value. During this process NorthStar uses collection phone calls, credit bureau reporting, district attorney intervention, and wage garnishment is a possibility (the broadest range of collection tactics is used). Bad check writers also receive more collection letters, three of which are below. NorthStar even offers and absorbs all the costs for "skip-tracing" when that is necessary.
NorthStar can meet your small business or commercial check recovery needs and you may sign-up instantly on-line. If you have any questions about NorthStar's services, please contact me.
Sample phase 2 collection letters
Initial contact letter
Follow up letter
Payment in full letter