Returned Check Process
A returned check is any check tendered to Augusta Utilities which is subsequently dishonored by the drawee bank. Returned checks are delivered to the Cashier when returned from the bank. The Cashier reviews the account. In the instance of no prior returned checks or when only one instance has occurred within the last year, the customer's account is charged with the returned check and a returned check fee of $20 or 5% of the total check, whichever is greater.
A copy of the journal is maintained in the Returned Check Register and the customer's account is flagged with a Returned Check (RC) tickler. A notice is mailed to the customer's business or residence by Augusta Utilities personnel indicating that the customer has 10 calendar days to make full payment. Payment must be made by cash, money order, or bank certified check. If payment is not made after 10 calendar days have elapsed, service is discontinued until all arrears are paid and an additional $25 delinquent fee is charged to the account.
If a returned check is received in payment of a delinquent account which has been previously cut off, water is cut off immediately when the notice is delivered to the door and an additional $25 delinquent fee is charged to the account.
Two Instances of Returned Checks
If a check is returned for a customer who has two instances of returned checks within one year the account is flagged with SPECIAL CONDITIONS - BAD CHECKS (BC) and no checks will be accepted on the account. The account must be paid by cash, money order, or cashier's check for a minimum of one year.
At the end of one year, the account is evaluated for credit worthiness and the BC designation removed to allow payment by check if the following conditions are met:
- The customer has paid all billings and penalties in a timely manner
- Service has not been discontinued during the previous year due to nonpayment
- No charges have been assessed for unauthorized usage as stated in this policy