RETURNED CHECKS
POLICY

To establish a procedure for the notification and collection of funds on returned checks and/or Automated Clearing House (ACH) payments to Fayetteville Public Utilities (FPU).

1. First returned check or ACH payment within a one (1) year period:
 
  • Customer is sent a letter that states they will have seven (7) days from the date of the letter to remedy returned check or ACH payment.    FPU will accept cash, cashier's check or a money order for restitution of returned check or ACH payment. 
     
  • Customer is assessed a returned check fee in the amount of thirty dollars ($30.00).  Customer is also assessed late payment penalty if applicable.
     
  • In the event the customer does not take appropriate action to correct within the seven (7) day period, customer's service(s) will be disconnected for non-pay.  If the service is disconnected for non-pay, applicable service fees will apply.
     
  • If customer does not remedy returned check or ACH payment and is disconnected for non-pay, a certified letter is mailed to customer giving them ten (10) days from the date of the letter to make final restitution.
     
    • If customer does not correct the situation, the returned check is turned over to the courthouse for prosecution.
       
    • If the return is on an ACH payment, the information may be turned over to the courthouse for prosecution under theft of service.  The information is provided to collection agency.
       
  • Customer will be removed from automatic bank draft if ACH payment is returned.
     
2. Second returned check within a one (1) year period:
 
  • Upon receipt of the second returned check written within a one (1) year period, the customer is automatically disconnected the same day or the next business day without written notice if the account is past due.  Applicable service fees will apply.
     
  • Customer is assessed a returned check fee in the amount of thirty dollars ($30.00).  Customer is also assessed late payment penalty if applicable.
     
  • If customer is disconnected for non-pay, a certified letter is mailed to customer giving them ten (10) days from the date of the letter to make final restitution.  If customer does not correct the situation, the returned check is turned over to the courthouse for prosecution.
     
  • After the receipt of either two (2) returned checks or one (1) returned check and one (1) ACH payment within a one (1) year period, FPU will not accept a check or ACH payment on the customer's account for a period of one year from the date of the last return.
     
3. Other:
 
  • Customer will be disconnected without written notice if a check is returned that was made payable to FPU for payment of customer's connection fee or deposit.
     
  • Customer will be disconnected without written notice if a check is returned that was made payable to FPU for restoration of utility services as a result of non-payment.
     
  • No extensions are granted on a returned check or a returned ACH payment.
     
4. In extenuating circumstances, the CEO/General Manager will make a decision whether or not to accept payment from an organization or individual offering assistance to a customer with a returned check after checking the credit history of that organization or individual.