4 Jo Anne Bernal El Paso County Attorney HOT CHECK SEMINAR

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Jo Anne BernalEl Paso County Attorney

www.epcounty.com/CA/www.epcounty.com/CA/

HOT CHECK SEMINAR

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The Federal Reserve Bank says less than 1 % The Federal Reserve Bank says less than 1 % percent of all checks bounce. That still means percent of all checks bounce. That still means about about 600 million600 million yearlyyearly..

A 2006 study by the Federal Reserve estimates that A 2006 study by the Federal Reserve estimates that thru 2015 payments by check will remain the thru 2015 payments by check will remain the second most popular method of paymentsecond most popular method of payment, with 23 , with 23 % share of the market. % share of the market.

A recent Nilson Report estimates that more than A recent Nilson Report estimates that more than 1.2 million worthless checks1.2 million worthless checks enter daily the enter daily the payment system.payment system.

National StatisticsNational Statistics

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If you have received an If you have received an insufficient fundsinsufficient funds or a or a closed accountclosed account check, then you are a victim of a check, then you are a victim of a crime.crime.

We might also be able to help you when check was We might also be able to help you when check was not paid because of “stop payment” by the check not paid because of “stop payment” by the check writer writer

Theft by checkTheft by check is a crime is a crime

You are entitled to You are entitled to restitution restitution

You are entitled to a You are entitled to a merchant feemerchant fee

Our Office is your Option for Our Office is your Option for Criminal ProsecutionCriminal Prosecution

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What Can the County Attorney Do?What Can the County Attorney Do?

Enforce the state laws which prohibit the passing of hot Enforce the state laws which prohibit the passing of hot checks to both merchants and individuals. checks to both merchants and individuals.

The Texas Legislature authorizes El Paso County The Texas Legislature authorizes El Paso County Attorney to process and collect hot checks if the amount Attorney to process and collect hot checks if the amount is less than $1,500.is less than $1,500.

The Texas Penal Code empowers this office to The Texas Penal Code empowers this office to aggressively prosecute hot check writers. aggressively prosecute hot check writers.

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What Can the County Attorney Do?What Can the County Attorney Do?

If the amount of the check is more than $1,500:If the amount of the check is more than $1,500:

File a report with police/sheriffFile a report with police/sheriff

Case will be turned over to the District Attorney’s Case will be turned over to the District Attorney’s OfficeOffice

If DA declines to prosecute the case, you have the If DA declines to prosecute the case, you have the right to ask the County Attorney to attempt to collect right to ask the County Attorney to attempt to collect without criminal prosecution.without criminal prosecution.

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Goals of the Office of the Goals of the Office of the County AttorneyCounty Attorney

To make every attempt to collect restitution from hot To make every attempt to collect restitution from hot check writers check writers

If restitution can not be collected, we will prosecute If restitution can not be collected, we will prosecute those cases which satisfy the elements of the Texas Penal those cases which satisfy the elements of the Texas Penal CodeCode

Our goal is to save Our goal is to save youyou money by actively pursuing hot money by actively pursuing hot check offenderscheck offenders

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Mission of the Hot Check UnitMission of the Hot Check Unit

Prompt collection of the face amount of the check and Prompt collection of the face amount of the check and

fees for the benefit of the payee prior to prosecutionfees for the benefit of the payee prior to prosecution

Maximize collection of money from hot check writersMaximize collection of money from hot check writers

Quicker payment of restitution to merchants Quicker payment of restitution to merchants

Implementation of a system of status reports for Implementation of a system of status reports for

merchants which refer large volume of checks merchants which refer large volume of checks

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Deliver presentations to educate merchants on proper Deliver presentations to educate merchants on proper pre-referral procedures pre-referral procedures

Review and prosecute backlog of hot check accounts Review and prosecute backlog of hot check accounts

Prosecution of misdemeanor hot check writers Prosecution of misdemeanor hot check writers

Mission of the Hot Check UnitMission of the Hot Check Unit

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The following criteria must be met:The following criteria must be met: Proper identification on check Proper identification on check

Driver’s license Driver’s license Date of Birth Personal knowledgeDate of Birth Personal knowledge Identify who signed the checkIdentify who signed the check

Check is within the Statute of Limitations (2 Years from Check is within the Statute of Limitations (2 Years from the date of the check)the date of the check)

Check is for Goods or Services only (not included are Check is for Goods or Services only (not included are repayments of loans etc.)repayments of loans etc.)

Check is dated from the date of issuanceCheck is dated from the date of issuance

To File a Criminal CaseTo File a Criminal Case

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Steps to take when you receive a Steps to take when you receive a Hot CheckHot Check

Send a notice of dishonor to the check writer. Send a notice of dishonor to the check writer.

Demand payment within ten days of receipt of Demand payment within ten days of receipt of the notice.the notice.

Request a merchant collection fee if it is Request a merchant collection fee if it is authorized by Texas Business & Commerce authorized by Texas Business & Commerce Code Section 3.506.Code Section 3.506.

Send a copy of the check(s) to the check writer. Send a copy of the check(s) to the check writer.

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Send the Send the notice of dishonor by first class mail by first class mail with an affidavit of service or by certified mail, with an affidavit of service or by certified mail, return receipt requested. return receipt requested.

Keep a copy of the notice of dishonor with the Keep a copy of the notice of dishonor with the original check and the original affidavit of original check and the original affidavit of service, or the certified receipt of delivery, or the service, or the certified receipt of delivery, or the returned envelope and notice if undelivered. returned envelope and notice if undelivered.

Steps to take when you receive a Steps to take when you receive a Hot CheckHot Check

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1.1. The The original check or substitute check original check or substitute check as defined as defined by federal law by federal law

2.2. Merchant intake form Merchant intake form

3.3. Copy of Copy of “Notice of Dishonor” “Notice of Dishonor”

4.4. The The Affidavit of Service by First Class Mail Affidavit of Service by First Class Mail or or Return ReceiptReturn Receipt (green card or compute tracking (green card or compute tracking notice) or the notice) or the unclaimed SEALEDunclaimed SEALED returned returned envelopeenvelope

Four simple things you must provide to help us help you:

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Office of the County AttorneyOffice of the County Attorney

Attention: Hot Check DepartmentAttention: Hot Check Department

500 E. San Antonio, Room 503500 E. San Antonio, Room 503

El Paso, Texas 79901El Paso, Texas 79901

Office of the County AttorneyOffice of the County Attorney

Attention: Hot Check DepartmentAttention: Hot Check Department

500 E. San Antonio, Room 503500 E. San Antonio, Room 503

El Paso, Texas 79901El Paso, Texas 79901

Please submit this information to:Please submit this information to:

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After Referral to County AttorneyAfter Referral to County Attorney

Once you refer the bad check to us with the

necessary documents, you should NOT accept any

payments from the check writer.

1515www.epcounty.com/CAwww.epcounty.com/CA//

Copy of the Notice of DishonorCopy of the Notice of Dishonor

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Affidavit of Service by First Affidavit of Service by First Class MailClass Mail

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Hot Check Intake Form

www.epcounty.com/CA/www.epcounty.com/CA/

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To limit bad checks make sure…

The Check Is Signed & Dated.

The Signature Matches the Name on the Check.

The drivers license number is on Check and matches number on the ID.

The Address on Check Matches the address on ID.

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To limit bad checks make sure…

The Check is Imprinted With Customer’s Name & Address.

The Check has not been Altered or Defaced.

The Check has not been Postdated or Backdated.

The Check does not have a P.O. Box as the Address.

The Account Number appears on the Check.

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Require Identification!Require Identification!

A Texas Driver's License is the best form of identificationA Texas Driver's License is the best form of identification

A military identification card is acceptableA military identification card is acceptable

Local credit cards and other forms of photo identification Local credit cards and other forms of photo identification may also be helpfulmay also be helpful

A social security card is only acceptable if it is offered with A social security card is only acceptable if it is offered with a picture ID that matches the checka picture ID that matches the check

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Examine the Identification Closely Make sure the person passing the check matches the photo on Make sure the person passing the check matches the photo on

the identification. the identification.

Make sure the check address matches the address on the Make sure the check address matches the address on the identification. identification.

Make sure the expiration date on the identification has not Make sure the expiration date on the identification has not already expired. already expired.

Make sure the check name and signature matches the name Make sure the check name and signature matches the name and signature on the identification. and signature on the identification.

Make sure the date of birth on the check matches the date of Make sure the date of birth on the check matches the date of birth on the identification. birth on the identification.

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Don't Ignore RED FLAGS!!Don't Ignore RED FLAGS!!

If you believe the check is suspect, don't accept If you believe the check is suspect, don't accept the check. the check.

If you believe the identification is questionable, If you believe the identification is questionable, don't accept the check. don't accept the check.

If the check and identification do not match, If the check and identification do not match, don't accept the check don't accept the check

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Always Take these Steps Always Take these Steps before Accepting a Check!before Accepting a Check!

AlwaysAlways copy the identification number and date of birth copy the identification number and date of birth onto the front of the check. onto the front of the check.

AlwaysAlways place your initials or I.D. number on the front of place your initials or I.D. number on the front of the check. the check.

AlwaysAlways record the check writer's home and work phone record the check writer's home and work phone number on the front of the check. number on the front of the check.

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What’s New?What’s New?

Notice of Dishonor by 1st class mail with Notice of Dishonor by 1st class mail with affidavit of serviceaffidavit of service

In 2009 the Texas Legislature amended the In 2009 the Texas Legislature amended the definitions section of the Texas Penal Code definitions section of the Texas Penal Code to include electronic checks, electronic to include electronic checks, electronic debits, and automatic bank drafts.debits, and automatic bank drafts.

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Annual hot check sweeps Annual hot check sweeps

Ten times as many criminal cases filed Ten times as many criminal cases filed

Three investigators making arrests Three investigators making arrests between sweeps between sweeps

Presentations available upon request Presentations available upon request

Online Inquiry and forms Online Inquiry and forms

All information is available on the web: All information is available on the web: www.epcounty.com/CA/www.epcounty.com/CA/

What’s New?What’s New?

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Jo Anne BernalEl Paso County Attorney

500 E. San Antonio Room 503(915) 546-2050

www.epcounty.com/CA/www.epcounty.com/CA/

HOT CHECK SEMINAR