INS on Authority to Control Uncollectable Check Payments

Memorandum

Subject: Authority to Control Uncollectable Payments by Checks

Date: June 22, 1995

To: District Directors
Section Chiefs

From: Office of Management

The purpose of this memorandum is to provides discretionary authority to District Directors for restricting the acceptance of checks for fees. Restriction may be used when there is a high rate of uncollectable checks.

This delegation of authority to restrict payments accepted does not apply to payments accepted by INS offices and forwarded to Service Centers for processing, such as I-90 receipts. Service Center must accept checks and control uncollectables through the CLAIMS system.

This authority may be exercised if one of the following situations occur:

• uncollectable checks exceed one half of 1 percent (.005) of monthly collections at a port/district.
• an uncollectable check pattern occurs at a particular INS office, i.e., an substantial number of stop payments are received, checks are being returned marked "no such account", or a particular debtor has had checks returned.

District Directors exercising this authority must notify, in writing, 30 days prior to implementation, the Debt Collection and Cash Management Branch and their Administrative Center. The memorandum should outline the action proposed and the reason(s).

If there are questions, please contact Robert Bevilacqua of my staff, on 202/514-3400.