PRESS RELEASE
Date: November 3, 2004
Contact: Steven McKinney, Assistant Chief, Bureau of Investigation - 916-874-5604
District Attorney Jan Scully announced that beginning October 28th, a new federal law called “Check 21” has changed how checking-account customers do business. The practice of returning original checks to customers is being phased out and the banking industry is moving toward electronic processing of all checks.
Processing checks electronically means that checks will clear the bank much faster and people who try to “float” checks with an insufficient balance, or in anticipation of a future deposit, will see their checks bounce. Therefore, it is important to have a sufficient checking account balance before any checks are written.
Those who write NSF (non-sufficient fund) checks, and checks on closed accounts, will find themselves dealing with the District Attorney’s Check Investigation Unit. This unit, formed in 1993 by the District Attorney, tracks down bad check writers, returns money to victims and deters future offenses through a diversion program and possible prosecution.
When the DA’s Check Unit receives the report of a bad check, they give the check writer two choices: pay off the bad check and participate in the DA’s Check Diversion Program, or face prosecution. The diversion program consists of full payment of the bad check, participation in a four-hour diversion class and the payment of a $50 diversion class fee, $35 for a per check administration fee, and up to a $10 fee to reimburse the victim for bank fees charged to them.
100% of the restitution collected by the DA is turned over to the victims and there is no cost to the taxpayers for this program. The Unit is funded completely by fees collected from the bad check writers. Since inception, over $5.7 million has been collected by the program. During the last fiscal year almost 9,000 checks were submitted for diversion or prosecution.
To participate in the program call, the Check Investigation’s Unit at 874-3031. Information and a bad check report form is also available via the District Attorney’s website: http://www.sacda.org/