| (a) Purpose. Business and Commerce Code, §3.506,
authorizes the holder of a dishonored check, seeking collection of
the face value of the check, to charge the drawer or endorser of the
check a reasonable processing fee, not to exceed $30. This section
prescribes policies and procedures for the processing of dishonored
checks made payable to the department and the collection of fees because
of the dishonor of a check made payable to the department.
(b) Definitions. The following words and terms, when
used in this section, shall have the following meanings, unless the
context clearly indicates otherwise.
(1) Department--The Texas Department of Motor Vehicles.
(2) Dishonored check--A check, draft, order, electronic
payment, or other payment device that is drawn or made upon a bank
or other financial institution, and that is not honored upon presentment
because the account upon which the instrument has been drawn or made
does not exist or is closed, or does not have sufficient funds or
credit for payment of the instrument in full.
(c) Processing of dishonored checks. Upon receipt of
notice from a bank or other financial institution of refusal to honor
a check made payable to the department, the department will process
the returned check using the following procedures.
(1) The department will send a written notice by certified
mail, return receipt requested, to the drawer or endorser at the drawer
or endorser's address as shown on:
(A) the dishonored check;
(B) the records of the bank or other financial institution;
or
(C) the records of the department.
(2) The written notice will notify the drawer or endorser
of the dishonored check and will request payment of the face amount
of the check, any payment processor charges, and a $30 processing
fee no later than 10 days after the date of receipt of the notice.
The written notice will also contain the statement required by Penal
Code, §32.41(c)(3).
(3) The face amount of the check, any payment processor
charges, and the processing fee must be paid to the department:
(A) with a cashier's check or money order, made payable
to the Texas Department of Motor Vehicles; or
(B) with a valid credit card, approved by the department,
and issued by a financial institution chartered by a state or the
United States, or a nationally recognized credit organization.
(4) Payments made by credit card must include the fee
required by §209.23 of this chapter (relating to Methods of Payment).
(5) If payment is not received within 10 days after
the date of receipt of the notice, the obligation will be considered
delinquent and will be processed in accordance with §209.1 of
this title (relating to Collection of Debts).
(d) Supplemental collection procedures. In addition
to the procedures described in §209.1, the department may notify
appropriate credit bureaus or agencies if the drawer or endorser fails
to pay the face amount of a dishonored check, any payment processor
charges, and the processing fee, or may refer the matter for criminal
prosecution.
(e) Any payment to the department from the drawer or
endorser of a dishonored check will be applied first to the processing
fee.
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| Source Note: The provisions of this §209.2 adopted to be effective February 4, 2010, 35 TexReg 660; amended to be effective March 12, 2014, 39 TexReg 1727; amended to be effective December 7, 2014, 39 TexReg 9367; amended to be effective June 28, 2017, 42 TexReg 3273 |
