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Fees Assessed for Defaulted Payments [61 FR 35597] [FR 34-96]
FEDERAL REGISTER CITE:
61 FR 35597
July 8, 1996
BILLING CODE 4410-10-M
DEPARTMENT OF JUSTICE
Immigration and Naturalization Service
8 CFR Part 103
[INS No. 1692-95]
Fees Assessed for Defaulted Payments
Immigration and Naturalization Service, Justice.
This rule amends the Immigration and Naturalization Service (Service) regulations to increase the fee imposed from $5.00 to $30.00 when a check submitted to the Service in payment of a fee is not honored by the bank upon which it is drawn. The purpose of this change is to enable the Service to recoup the administrative costs incurred in processing all returned checks and other defaulted payments. This action will result in the Service no longer losing money as a result of bad check activity.
August 7, 1996.
FOR FURTHER INFORMATION CONTACT:
Allen H. Sinsheimer, Systems Accountant, Debt Collection and Cash Management Branch, Office of Financial Management, Immigration and Naturalization Service, 425 I Street, NW., Room 6034, Washington, DC 20536, telephone (202)
Changes in the current regulation are needed to make the bad check charge consistent with the actual costs incurred by the Service in processing returned checks and other defaulted payments. The current bad check charge is $5.00.
The Service has studied the costs incurred by several Administrative Centers attributable to the return of a bad check from a financial institution. The Administrative Center, Dallas and the Administrative Center, Twin Cities were asked to identify each action that must be undertaken and quantify the time and costs involved in processing a bad check. Meaningful and reliable accumulations of the time and expense involved in the average costs of processing each bad check have been gathered by these centers
since they process a substantial number of financial transactions each year. For example, three employees at the Administrative Center, Dallas each spend 38 hours each month processing bad checks. Over 900 bad checks are processed each year at the Administrative Center, Dallas. Data from the processing of over 1,800 bad checks were provided by the Administrative Centers.
As a result of our study, we have determined that the average cost to the Service to process each bad check received is $30.11. We have rounded off the cost to $30.00.
The Service notes that the United States Customs Service has recently completed a review of the costs incurred in processing bad checks and has also concluded that a $30.00 fee for bad checks is appropriate compensation for the costs it incurs in processing bad checks.
On September 28, 1995, at 60 FR 50145, the Immigration and Naturalization Service published a proposed rule with request for comments in the Federal Register, to allow the Service to recoup the administrative costs incurred in processing all returned checks and other defaulted payments. Written comments were requested by November 27, 1995. The Service did not receive any comments to the proposed rule and is amending Section 103.7(a) to make the bad check charge consistent with the actual costs incurred by
the Service in processing returned checks and other defaulted payments. Accordingly, the bad check charge is being increased from "$5.00" to "$30.00."
Regulatory Flexibility Act and Executive Order 12866
Pursuant to the provisions of the Regulatory Flexibility Act (5 U.S.C. 601, et seq.), and for the reasons stated in the preamble, it is certified that the rule would not have a significant impact on a substantial number of small entities. Accordingly, this rule is not subject to the regulatory analysis or
other requirements of 5 U.S.C. 603 and 604. This rule will not result in a "significant regulatory action" under Executive Order 12866.
Executive Order 12612
The regulations adopted herein will not have substantial direct effects on the States, on the relationship between the National Government and the States, or on the distribution of power and responsibilities among the various levels of government. Therefore, in accordance with Executive Order 12612, it is determined that this rule does not have sufficient federalism implication to warrant the preparation of a Federal Assessment.
List of Subjects in 8 CFR Part 103
Administrative practice and procedure, Authority delegations (Government agencies), Freedom of information, Privacy, Reporting and recordkeeping requirements, Surety bonds.
Accordingly, part 103 of chapter I of title 8 of the Code of Federal Regulations is amended as follows:
PART 103--POWERS AND DUTIES OF SERVICE OFFICERS; AVAILABILITY OF SERVICE RECORDS
1. The authority citation for part 103 continues to read as follows:
5 U.S.C. 552, 552(a); 8 U.S.C. 1101, 1103, 1201, 1252 note, 1252(b), 1304, 1356; 31 U.S.C. 9701; E.0. 12356, 47 FR 14874, 15557;3 CFR, 1982 Comp., p. 166; 8 CFR part 2.
2. Section 103.7 is amended by:
a. Redesignating the text of paragraph (a) following the heading as paragraph (a)(1);
b. Removing in the sixth sentence of newly designated paragraph (a)(1) the term "$5" and adding in its place the term "$30.00"; and
c. Removing the seventh sentence of newly designated paragraph (a)(1); and
d. Adding a new paragraph (a)(2), to read as follows:
§ 103.7 Fees.
(a) * * * (1) * * *
(2) A charge of $30.00 will be imposed if a check in payment of a fee, fine, penalty, and/or any other matter is not honored by the bank or financial institution on which it is drawn. A receipt issued by a Service officer for any such remittance shall not be binding upon the Service if the remittance is found uncollectible. Furthermore, credit for meeting legal and statutory deadlines will not be deemed to have been met if payment is not made within 10 business days after notification by the Service of the
* * * * *
April 30, 1996
Commissioner,Immigration and Naturalization Service.