Okla. Admin. Code § 260:135-3-34

Current through Vol. 42, No. 4, November 1, 2024

Section 260:135-3-34 - Procedures for reporting and collecting dishonored checks on Service Oklahoma transactions

The following procedures should be followed in the event a check deposited by a licensed operator is returned unpaid.

(1)Notice of dishonored check. The bank should notify the agent that they are holding an unpaid item. The agent must make two (2) attempts to redeem the check through the depository bank. Should the bank refuse to accept the dishonored check a second (2^nd) time, it shall be treated as if two (2) attempts were made. The agent shall retrieve the check immediately from the bank utilizing one of the following methods:

(A) The agent may utilize current funds due Service Oklahoma to reimburse the bank for the dishonored check and immediately forward the check and supporting documentation to Service Oklahoma for review and credit. If not received by Service Oklahoma within five (5) business days of retrieval, the Service Oklahoma funds utilized will be considered delinquent and the delinquent depositing penalties outlined in 47 O.S. § 1142 shall apply.

(B) The agent may utilize personal funds to reimburse the bank for the dishonored check and attempt collection from the taxpayer for a period of thirty (30) days, as set forth below.

(2)Procedure for collection of dishonored check; applicable penalties; taxpayer liability. An initial returned check fee of $25.00 is to be charged to the maker of a dishonored check, after an attempt has been made to deposit the check twice. Should payment for the check be subsequently collected by any licensed operator, that licensed operator may retain the $25.00 returned check fee. Any accrued penalty to date of collection is to be assessed. The taxpayer is notified to remit payment immediately to the licensed operator. If the licensed operator's collection attempts on a check retrieved from the depository bank with personal funds are unsuccessful, the licensed operator shall send to Service Oklahoma the dishonored check, licensed operator's file copies of documents on which the check was issued, and a copy of the notification to the taxpayer within thirty (30) days of retrieval from the depository bank. Upon receipt of the required documentation, Service Oklahoma will issue credit to the licensed operator's account in the full amount of the check. Copies of all transaction and correspondence documentation is to be retained in the licensed operator's office. In the event the taxpayer returns all items issued by the licensed operator, the insufficient check is not to be returned to the taxpayer, or the transaction cancelled by the licensed operator. Return of these items does not relieve the taxpayer of responsibility to remit the proper fees to the State of Oklahoma.

(3)Subsequent tender of payment. After the documents and dishonored check have been forwarded to the Motor Vehicle Division, the licensed operator shall not accept payment from the registrant without contacting the Division for instructions.

(4)License plate or decal may be held. The licensed operator may hold a license plate or decal until the taxpayer's check has cleared the bank.

(5)Dishonored checks to be forwarded to Service Oklahoma; time limits. Dishonored checks for which the agent utilizes Service Oklahoma funds to retrieve from the depository bank are to be forwarded immediately to Service Oklahoma, along with the documentation required by Service Oklahoma to record and confirm date of retrieval from the depository bank. Information relating to any dishonored check retrieved with Service Oklahoma funds is to be timely entered to the deposit entry program, in the manner outlined by Service Oklahoma. All dishonored checks retained by the licensed operator for attempted collection and for which payment is not received are to be sent to Service Oklahoma no later than thirty (30) days after the date picked up from the bank. Further delays in processing may prevent collection.

(6)Purchaser not responsible. The purchaser of a vehicle shall not be required, as a condition for registration of the vehicle, to pay any tax, fee or penalty due resulting from a dishonored check submitted by the previous owner.

Okla. Admin. Code § 260:135-3-34

Transferred from 710:60-9-94 by HB 3419 (2022), eff. 5/19/2022

Amended by Oklahoma Register, Volume 40, Issue 24, September 1, 2023, eff. 9/11/2023