10 Del. Admin. Code § 203-27.0

Current through Register Vol. 28, No. 5, November 1, 2024

Section 203-27.0 - Returned Checks, Collections and Write-off of Past Due Accounts

27.1 All dishonored checks returned by a bank ("returned checks") after deposit shall be returned directly to, and controlled by, accounting department employees with no incompatible functions. An agent may re-deposit a returned check if there are reasonable expectations the check will be honored.

27.2 An agent shall suspend the credit lines of patrons whose checks have been returned and remain unpaid.

27.3 Procedures shall be established for collecting and recording returned checks, and copies of statements or other documents supporting collections' efforts shall be maintained as approved by the Director.

27.4 Statements shall be sent to patrons by employees with no incompatible functions immediately upon receipt of a returned check, or immediately upon receipt of a returned check for a second time, if the check was immediately re-deposited.

27.5 No person other than one licensed as a key employee or as a gaming employee who has no incompatible functions, as defined by the MICS and approved by the Director, may engage in efforts to collect returned checks, except that an attorney-at-law representing an agent may bring action for such collection.

27.6 After reasonable collection efforts, returned checks may be considered uncollectible for accounting purposes and charged to the agent's allowance for uncollectible patrons' checks. Any patron's indebtedness may only be considered uncollectible for accounting purposes and charged to the allowance for uncollectible patrons' checks account after the following information has been included in the patron's credit file:

27.6.1 Documentation of the collection department efforts to collect the patron's outstanding checks and the reason why such collection efforts were unsuccessful; or

27.6.2 A letter from an attorney representing the agent documenting the efforts to collect the patron's outstanding checks and the reasons why such collection efforts were unsuccessful or were not pursued further.

27.7 Listings of uncollectible checks shall be approved in writing by two persons, and a continuous trial balance of all uncollectible checks shall be maintained, as required by the agent's approved internal control submission.

10 Del. Admin. Code § 203-27.0