96-17156. Fees Assessed for Defaulted Payments  

  • [Federal Register Volume 61, Number 131 (Monday, July 8, 1996)]
    [Rules and Regulations]
    [Pages 35597-35598]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 96-17156]
    
    
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    DEPARTMENT OF JUSTICE
    
    Immigration and Naturalization Service
    
    8 CFR Part 103
    
    [INS No. 1692-95]
    RIN 1115-AD92
    
    
    Fees Assessed for Defaulted Payments
    
    AGENCY: Immigration and Naturalization Service, Justice.
    
    ACTION: Final rule.
    
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    SUMMARY: 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.
    
    EFFECTIVE DATE: 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) 616-7715.
    
    SUPPLEMENTARY INFORMATION: 
    
    Introduction
    
        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
    
    [[Page 35598]]
    
    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:
    
        Authority: 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:
    
    
    Sec. 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 dishonored check.
    * * * * *
        Dated: April 30, 1996.
    Doris Meissner,
    Commissioner, Immigration and Naturalization Service.
    [FR Doc. 96-17156 Filed 7-5-96; 8:45 am]
    BILLING CODE 4410-10-M
    
    
    

Document Information

Effective Date:
8/7/1996
Published:
07/08/1996
Department:
Immigration and Naturalization Service
Entry Type:
Rule
Action:
Final rule.
Document Number:
96-17156
Dates:
August 7, 1996.
Pages:
35597-35598 (2 pages)
Docket Numbers:
INS No. 1692-95
RINs:
1115-AD92: Fees Assessed for Defaulted Payments
RIN Links:
https://www.federalregister.gov/regulations/1115-AD92/fees-assessed-for-defaulted-payments
PDF File:
96-17156.pdf
CFR: (1)
8 CFR 103.7