ARKANSAS DEMOCRAT GAZETTE

INSUFFICIENT FUNDS
Wal-Mart Stores Inc. wanted to maximize recovery on the millions of dollars in bad checks written annually at its U. S. stores, but it didn�t want to tick off customers in the process. The world�s largest retailer faced a dilemma each time a customer bounced a check: Spend time and money trying to collect, turn the customer in to the prosecuting attorney or write off the loss.

Last fall, Wal-Mart chose a different option in hopes of simplifying hot-check collections and maximizing debt recovery: It hired private collection firms to do the work.
Historically, prosecuting attorneys have handled hot-check restitution for merchants. But rather than working with hundreds of prosecutors� offices across the country, more and more businesses that operate nationally are streamlining collections through one or two private firms.

By using those firms, merchants also can distance themselves from hounding customers for payment.

Wal-Mart spokesman John Simley said the retail giant hired �vendors� to recoup the loses on bad checks written at its 4, 000 U. S. stores. The vendors simplify a cobbled process, which when handled individually by prosecutors, varies greatly by state and by jurisdiction.

Yes, another example of snatching defeat out of the jaws of victory. How many people can just hang up the phone and ignore collection letters? ALL OF THEM!

How many people can honestly say they want to go to jail for hot checks, then pay restitution? NONE OF THEM.

We will always maintain the more efficient system for collection.

Like other jurisdictions, I suppose, we're experiencing a declining business, if you will, in hot checks. The advent of debit cards and electronic transfer is making a major dent in checks being filed with us. I was sort of disappointed in Wal-Mart's decision to take collection out of the local prosecutor's hands; after all, we did all of the work cradle-to-grave, and provide the merchant with the collection fee on top of restitution. We are not merciless with the casual offender (and thus not really a PR problem for the merchant), only with the professional hot check writer. Can it be that the march of progress will see the disappearance of the written negotiable check in the near future?