nimrod
12-14-2005, 07:54 AM
hmmmmmm....
Guess I never thought about collecting bad checks as an income stream for the DA's office. Stinkin' Walmart does it to us again. :wink:
Wal-Mart policy hits prosecutors' budgets
By Ron Jackson
The Oklahoman
Wal-Mart's decision to use a national collection agency for bogus checks will cost Oklahoma district attorneys more than $2.8 million annually.
Meanwhile, Suzanne McClain-Atwood, executive coordinator of the Oklahoma District Attorney Council, lobbied for her members during an afternoon conference call with Wal-Mart executives.
Oklahoma district attorneys returned more than $2.6 million in bogus check restitution last year to Arkansas-based Wal-Mart.
"This is really the first time these executives have gotten to hear details," McClain-Atwood said. "We expressed to them what a dramatic impact this would have on many of our districts. Of course, this isn't unique to Oklahoma. Other states are going to be impacted by this decision as well.
"But I felt like they were very receptive."
A face-to-face meeting with officials in different states will be in January, McClain-Atwood said. Until then, Wal-Mart's new national policy will remain in place. The company announced a shift in how it would handle bogus checks in mid-November, Wal-Mart spokesman Marty Heires said.
Company executives decided at that time to contract with TeleCheck Services Inc., a subsidiary of First Data Corp., to collect any bounced checks associated with their Wal-Mart and Sam's Club stores.
"We felt by dealing with one vendor nationally -- one whose core business was check collection -- that this would be a more uniform and fair way to better serve our customers," Heires said.
Heires defined Wal-Mart's bogus check problem as "widespread," but could not provide any numbers.
Cleveland County District Attorney Tim Kuykendall said his district collected nearly $387,000 in fees associated with bogus checks from Wal-Mart.
"This isn't just something that is going to impact our district, but district attorneys throughout Oklahoma," Kuykendall said. "The money generated by these bogus checks from Wal-Mart don't just go to our Bogus Check Division. That money is used departmentwide and helps finance everything, including homicide investigations.
"If Wal-Mart doesn't change its policy, then I think we'll be looking at the state Legislature to help all of us subsidize what we are losing."
Richard Gray, district attorney for Wagoner, Cherokee, Sequoyah and Adair counties, expects to lose between $90,000 and $100,000 a year.
"Wal-Mart makes up about 20 percent of our hot check business," Gray said. "If we can't replace the money, we will have to let two or three people go."
In Jackson County, case worker Kim Carlson said the Wal-Mart in Altus alone accounts for about $60,000 in bogus check fees annually.
In Enid, Wal-Mart bogus checks generated nearly $190,000 in revenue for the local district attorney.
"I think the impact will be felt greatest in the rural parts of the state where Wal-Mart is the one major retailer," said Stephens County District Attorney Gene Christian, whose district collected nearly $50,000 in fees last year related to Wal-Mart bogus checks.
Oklahoma County expects to take the greatest hit.
Wal-Mart's decision will cost Oklahoma County about $675,000 a year, said Debra Forshee, spokesman for District Attorney Wes Lane's office.
"That's about 8 percent of our total budget and 29 percent of our bogus check division budget," Forshee said.
Other companies, Forshee points out, have switched from private collection agencies to district attorney's services.
"We received a phone call today from someone with a big chain who said their company was not happy with the private company they had a contract with and that their corporate office might be interested in hearing what we had to offer," she said. "We will become extremely aggressive in finding other organizations that might want to work with us."
Carter County District Attorney Mitch Sperry, like many of his colleagues statewide, doesn't have that option. Wal-Mart accounts for about 20 percent of his Bogus Check Division revenue.
"It will cost us about $100,000," Sperry said. "It eliminates any surplus for us, that's for sure. And if we don't get enough from the state to make up the difference, we'll be looking at eliminating positions.
"It's as simple as that."
Contributing: Randy Ellis and State Correspondent Sheila Stogsdill.
Related Article: Walmart/Telecheck Deal (http://home.businesswire.com/portal/site/google/index.jsp?ndmViewId=news_view&newsId=20051122005112&newsLang=en)
Guess I never thought about collecting bad checks as an income stream for the DA's office. Stinkin' Walmart does it to us again. :wink:
Wal-Mart policy hits prosecutors' budgets
By Ron Jackson
The Oklahoman
Wal-Mart's decision to use a national collection agency for bogus checks will cost Oklahoma district attorneys more than $2.8 million annually.
Meanwhile, Suzanne McClain-Atwood, executive coordinator of the Oklahoma District Attorney Council, lobbied for her members during an afternoon conference call with Wal-Mart executives.
Oklahoma district attorneys returned more than $2.6 million in bogus check restitution last year to Arkansas-based Wal-Mart.
"This is really the first time these executives have gotten to hear details," McClain-Atwood said. "We expressed to them what a dramatic impact this would have on many of our districts. Of course, this isn't unique to Oklahoma. Other states are going to be impacted by this decision as well.
"But I felt like they were very receptive."
A face-to-face meeting with officials in different states will be in January, McClain-Atwood said. Until then, Wal-Mart's new national policy will remain in place. The company announced a shift in how it would handle bogus checks in mid-November, Wal-Mart spokesman Marty Heires said.
Company executives decided at that time to contract with TeleCheck Services Inc., a subsidiary of First Data Corp., to collect any bounced checks associated with their Wal-Mart and Sam's Club stores.
"We felt by dealing with one vendor nationally -- one whose core business was check collection -- that this would be a more uniform and fair way to better serve our customers," Heires said.
Heires defined Wal-Mart's bogus check problem as "widespread," but could not provide any numbers.
Cleveland County District Attorney Tim Kuykendall said his district collected nearly $387,000 in fees associated with bogus checks from Wal-Mart.
"This isn't just something that is going to impact our district, but district attorneys throughout Oklahoma," Kuykendall said. "The money generated by these bogus checks from Wal-Mart don't just go to our Bogus Check Division. That money is used departmentwide and helps finance everything, including homicide investigations.
"If Wal-Mart doesn't change its policy, then I think we'll be looking at the state Legislature to help all of us subsidize what we are losing."
Richard Gray, district attorney for Wagoner, Cherokee, Sequoyah and Adair counties, expects to lose between $90,000 and $100,000 a year.
"Wal-Mart makes up about 20 percent of our hot check business," Gray said. "If we can't replace the money, we will have to let two or three people go."
In Jackson County, case worker Kim Carlson said the Wal-Mart in Altus alone accounts for about $60,000 in bogus check fees annually.
In Enid, Wal-Mart bogus checks generated nearly $190,000 in revenue for the local district attorney.
"I think the impact will be felt greatest in the rural parts of the state where Wal-Mart is the one major retailer," said Stephens County District Attorney Gene Christian, whose district collected nearly $50,000 in fees last year related to Wal-Mart bogus checks.
Oklahoma County expects to take the greatest hit.
Wal-Mart's decision will cost Oklahoma County about $675,000 a year, said Debra Forshee, spokesman for District Attorney Wes Lane's office.
"That's about 8 percent of our total budget and 29 percent of our bogus check division budget," Forshee said.
Other companies, Forshee points out, have switched from private collection agencies to district attorney's services.
"We received a phone call today from someone with a big chain who said their company was not happy with the private company they had a contract with and that their corporate office might be interested in hearing what we had to offer," she said. "We will become extremely aggressive in finding other organizations that might want to work with us."
Carter County District Attorney Mitch Sperry, like many of his colleagues statewide, doesn't have that option. Wal-Mart accounts for about 20 percent of his Bogus Check Division revenue.
"It will cost us about $100,000," Sperry said. "It eliminates any surplus for us, that's for sure. And if we don't get enough from the state to make up the difference, we'll be looking at eliminating positions.
"It's as simple as that."
Contributing: Randy Ellis and State Correspondent Sheila Stogsdill.
Related Article: Walmart/Telecheck Deal (http://home.businesswire.com/portal/site/google/index.jsp?ndmViewId=news_view&newsId=20051122005112&newsLang=en)