Section 140IAC8-3-29. Dishonored or rejected payments procedures and service charges

   The bureau shall use the following procedures when a financial institution reports that it dishonors or rejects a person's check, credit card payment, E-check (electronic check), or other form of payment:

(1) The bureau shall create a separate collection file for each dishonored or rejected payment received from a financial institution.

(2) The bureau shall assess and collect the fees authorized in IC 35-43-5-5 and IC 6-6-5-12.

(3) The bureau shall compile and mail notices for each collection file that requests payment of the amount of the dishonored or rejected payment and any additional amounts assessed under subdivision (2). The notice shall also state that a driver's license or permit may be suspended and registration or title invalidated if full payment is not received within ten (10) business days from the collection notice's date.

(4) The bureau shall provide a receipt for any payment or payments received.

(5) The bureau may immediately suspend a driver's license or permit and invalidate a registration or title if the bureau does not receive full payment of the dishonored or rejected payment and the fees in subdivision (2) by the due date specified in subdivision (3).

(6) The driver's license, permit, registration, or title shall be reinstated upon full payment of the dishonored or rejected payment, the fees in subdivision (2), and an additional fee of ten dollars ($10) for each suspended driver's license or permit and invalidated registration or title. The bureau shall provide a reinstatement receipt after removing the suspension or invalidation.

(7) The bureau may waive the fees assessed in subdivisions (2) and (6) if the payment was dishonored or rejected due to a financial institution or bureau error, and the bureau receives written documentation of the error and the amount of the dishonored or stopped payment. The bureau shall place any documentation received in the applicable collection file. The bureau may remove a suspension or invalidation imposed under this section if the bureau receives a court order, or the bureau determines the dishonored or rejected payment was due to a financial institution or bureau error.

(Bureau of Motor Vehicles; 140 IAC 8-3-29; filed Oct 7, 2008, 10:23 a.m.: 20081105-IR-140080215FRA; readopted filed Nov 26, 2013, 11:22 a.m.: 20131225-IR-140130487RFA)