What to do when company won't accept a check

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atticusewig
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What to do when company won't accept a check

Postby atticusewig » Mon Jun 10, 2013 4:38 pm

I was recently asked what to do when a company
won't accept a check. Details are that this is
a title loan company and is Fast Offering Assistance.

Assuming the leadership isn't financially able to cover
the expense personally, what course is best to take ?

Some ideas so far include to give an "advance" for the expense
made out to the Bishop, who cashes it at his Bank and gets a
money order or Cashier's Check which is presented to the
Title Loan Company. Then all receipts are brought back for
the "advance" 's documentation. Would prefer a method that
doesn't give the auditors any extra stress, however.

Also, does payment to the title loan company violate a rule
regarding payment of certain types of debt with Fast Offering funds ?

Thanks,
Atticus

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Mikerowaved
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Re: What to do when company won't accept a check

Postby Mikerowaved » Mon Jun 10, 2013 6:30 pm

When I was finance clerk, I would first call the company that's requesting the payment be cash/money order/cashier's check only and explain that our church organization would be paying the bill for the individual and ask them politely if they would accept our check. More than half the time they were good with that, as long as it reached them by a predetermined date.

Failing that, we would make the check out to a local bank, including whatever fees they needed to cover a cashier's check. A member of the bishopric would take the check to the bank and bring back all the paperwork showing who the bank check was drafted to. That check was then mailed.

As to your last question, if the bishop is OK with it, then you should be too. He has specific training (and inspiration) in that regard.
So we can better help you, please edit your Profile to include your general location.

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gregwanderson
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Re: What to do when company won't accept a check

Postby gregwanderson » Mon Jun 10, 2013 8:20 pm

I don't know if I have access to Handbook 1 anymore, but I seem to remember something that said it is not appropriate to use Fast Offerings to pay for "consumer debt." I take that to mean credit card debt or, say, payments on the TV someone bought at Best Buy. (And, like, the person receiving assistance needs to liquidate their "toys" like their campers and ATVs before the church comes to their rescue.) Title Loan companies prey on desperate consumers in the worst way (...I know someone who got into hot water with that stuff). But is that "consumer debt"? Is there additional guidance on "consumer debt" in the current Handbook?

I hesitate to say that "if the Bishop is okay with it then I am too." I know a Bishop who is new to the calling and recently approved an expense which was tagged by CHQ as inappropriate... and he got a scolding letter for his actions (but he's still Bishop). Often, an experienced clerk may counsel a less-experienced Bishop on something like that.

Gary_Miller
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Re: What to do when company won't accept a check

Postby Gary_Miller » Mon Jun 10, 2013 10:06 pm

atticusewig wrote:Also, does payment to the title loan company violate a rule
regarding payment of certain types of debt with Fast Offering funds ?

This would be considered consumer debt and the instruction specifically say that fast offerings cannot be used to pay for consumer debt.

As a clerk I feel its my responsibility to gently remind the Bishop that paying this kind of expense goes against the handbook of instructions. I usually do this by sending the paper work the Bishop give to be to cut the check back to him with a note and the reference in the handbook. If the Bishop still wants to do it he will send it back with a note to precede, which has not yet happened once he reviews the guidlines.

dannykos
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Re: What to do when company won't accept a check

Postby dannykos » Mon Jun 17, 2013 3:09 am

Don't have access any more - but I'm pretty sure HB1 says 'should not' rather than 'cannot'?

Anyone with HB1 access confirm either way?

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aebrown
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Re: What to do when company won't accept a check

Postby aebrown » Mon Jun 17, 2013 5:02 am

dannykos wrote:Don't have access any more - but I'm pretty sure HB1 says 'should not' rather than 'cannot'?

Anyone with HB1 access confirm either way?

HB 1, Section 5.2.4, item #5 under Fast Offerings: I won't quote it, but the prohibition is strong and unconditional (not just a "should not").

TinMan
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Re: What to do when company won't accept a check

Postby TinMan » Mon Jun 17, 2013 5:19 am

As I read that section, that prohibition is only if the debt is incurred because of business failure of speculation. Do you read it the same as if the consumer debt was incurred because of trying to get enough money to eat or pay the mortgage?

Seen on a tee shirt:

"LETS EAT GRANDMA!"
"LET'S EAT, GRANDMA!"
"Grammar: Saves lives."

That being said, we are instructed to provide where possible, commodities (food, clothing, shelter) or services like utility bills, medical bills, etc. and allow the person to use left over cash to pay other bills, like consumer debt.

Gary_Miller
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Re: What to do when company won't accept a check

Postby Gary_Miller » Mon Jun 17, 2013 5:48 am

TinMan wrote:As I read that section, that prohibition is only if the debt is incurred because of business failure of speculation.

While it does talk about business expenses as well its very specific about consumer dept also.

TinMan wrote:Do you read it the same as if the consumer debt was incurred because of trying to get enough money to eat or pay the mortgage?

Consumer debt is consumer debt no matter what its used to purchase. The handbook does not say don't help people because of consumer dept it says to not pay consumer debt. The key is to help people become self-reliant which can be done by helping them understand that the program is to "sustain life but not lifestyle" this is done by providing commodities instead of giving them money or paying their bills. The key to remember is welfare assistance is designed to be temporary".

TinMan
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Re: What to do when company won't accept a check

Postby TinMan » Mon Jun 17, 2013 6:35 am

Gary_Miller wrote:it says to not pay consumer debt.
No, it does not. At least in the section quoted by aebrown.

But to discuss further would bring down the wrath of the moderators for thread drift.

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aebrown
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Re: What to do when company won't accept a check

Postby aebrown » Mon Jun 17, 2013 6:42 am

TinMan wrote:
Gary_Miller wrote:it says to not pay consumer debt.
No, it does not.

I agree that point #5 can be read in two different ways. One way definitely says that payment of any consumer debt is prohibited, period. The other way says that the consumer debt that cannot be paid is only that debt that is a result of business ventures. Which way is correct? That's a question for inspired priesthood leaders to answer.

TinMan wrote:But to discuss further would bring down the wrath of the moderators for thread drift.

Actually, the original post asked two questions (bad form, but no moderator fixed that early). So this discussion is relevant to one of those two questions.

And moderators try not to have wrath. :)


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