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PROHIBITION ON

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									                                  PROHIBITION ON
    RECORDING SOCIAL SECURITY NUMBER OR CREDIT CARD NUMBER WHEN ACCEPTING CHECKS

EMAIL
From:           Jud Hurd
To:             All people on the ABS Departmental Administrator Email List
Sent:           Friday, January 02, 2004 at 6:49 AM
Subject:        Prohibition on Recording Social Security Number or Credit
                Card Number When Accepting Checks



This email is an advisory sent to all people on the Accounting & Budget Services Departmental
Administrator email list.

Joe Tinucci from the Treasurer's Office has provided us with the following information.

If your department accepts check payments, please incorporate this requirement into your
departmental cash control policies and procedures. Please contact your Area Accountant if you
have any questions.

Thanks.


To All:

At the recent BRS Key Users meeting, it was requested that I research
and report on House Bill 03-1272 that amends Colorado law regarding
"Consumer Commercial Transactions".

The Act is subtitled "Concerning A Prohibition Against Recording
Certain Information When Accepting A Negotiable Instrument As Payment",
and that is a pretty good description of what the bill says. In fact,
for a piece of legislation, it is remarkably short and very clear. The
bill itself can be found at the following
URL: <http://www.state.co.us/gov_dir/leg_dir/olls/sl2003a/sl_180.htm>.
The bill went into effect on August 6, 2003.

The bill specifically says:

"When payment is made by check or other negotiable instrument, a person
shall not record or require the maker of the check to record a credit
card or social security number given as identification or proof of
creditworthiness."

That is, cashiers, tellers, merchants, and anyone else accepting
payment by check CANNOT write a person's Social Security Number or a
credit card number down, either on the check itself or in a separate
payment log.

There are only three exceptions to this rule:
      1)    A credit card number may be written on a check only when
paying the credit card account represented by that number.
      2)    "The recording of a person's Social Security Number on a
check or other negotiable instrument issued to pay a student loan."
      3)    “The recording of a person's Social Security Number on a
bonafide loan application.”

“Subsection (a) of this section shall not prohibit a person from
requesting a purchaser of goods or services to display a credit card as
indication of creditworthiness or identification if the only
information about the credit card that is recorded is the type of
credit card and the issuer of the credit card.”

As noted at the Key Users meeting, compliance with this law WILL
require an immediate change of practice. Any person accepting check
payments cannot write a Social Security Number or a credit card number
down, either on the check itself or in a separate payment log. This
holds true even if the purpose of this practice is to facilitate either
the application or reversal of the payment.

Each campus should also be aware that any department that accepts
payment by check and then brings them to the Bursar's office for
deposit needs to be educated about this new prohibition.



Jud Hurd, Controller
University of Colorado at Boulder
Accounting & Budget Services
579 UCB
Boulder, CO 80309-0579
Phone: (303) 492-1449
Fax: (303) 492-5553

								
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