Notice of Dishonored Check (Bad Check Notice)

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A notice of dishonored check is a formal written demand the holder of a returned check sends to the person who wrote it, informing that person the check was not honored and demanding payment within a set number of days. The document triggers a statutory waiting period. Once that period runs without full payment, the holder gains the right to sue not only for the face amount of the check but also for civil penalties, often called treble damages or statutory damages, that can far exceed what the check was worth.

The notice is the gatekeeper to the civil bad-check remedy. A payee who skips it and goes straight to court generally cannot collect the enhanced penalties, and in some states loses the right to attorney fees as well. The requirement is baked into the statute in almost every jurisdiction: the holder must mail the demand, wait the prescribed number of days, and only then file suit if payment has not arrived.

Every state has a bad-check criminal statute, but the civil remedy is a separate track. The civil notice is not a report to the district attorney. It is a direct, private demand between the payee and the check writer. Many payees use the civil route because it is faster, does not require a criminal conviction, and produces a money judgment the payee can enforce directly. Some states explicitly provide that the civil action and the criminal prosecution can proceed on parallel tracks.

The document typically contains the date of the check, the amount, the name of the drawee bank, the reason the check was returned (insufficient funds, closed account, or stop payment), the statutory citation that authorizes civil penalties, the amount the holder demands, the payment deadline, and instructions for how to pay. Several state statutes, including Georgia, prescribe the exact language the notice must use or provide a form the holder can adapt.

Pairs naturally with a demand letter when the underlying transaction also gives rise to a contract or other claim. Where the bounced check was partial payment on a larger debt, a combined demand letter covering the full balance and the statutory bad-check notice for the check itself can be sent together, reducing the total number of mailings and preserving all of the holder's remedies at once.

Why This Document Matters

Returned checks remain one of the more reliable sources of small civil claims, and the statutory frameworks have become more payee-friendly over the past decade. Several states have raised damage caps and extended the categories of checks covered. Knowing which version of the statute is in effect matters because courts have dismissed enhanced-damage claims based on superseded notice language.

Electronic payments have not eliminated the problem. Many landlords, contractors, and small retailers still accept paper checks, and ACH returns create parallel issues in states that have extended their bad-check statutes to electronic fund transfers. California, Florida, Illinois, and several others have amended their civil bad-check statutes to cover dishonored electronic debits, so the civil notice procedure now applies to ACH transactions in those jurisdictions the same way it applies to paper checks.

The costs of a bounced check fall disproportionately on small businesses and individuals. A landlord whose tenant's security deposit check is returned, a contractor whose final payment bounces, or a vendor who accepted a bad check for goods already delivered needs a concrete legal tool. The civil bad-check notice is that tool: a single certified-mail letter that, if the drawer ignores it, converts a face-value claim into one worth two or three times as much, often with attorney fees attached.

Payment processors and collection agencies have learned to front-load the notice procedure. A business that receives returned checks repeatedly is better positioned in court if it has a documented, consistent practice of sending statutory notices on a fixed timeline from dishonor. Courts have reduced or denied enhanced damages when the holder's notice practice was sloppy, the timing was off, or the form of notice did not match the statutory requirement.

Criminal referral becomes more credible after the civil notice has been sent and ignored. Many district attorney bad-check programs will not accept a check for prosecution unless the holder has already made a written demand and the check writer has failed to respond. The civil notice letter serves double duty: it opens the enhanced civil remedy and it documents the element of intent that the criminal statute often requires.

The Legal Framework

What a proper notice of dishonored check contains

Start with the date of the notice, not the date the check was written. The notice period runs from the date of mailing or the date of receipt, and courts measure the window from that date. A notice that is undated or inconsistently dated creates ambiguity about when the clock started.

Identify the check with specificity. Include the check number, the date written on the check, the amount, the name of the bank on which the check was drawn, and if available, the account number (partially redacted if the account has not been closed). Vague references to 'your check' without identifying information leave open a dispute about which instrument is the subject of the demand.

State the reason for dishonor as it appears on the bank's return notice: insufficient funds, closed account, or payment stopped. The reason matters for two reasons. First, some states calculate damages differently depending on whether the check was returned for NSF versus a closed account. Second, the reason for dishonor can affect whether the civil statute applies at all. A check returned for a missing signature or a technical defect in the instrument is not necessarily a civil bad-check situation.

State the total amount demanded. That figure is the face amount of the check, plus the service charge the statute authorizes (if you are claiming it), plus any bank fee the holder incurred and the statute allows the holder to recover. Do the arithmetic and show it. A demand that just says 'pay the check plus fees' without specifying the total has led courts in several states to deny the service charge because it was not adequately demanded.

Cite the controlling statute by section number and reproduce the key language the statute requires to appear in the notice. Georgia's O.C.G.A. 13-6-15 prescribes specific language about the ten-day cure period and the double-damage consequence of failure to pay. California's Civil Code Section 1719 requires that the demand letter state that treble damages may be sought. New Mexico's statute requires the notice to say specifically that triple damages may be incurred. Missing the statutory-language requirement in a notice is the most common procedural defect that defeats the civil penalty claim.

State the payment deadline in plain terms: the number of days from the date of mailing and the resulting calendar date. Do not leave it to the reader to calculate. For a California notice sent on a Monday, the demand reads: 'You have 30 days from the date of mailing of this letter, until [specific date], to pay the full amount demanded.' A deadline that is clear on its face removes any argument that the drawer misunderstood when the window closed.

Provide payment instructions. Name the payee to whom the check should be made out, the address for delivery, and whether a cashier's check or money order is required. Most payees reasonably require that replacement funds be certified, given that the original check was returned. Say so explicitly.

Sign the letter and provide a return contact. The notice should come from the payee or the payee's authorized agent, and it should identify who the drawer can contact with questions about payment. An unsigned demand, or one that comes from a third party without disclosing the authority to collect, can create technical objections about who holds the claim.

When You Need This Notice

You received a check that was returned by the bank for insufficient funds and you want to preserve your right to collect civil penalties above the face amount. Sending the notice starts the clock; failing to send it forecloses the enhanced remedy.

You received a check on a closed account. Most civil bad-check statutes cover closed-account checks, and some states actually provide higher damages for a closed-account dishonor than for NSF, because closing an account before writing the check is stronger evidence of intent.

You received a stop-payment check without apparent justification. Before sending a statutory notice in a stop-payment situation, confirm that the state's civil bad-check statute covers stop payments, because Oregon, Montana, and others condition the civil remedy on the stop payment being made without good cause.

You are a landlord who received a bounced security deposit or rent check and want to pursue the maximum civil remedy allowed by state law before deciding whether to involve the district attorney's program.

You are a contractor or vendor whose customer paid for goods or services with a check that was returned and the customer has not responded to informal outreach. The statutory notice creates a formal record that the claim is in dispute and that you have exhausted the informal cure opportunity.

You are a collection agency or assignee that acquired a dishonored check from the original payee. Most state civil bad-check statutes expressly cover holders and assignees, not just original payees. Confirm the assignment is properly documented before sending the notice in the assignee's name.

You want to preserve the ability to refer the check for criminal prosecution. Most district attorney bad-check programs require proof that a civil demand was sent and ignored before they will accept a check for prosecution. Sending the statutory notice and retaining the certified-mail receipt satisfies that prerequisite.

You are preparing to file in small claims court. Small claims courts in most states hear civil bad-check cases, and judges in those courts are familiar with the statutory notice requirement. A clean certified-mail receipt and a copy of the notice will often resolve the case on the papers without a contested hearing.

How to Fill Out Notice of Dishonored Check (Bad Check Notice)

1. 1. Gather the bank's return document

   Before you draft the notice, obtain the bank's notice of dishonor. This document states the reason the check was returned: NSF, closed account, or payment stopped. You need the exact reason, because some states calculate damages differently based on it, and some state statutes only cover certain types of dishonor. The bank's notation also provides the date of dishonor, which starts the limitations clock and should be recited in the notice.

2. 2. Identify the controlling statute

   Look up the civil bad-check statute for the state where the action will be filed, which is typically the state where the payee's business is located or where the check was tendered. Note the damages formula, the service charge limit, the required notice period, and any mandatory language the statute says must appear in the demand. Compare the statute's current text to what you find in summaries, because legislatures do amend these provisions. Your state's legislature website will have the current enrolled version.

3. 3. Calculate the demand amount

   Add the face amount of the check, the service charge the statute allows (if you are claiming it), and any bank fee you incurred that the statute permits the holder to recover. Write out the calculation in the notice. For example: 'Check amount: $350.00. Service charge authorized by [statute]: $30.00. Bank returned-check fee: $12.00. Total demanded: $392.00.' Showing the math removes ambiguity and prevents a dispute about what 'the full amount' means when payment arrives.

4. 4. Draft the notice with the required statutory language

   Use plain language, but do not omit the statutory citations and any mandatory phrases the controlling statute requires. California requires language about the possibility of treble damages. New Mexico requires the notice to state that triple damages may be incurred if payment is not received within ten days. Georgia prescribes a notice form in the statute itself. If the statute prescribes a form or specific language, use it verbatim. Paraphrasing a required statutory phrase can invalidate the enhanced-damage claim.

5. 5. Set the payment deadline as a calendar date

   Convert the notice period to a specific date. If the statute requires 30 days and you mail the notice on June 10, write 'on or before July 10' in the letter. Do not just say '30 days from mailing'; specify the date. If the statute measures from the date the drawer receives the notice rather than the date of mailing, allow for mail delivery time and state the assumed receipt date. When the deadline is ambiguous, courts sometimes find the notice deficient.

6. 6. Send by certified mail, return receipt requested, with simultaneous first-class copy

   Address the certified mailing to the address printed or written on the check, or to the drawer's last known address if that address is different and you can verify it. In states that require a simultaneous first-class mailing (California, Illinois, New York, North Carolina, and others), send the duplicate the same day. Retain: the original check (or a clear copy), the certified mail receipt, the tracking confirmation showing when and to which address it was sent, and if returned unclaimed, the envelope with the postal notation. These are the exhibits at trial.

7. 7. Wait the full notice period before filing

   Do not file suit before the notice period runs. Filing even a day early can cause the court to dismiss the enhanced-damage claim, and some statutes provide that an action filed prematurely forfeits the civil penalty entirely. If the drawer sends partial payment during the notice period, note the receipt, apply it to the balance, and decide whether the reduced balance changes your calculation of enhanced damages under the statute (some states compute treble damages only on the unpaid portion).

8. 8. File in the appropriate court and include your documentation

   Civil bad-check cases for amounts within the small claims ceiling can usually be filed in small claims court without an attorney. For larger amounts, file in the appropriate civil court. In your complaint, attach a copy of the original check, the bank's dishonor notice, the demand letter you sent, and the certified mail proof. These exhibits establish each element of the statutory claim: dishonor, written demand, service on the drawer, expiration of the notice period, and failure to pay. Courts grant default judgment in straightforward cases where this documentation is complete.

Key Terms Defined

Dishonored check

A check that the drawee bank refuses to pay, whether because the drawer has insufficient funds on deposit, the account is closed, or the drawer stopped payment. The reason for dishonor matters under some state civil statutes, which treat closed-account checks differently from NSF checks or provide a separate framework for stop-payment checks.

Drawer

The person or entity that signed and issued the check. In the civil bad-check context, the drawer is the respondent to the demand letter and the defendant in a civil action to collect the penalty.

Holder

The person or entity in possession of the check at the time of dishonor, which is typically the payee but can also be an assignee or collection agency that has acquired the check. Most civil bad-check statutes use 'holder' broadly to include any person entitled to enforce the instrument.

Notice period

The number of days the drawer has after receiving the written demand to pay the check plus authorized fees before the holder may sue for civil penalties. Notice periods range from 10 days in Georgia and New Mexico to 35 days in New Jersey. The most common period is 30 days.

Service charge

A fee the holder may charge the drawer at the time of demand to compensate for the cost of the returned check, separate from the face amount and from any civil penalty. Authorized service charges range from $10 to $50 depending on the state, with a few states setting the charge as a percentage of the face amount.

Treble damages

A civil penalty equal to three times the amount of the dishonored check or the unpaid balance at the time the notice period expires. Most states allow treble damages, but many cap the total enhancement at a fixed dollar amount above the check face (commonly $500). The treble calculation is conditioned on the holder having sent the statutory notice and the drawer having failed to pay within the notice period.

NSF

Not sufficient funds. A check returned NSF means the drawer's bank account existed but had less money in it than the check required. This is the most common reason for dishonor. Most states treat NSF checks and closed-account checks the same under the civil bad-check statute, though a few states provide higher penalties for the closed-account scenario.

Stop-payment check

A check on which the drawer instructed the bank not to honor payment. A stop payment made with the intent to defraud or without legitimate cause falls within the civil bad-check statutes in most states, but several states expressly exclude stop payments made for good cause, such as a dispute about the underlying goods or services.

Related Documents

Legal Authorities & Sources

This page is grounded in primary law. The statutes and official resources below are the authorities behind the guidance above. Verify the current text of any statute before relying on it.

• California Civil Code Section 1719 (bad check civil remedy, treble damages, 30-day notice)
• Florida Statutes Section 68.065 (worthless check civil action, treble damages, 30-day notice)
• Georgia Code Section 13-6-15 (damages for writing bad checks, 10-day notice, double damages)
• Illinois Compiled Statutes 720 ILCS 5/17-1(E) (civil liability, treble damages, 30-day notice)
• New York General Obligations Law Section 11-104 (civil action for bad checks, double damages, 30-day notice)
• Michigan Compiled Laws Section 600.2952 (dishonored check civil remedy, double damages)
• Oregon Revised Statutes Section 30.701 (actions against maker of dishonored check, treble damages, 30-day notice)
• Alaska Statutes Section 09.68.115 (bad check civil penalties, 15-day notice)
• Maine Revised Statutes Title 14, Section 6071 (civil penalties for bad checks)
• North Carolina General Statutes Section 6-21.3 (remedies for returned checks, 30-day notice, treble damages)
• Colorado Revised Statutes Section 13-21-109 (treble damages for dishonored checks, 15-day notice)
• New Jersey Statutes Section 2A:32A-1 (civil action for bad checks, 35-day notice, treble damages)
• Tennessee Code Section 47-29-101 (liability for dishonored check, treble damages, 30-day notice)
• Montana Code Section 27-1-717 (civil liability for bad checks, 10-day notice)
• Louisiana Revised Statutes Section 9:2782 (NSF check damages and attorney fees, 15-working-day notice)
• Washington Revised Code Section 62A.3-515 (dishonored check liability, 15-day notice)
• Pennsylvania Consolidated Statutes Section 8304 (damages in actions on bad checks, 10-day notice)
• DC Code Section 28-3152 (merchant civil recovery for dishonored checks, 30-day notice)
• Vermont Statutes Title 9, Section 2311 (civil action for dishonored checks, 30-day notice)
• Wisconsin Statutes Section 943.245 (civil action for worthless checks, 20-day notice, treble damages)
• South Carolina Code Section 34-11-75 (civil remedy for fraudulent checks, 30-day notice)
• Virginia Code Section 8.01-27.2 (civil recovery for giving bad check, 30-day notice)

Frequently Asked Questions