This NOTICE AND DEMAND FOR PAYMENT ON BAD CHECK allows you to :

1. Demand your money in writing, and
2. Provide the legal notice under California law that makes the person who wrote you the bad check liable to you in the amount of the bad check PLUS damages equal to three times (3x) the amount of the bad check (capped at $1,500.00). This is called "TREBLE DAMAGES" in legal jargon.

This form is not intended for use by a debt collector and certain other people as discussed in the "Things To Consider" section below.

The NOTICE AND DEMAND FOR PAYMENT ON BAD CHECK contains the legal notice required for you to be able to get treble damages. If you use a demand letter that does not contain the required legal notice, you will not be entitled to treble damages.

Why is this so important?

• Treble damages creates pressure to get you paid:
  • By being subject to triple damages liability, the bad check writer has more to lose by going to court. Thus, he will be more inclined to pay you your money and avoid going to court.
• Treble damages makes it more worth your while in case you must to go to court:
  • If you are not paid even after the notice and demand, then at least, when you go to court, you will be going for a larger dollar amount which may offset the time and effort you put into collecting your money.

You can quickly and easily prepare a NOTICE AND DEMAND FOR PAYMENT ON BAD CHECK, containing the required legal language, by using the . The instructions inlcuded with the final document assist you in further complying with California Civil Code section 1719.

DRAWER: The person who writes and signs a check is called the "drawer" of that check.

PAYEE: The person to whom the check is written is called the "payee."

DRAWEE: The bank or financial institution that is supposed to pay out on the check is called the "drawee" of the check.

"PASSING" A CHECK: When you give someone a check to pay them, it may be referred to as "passing" a check or "to pass" a check.

TREBLE DAMAGES: Three times (3x) the amount of the bad check, with minimum damages equal to $100.00 and maximum damages equal to $1,500.00. See California Civil Code section 1719.

If someone paid you with a bad check, and you could not resolve the problem with him/her directly, your legal recourse is limited to a couple of choices. To collect your money, you could

1. Demand your money in writing and then sue the person in court to obtain a judgment, or
2. Contact the district attorney in your area to see if they have a bad check program and whether or not they can help you.

More often than not, you will have to file a lawsuit against the person who wrote you the bad check. If you decide to do so, you should follow the procedures outlined below because you can potentially get a judgment equal to the bad check PLUS treble damages.

If you have been passed a bad check, you are not automatically entitled to treble damages. You must first send a NOTICE AND DEMAND FOR PAYMENT ON BAD CHECK pursuant to California Civil Code section 1719.

You can quickly and easily prepare a NOTICE AND DEMAND FOR PAYMENT ON BAD CHECK by using the . Instructions on how to correctly send the demand are provided with your final document (if you do not send it correctly, you will not be entitled to treble damages).

Once you send the NOTICE AND DEMAND FOR PAYMENT ON BAD CHECK , you must wait at least thirty (30) days. This is because by law, the drawer of the bad check has thirty (30) days to pay you in full the amount of the check, the amount of the bank service charge, and the costs to mail the demand. Upon expiration of the thirty (30) days, if these sums are not paid in full, then the drawer is liable INSTEAD for both of the following:

1. The amount of the check, minus any partial payments made toward the amount of the check or the service charge, and
2. Damages equal to treble that amount (minimum $100; maximum $1500).
   There shall be no liability for any service charge or for costs of mailing when there is liability for treble damages.

Of course, you still need to sue in court and obtain a judgment. If you obtain a judgment in your favor and you have properly provided the California Civil Code section 1719 notice, then the court MUST award you the treble damages.

A "stop payment" check is considered a bad check. HOWEVER, if the stop payment was placed BECAUSE OF A GOOD FAITH DISPUTE, then you will not be entitled to treble damages.

What is a good faith dispute? California Civil Code section 1719(b) states that a good faith dispute exists when the "court finds that the drawer had a reasonable belief of his or her legal entitlement to withhold payment." When is someone legally entitled to withhold payment? Under this code section, a legal entitlement to withhold payment includes the following: services were not rendered, goods were not delivered, goods or services purchased are faulty, not as promised, or otherwise unsatisfactory, or there was an overcharge. Of course, there could be other situations that would also provide a legal basis to withhold payment.

So if the drawer contacts you, but tells you that he/she stopped payment on the check because he/she has a dispute with your service or merchandise (or whatever you are supposed to get paid for), then you must assess whether the dispute is in good faith. If you determine that the stop payment was not in good faith, and you decide to proceed to court, you will not be entitled to treble damages (or a service charge and costs of mailing), UNLESS you prove to the court by clear and convincing evidence that there was no good faith dispute. You must also prove to the court that you made a reasonable effort to resolve the dispute with the drawer before going to court.

In terms of costs, the law makes the drawer of a bad check liable to the payee for the following:
1) A service charge not to exceed $25 for the first bad check
2) A service charge not to exceed $35 for every subsequent bad check.

In addition, if you send a demand for payment, the drawer of the bad check is liable for costs of mailing.

However, if you win treble damages in court, you will not be entitled to any service charge or costs for mailing.

Additionally, you are not entitled to a service charge if the drawer provides written proof that the check did not cash because of an error by the bank or because the account did not have sufficient funds as a result of a late transfer or direct deposit by a government benefit assistance payment (for example, a late direct deposit of social security funds by the government).

You can sue in small claims court ONLY if you are the original payee. If you are not the original payee, you cannot sue in small claims court, but you may sue in any other appropriate court. See California Civil Code section 1719(e).

Furthermore, you can only sue in small claims court up to a certain dollar limit (known as the jurisdictional limit of the court). If the total amount you want to sue for is above that limit (typically $5000.00), you may consider suing in a court with higher jurisdictional limits.

1. A debt collector,
2. A creditor that regularly collects debts in the ordinary course of business, attempting to collect a consumer debt, or
3. Someone other than the original payee of the bad check.

1. Lack of funds or credit in the account to pay the check,
2. The person who wrote the check does not have an account with the drawee, or
3. The person who wrote the check instructed the drawee to stop payment on the check.

Do not use this form if you have been given a check that did not cash for any other reason.