Iowa Notice of Bad Check or NSF Check - Civil Laws
This is a Notice of Bad Check or NSF Check - Civil. A "dishonored check" (also known as a "bounced check" or "bad check") is a Bad Check or NSF check which the bank will not pay because there is no such checking account, or there are insufficient funds in the account to pay the Bad Check or NSF check. In order to attempt the greatest possible recovery on a Bad Check or NSF check, the business owner, or any other person given a Bad Check or NSF check, may be required by state law to notify the debtor that the Bad Check or NSF check was dishonored.
Iowa Bad Check Law Summary - Iowa Notice of Bad Check or NSF Check - Civil Laws
Iowa Bad Check Law Summary
Notice of Bad Check or NSF Check
Note: This summary is not intended to be an all inclusive summary of the Iowa bad check laws, but does contain basic and other provisions.
Iowa Statutes
TITLE XIII - COMMERCE
SUBTITLE 5. - REGULATION OF COMMERCIAL ENTERPRISES
CHAPTER 554 - UNIFORM COMMERCIAL CODE
ARTICLE 3. - NEGOTIABLE INSTRUMENTS
PART 5. - DISHONOR
554.3513. Civil remedy for dishonor
1. In a civil action against a person who makes a bad check or NSF check, draft,
or order, which has been dishonored for lack of funds or credit, after having
been presented twice, or because the maker has no account with the drawee, the
plaintiff shall recover from the defendant total damages equaling three times
the face value of the dishonored bad check or NSF check, draft, or order, which
sum shall include the face value of the bad check or NSF check, draft, or order.
However, total recovery under this section shall not exceed by more than five
hundred dollars the amount of the bad check or NSF check, draft, or order and
may be awarded only if all of the following apply:
a. The plaintiff made written demand of the defendant for payment of the amount
of the bad check or NSF check, draft, or order not less than thirty days before
commencing the action.
b. The written demand notified the defendant that treble damages would be sought
if the face value of the dishonored bad check or NSF check was not paid within
thirty days of receipt, and was received by the defendant through personal
service or restricted certified mall.
c. The defendant has failed to tender to the plaintiff prior to commencement of
the action, an amount of money not less than the face value of the dishonored
bad check or NSF check, draft, or order.
d. The plaintiff clearly and conspicuously posted a notice at the usual place of
payment, or in a billing statement of the plaintiff, stating that civil damages
pursuant to this section would be sought upon dishonorment.
2. In an action for damages pursuant to subsection 1, if the court or jury
determines that the failure of the defendant to satisfy the dishonored bad check
or NSF check, draft, or order is due to economic hardship, the court or jury may
waive all or part of the allowable civil damages. However, if the court or jury
waives all or part of the civil damages, the court or jury shall render judgment
against the defendant in the amount of the dishonored bad check or NSF check,
draft, or order and the actual costs incurred by the plaintiff in bringing the
action.
3. This section does not apply if the reason for the dishonor of the bad check
or NSF check, draft, or order is that the maker has stopped payment pursuant to
section 554.4403 because of a bona fide dispute between the maker and the holder
relating to the consideration for which the bad check or NSF check, draft, or
order was given.
4. In actions brought pursuant to this section, no additional award pursuant to
section 554.3512 or 625.22 shall be made.
5. The plaintiff in a civil action to collect a dishonored bad check or NSF
check, draft, or order brought before the district court sitting in small claims
shall not request or recover punitive or exemplary damages, but may seek the
civil damages allowed under this section. The plaintiff in a civil action to
collect a dishonored bad check or NSF check, draft, or order in the district
court not sitting in small claims, may seek punitive or exemplary damages if
appropriate under chapter 668A, or civil damages allowed under this section, but
not both.
6. A violation of this section is an unlawful practice as provided in section
714.16, subsection 2, paragraph "a".