Notice of Dishonored Check - Civil - 2nd Notice - Keywords: bad check, bounced check
Note: This summary is not intended to be an all
inclusive summary of the law of bad checks, but does contain basic and
other provisions.
Civil Provisions
Chapter 6. Liability for Court Costs.
ARTICLE 3. Civil Actions and Proceedings.
6-21.3. Remedies for returned check.
(a) Notwithstanding any criminal sanctions that may apply, a person,
firm, or corporation who knowingly draws, makes, utters, or issues and
delivers to another any check or draft drawn on any bank or depository
that refuses to honor the same because the maker or drawer does not have
sufficient funds on deposit in or credit with the bank or depository with
which to pay the check or draft upon presentation, and who fails to pay
the same amount, any service charges imposed on the payee by a bank or
depository for processing the dishonored check, and any processing fees
imposed by the payee pursuant to G.S. 25-3-506 in cash to the payee within
30 days following written demand therefor, shall be liable to the payee
(i) for the amount owing on the check, the service charges,
and processing fees and
(ii) for additional damages of three times the amount owing on the
check, not to exceed five hundred dollars ($500.00) or to be less than
one hundred dollars ($100.00). If the amount claimed in the first demand
letter is not paid, the claim for the amount of the check, the service
charges and processing fees, and the treble damages provided for in this
subsection may be made by a subsequent letter of demand prior to filing
an action. In an action under this section the court or jury may, however,
waive all or part of the additional damages upon a finding that the defendant's
failure to satisfy the dishonored check or draft was due to economic hardship.
The initial written demand for the amount of the check, the service
charges, and processing fees shall be mailed by certified mail to the defendant
at the defendant's last known address and shall be in the form set out
in subsection (a1) of this section. The subsequent demand letter demanding
the amount of the check, the service charges, the processing fees, and
treble damages shall be mailed by certified mail to the defendant at the
defendant's last known address and shall be in the form set out in subsection
(a2) of this section. If the payee chooses to send the demand letter set
out in subsection (a2) of this section, then the payee may not file an
action to collect the amount of the check, the service charges, the processing
fees, or treble damages until 30 days following the written demand set
out in subsection (a2) of this section.
(a2) If the total amount due in subsection
(a1) has not been paid within 30 days after the mailing of the notification
letter, a subsequent demand letter may be sent and shall be substantially
in the following form:
(b) In an action under subsection (a) of this section, the presiding
judge or magistrate may award the prevailing party, as part of the court
costs payable, a reasonable attorney's fee to the duly licensed attorney
representing the prevailing party in such suit.
(c) It shall be an affirmative defense, in addition to other defenses,
to an action under this section if it is found that:
(i) full satisfaction of the amount of the check or draft
was made prior to the commencement of the action, or
(ii) that the bank or depository erred in dishonoring the check
or draft, or
(iii) that the acceptor of the check knew at the time of acceptance
that there were insufficient funds on deposit in the bank or depository
with which to cause the check to be honored.
(d) The remedy provided for herein shall apply only if the check was
drawn, made, uttered or issued with knowledge that there were insufficient funds
in the account or that no credit existed with the bank or depository with
which to pay the check or draft upon presentation.
