554.3513 Civil remedy for dishonor. 1. In a civil action against a person who makes a check, draft, or order, which has been dishonored for lack of funds or credit, after having been presented twice, or because themaker has no account with the drawee, the plaintiff shall recover from the defendant totaldamages equaling three times the face value of the dishonored check, draft, or order, whichsum shall include the face value of the check, draft, or order. However, total recovery underthis section shall not exceed by more than five hundred dollars the amount of the 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 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 check was not paid within thirty days of receipt, and was receivedby the defendant via any of the following methods: (1) Personal service.(2) Restricted certified mail.(3) Regular mail to at least one of the following addresses, supported by an affidavit of service by the defendant via any of the following methods: (1) Personal service.(2) Restricted certified mail.(3) Regular mail to at least one of the following addresses, supported by an affidavit of service retained by the payee or holder of the dishonored check, which affidavit shall bepresumptive evidence of the receipt of the demand by the maker three days from the date ofexecution of the affidavit: (a) The address printed or written on the check.(b) The address given by the drawer at the time of issuance of the check.(c) The last known address of the drawer.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 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 sectionwould 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 check, draft, or order is due to economichardship, the court or jury may waive all or uant to subsection 1, if the court or jury determines that the failure of the defendant to satisfy the dishonored check, draft, or order is due to economichardship, the court or jury may waive all or part of the allowable civil damages. However, ifthe court or jury waives all or part of the civil damages, the court or jury shall render judgmentagainst the defendant in the amount of the dishonored check, draft, or order and the actualcosts incurred by the plaintiff in bringing the action. 3. This section does not apply if the reason for the dishonor of the check, draft, or order is that the maker has stopped payment pursuant to section 554.4403 because of a bona fidedispute between the maker and the holder relating to the consideration for which the 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 check, draft, or order brought before the district court sitting in small claims shall not request or recover punitive or exemplarydamages, but may seek the civil damages allowed under this section. check, draft, or order brought before the district court sitting in small claims shall not request or recover punitive or exemplarydamages, but may seek the civil damages allowed under this section. The plaintiff in a civilaction to collect a dishonored check, draft, or order in the district court not sitting in smallclaims, may seek punitive or exemplary damages if appropriate under chapter 668A, or civildamages 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'. 95 Acts, ch 137, §3; 2003 Acts, ch 100, §1 Sat Dec 23 01:57:08 2023 Iowa Code 2024, Section 554.3513 (24, 0)
Iowa Legal Code