Legal Question in Credit and Debt Law in California
Customer will not pay for bounced check
We own a drycleaning business. One of our customers paid w/ a check for $48 that bounced. When asked to pay the amount of the check + $3 bank fees for NSF, they stated they would and til this day have not. It's been a month now. How do we go about collecting this money. Can we file something with the state/county Attorney's office regarding fraud? Is there a formal 7-day/30-day notice we can send the check bouncer stating that if the fees are not paid we will file in small claims. What is California policy regarding this matter? Please respond...thank you.
3 Answers from Attorneys
Re: Customer will not pay for bounced check
See CCP section 411.20 and Civil Code section 1719. They will answer all of your questions on this subject.
Re: Customer will not pay for bounced check
You must provide written notice of the dishonored check and demand for payment. Your demand must include specific language from California Civil Code Section 1719.
If the party fails to pay the entire amount due (including some collection costs you'll see in the statute) within 30 days, you are then entitled to the unpaid balance PLUS three times that amount.
You can look up the law by going to:
http://www.leginfo.ca.gov/calaw.html
Check the box for Civil Code and then search for 1719.
Regards,
Ben
Re: Customer will not pay for bounced check
Thank you for your posting.
Your case is relatively simple ... and there are not notices that you need to give. If your customer fails to pay, you have the right to recover all your costs and additional damages as allowed under the law. Small claims court is available for amounts under $5,000.00, and might be the easiest way to get a judgment.
I hope that this information helps, but if you have other questions you need answered, or have other questions, or feel that you need legal representation, please feel free to contact me directly at [email protected]. I�m happy to help in any way that I can, and I wish you best of luck.