Connecticut 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 check. In order to attempt the greatest possible recovery on a bad check or NSF check check, the business owner, or any other person given a bad check or NSF check check, may be required by state law to notify the debtor that the bad check or NSF check check was dishonored.
Connecticut Bad Check Laws Summary - Connecticut Notice of bad check or NSF check Check - Civil Law
Connecticut bad check or NSF check Law Summary
Notice of bad check or NSF check
Note: This summary is not intended to be an all inclusive summary of the Connecticut bad check laws, but does contain basic and other provisions.
NOTE: NOTICE MUST BE PRINTED IN BOTH ENGLISH AND SPANISH
CIVIL PROVISIONS
Connecticut bad check or NSF check laws and statutes
TITLE 52 - CIVIL ACTIONS
CHAPTER 925 - STATUTORY RIGHTS OF ACTION AND DEFENSES
Sec. 52-565a. Liability of drawer for bad check or NSF check. Service charge on drawer for bad check or NSF check.
(a) A drawer negotiating a check who knows or should know that payment of such bad check or NSF check will be refused by the drawee bank either because the drawer has no account with such bank or because the drawer has insufficient funds on deposit with such bank shall be liable to the payee for damages, in addition to the face amount of the bad check or NSF check, provided the payee has presented such bad check or NSF check for payment, the bad check or NSF check is dishonored and the drawer fails to pay the face amount of such bad check or NSF check within thirty days following the date of mailing by the payee of the written demand for payment as provided in subsection (f) of this section.
(b) In the case of a drawer negotiating a bad check or NSF check who knows or should know that payment of such bad check or NSF check will be refused by the drawee bank because the drawer has no account with such bank, such damages shall be in an amount to be determined by the court in light of the circumstances, but in no event shall such amount be greater than the face amount of the bad check or NSF check or seven hundred fifty dollars, whichever is less.
(c) In the case of a drawer negotiating a bad check or NSF check who knows or should know that payment of such bad check or NSF check will be refused by the drawee bank because the drawer has insufficient funds on deposit with such bank, such damages shall be in an amount to be determined by the court in light of the circumstances, but in no event shall such amount be greater than the face amount of the bad check or NSF check or four hundred dollars, whichever is less.
(d) The drawer shall not be liable to the payee for the damages provided for by this section if: (1) The drawer gave such check as payment for residential service supplied by a gas, electric, steam, telephone or water utility; (2) the drawer gave such check as payment for the rental of residential premises; or (3) the drawer gave such bad check or NSF check as repayment of all, or a portion of, a debt secured by collateral which the payee has repossessed.
(e) The damages provided for in this section shall be available only to those persons or entities which post or otherwise give conspicuous notice to the public of the damages which may be imposed pursuant to this section. Such notice shall set forth: (1) The damages that may be imposed if a bad check or NSF check is dishonored; (2) the section of the general statutes authorizing imposition of such damages; and (3) that criminal penalties also may apply.
(f) The written demand for payment on the bad check or NSF check shall be in the form prescribed by subsection (g) of this section and shall be sent to the drawer's last-known residence address or last-known place of business by first class mail and by certified mail return receipt requested with delivery restricted to the drawer, on or after the date the payee received notice that such check had been dishonored.
(g) The written demand for payment required by subsection (f) of this section shall be printed in at least ten-point type in both English and Spanish and shall include the following: (1) The name and last-known address of the drawer; (2) the amount and date of the dishonored bad check or NSF check; (3) the bank upon which the bad check or NSF check was drawn; (4) the name of the payee; (5) the reason the check was dishonored; (6) the address to which payment should be delivered; and (7) an explanation of the damages which may be imposed pursuant to this section in the event the drawer fails to pay the face amount of the bad check or NSF check.
(h) The penalties provided for in this section shall not apply to any bad check or NSF check for which payment has been stopped by the drawer or to any check where the drawer has raised a reasonable defense with respect to the validity of the underlying debt.
(i) Notwithstanding the provisions of this section, in the case of a drawer who negotiates a check which is dishonored, the payee or its assignee may impose on the drawer a service charge of up to twenty dollars, provided, no such service charge may be imposed if (1) the drawer has stopped payment on the check, (2) the check was stolen, or (3) the drawer has raised a reasonable defense with respect to the validity of the underlying debt. The drawer shall not be liable under this subsection for more than one such service charge for each bad check or NSF check.