When a check, draft or order has been dishonored, after presented trice, for lack of funds, a credit may pursue a civil action to recover the amount of the check and seek damages for three times the amount of the check up to a maximum of $500.00. However, the treble damages may generally be awarded only if the creditor has complied with the written notice requirement under Section 554.3513 of the Iowa Code.

A prerequisite for the recovery of treble damages is that the creditor has "clearly and conspicuously posted a notice at the usual place of payment, or in a billing statement of the creditor, stating that civil damages pursuant to Section 554.3513 would be sought upon dishonorment". In addition, thirty (30) days before a creditor commences a civil action to recover the damages on a dishonored check, he must send a written demand to the debtor either by personal service or by restricted certified mail, notifying the debtor that if the face amount of the dishonored check is not paid within thirty (30) days, treble damages would be sought.