Bad Check:

Any person who knowingly issues a check which is refused by the the bank because he does not have sufficient funds on deposit in or credit with the bank upon presentation, and fails to pay to the payee the same amount plus any service charges imposed by the bank and payee for processing the dishonored check in cash within 30 days following a written demand therefor, may be liable for the amount of the check, the service charges and process fees, and for additional damages of three times the amount of the check not to exceed $500 and not less than $100.00.  (6-21-2-3(a).)  The processing fee permitted under § 25-3-506 of the North Carolina General Statutes is $20.00 provided that the payee has conspicuously posted a sign, in plain view, and with prints no smaller than 8"x11", in the immediate vicinity of the cash register or other place where the check is received, stating the amount of fee which would be charged on returned check.

The holder of a bad check is required to send two written demands before initiating any action to recover the damages above described.  The initial written demand must be mailed by certified mail to the maker of the check at his last known address and in substantially the following format:
 

"This letter is written pursuant to G.S. 6-21.3 to inform you that on ________________, you made and delivered to the business listed above a check payable to this business containing your name and address in the sum of $________, drawn upon ________________ (bank or institution), account # _______________. [If the check  was received in a face-to-face transaction insert this sentence: This check contained a drivers license identification number from a card with your photograph and mailing address, which was used to identify you at the time the check was accepted.]  [If the check was delivered by mail insert this sentence: We have compared your name, address, and signature on the check with the name, address, and signature on file in the account previously established by you or on your behalf, and the signature on the check appears to be genuine.]   have received no information that this was a stolen check, if that is the circumstance.
 
The check has been dishonored by the bank for the following reasons:

As acceptor of the check, we give you notice to rectify any bank error or other error in connection with the transaction, and to pay the face value of the check, plus the fees  as authorized under G.S. 25-3-506 and G.S. 6-21.3(a) as follows:

Face value of the check                                                             $__________________
Processing fee authorized under G.S. 25-3-506                            $__________________
Bank service fees authorized under G.S. 6-21.3                           $__________________
Total amount due:                                                                      $__________________

If the total amount due listed above is not paid within 30 days of the mailing of this letter, thereafter we may file a civil action to seek civil damages of three times the amount of the check (with a minimum damage of one hundred dollars ($100.00) and a maximum damage of five hundred dollars ($500.00)) for allegedly giving a worthless check in violation of law (G.S. 6-21.3), in addition to the amount of the check and the fees specified above.

Appropriate relief will then be sought before a court of proper jurisdiction for full payment of the check plus all costs, treble damages, and witness fees.

If you do not believe you are liable for these amounts, you will have a right to present your defense in court. To pay the check or obtain information, contact the undersigned at the above business location. Cash or a bank official check will be the only acceptable means of redeeming the dishonored check.

If you do not believe that you owe the amount claimed in this letter or if you believe you have received this letter in error, please notify the undersigned at the above business location as soon as possible."  (6-21-3(a1).)

If after the first notice, the maker of the dishonored check failed to pay the sums as demanded, the holder may file an action to recover the amounts demanded, including reasonable attorney fees and court costs,  30 days after mailing a second written demand in substantially the same as follows:  (6-21-3(a2), 6-21-3(b).)
 

"On __________________, we informed you that we received a check payable to this business containing your name and address in the sum of $ __________, drawn upon _____________________ (bank or institution), account # ________________. This check contained identification information which was used to identify you as the maker of the check. Also, we have received no information that this was a stolen check, if that is the circumstance.

The check has been dishonored by the bank for the following reasons:
_________________________________________________

We notified you that you were responsible for the face value of the check ($________) plus the fees authorized under G.S. 25-3-506 ($________) and G.S. 6-21.3(a) ($________) for a total amount due of $ _____________. Thirty days have passed since the mailing of that notification letter, and you have not made payment to us for that total amount due.

Under G.S. 6-21.3, we claim you are now liable for the face value of the check, the fees, and treble damages. The damages we claim are three times the amount of the check or one hundred dollars ($100.00), whichever is greater, but cannot exceed five hundred dollars ($500.00). The total amount we claim now due is:

Face value of the check                                                                 $___________
Processing fee authorized under G.S. 25-3-506                                $___________
Bank service fees authorized under G.S. 6-21.3                               $___________
Three times the face value of the check, with a minimum
    of $100.00 and a maximum of $500.00                                        $___________
Total amount due:                                                                          $___________

Payment of the total amount claimed above within 30 days of the mailing of this letter shall satisfy this civil remedy for the returned check.

If payment has not been received within this 30-day period, we will seek appropriate relief before a court of proper jurisdiction for full payment of the check plus all costs, treble damages, and witness fees.

If you do not believe you are liable for these amounts, you will have a right to present your defense in court.  To pay the check or obtain information, contact the undersigned at the above business location. Cash or a bank official check will be
the only acceptable means of redeeming the dishonored check.

If you do not believe that you owe the amount claimed in this letter or if you believe you have received this letter in error, please notify the undersigned at the above business location as soon as possible."

The issuance of a worthless check may constitute a Class I felony under §14-107 of the North Carolina General Statutes if the amount of the check is more than $2,000, or a misdemeanor if the amount of the check is $2,000 or less.