CIV § 1719

$25 / $35 service charge for returned checks - CIV § 1719

Returned check service charge: $25 first, $35 subsequent. After 30-day demand, treble damages of $100-$1,500. (CIV § 1719)

Official text CIV § 1719 — California

(a) (1) Notwithstanding any penal sanctions that may apply, any person who passes a check on insufficient funds shall be liable to the payee for the amount of the check and a service charge payable to the payee for an amount not to exceed twenty-five dollars ($25) for the first check passed on insufficient funds and an amount not to exceed thirty-five dollars ($35) for each subsequent check to that payee passed on insufficient funds.

(2) Notwithstanding any penal sanctions that may apply, any person who passes a check on insufficient funds shall be liable to the payee for damages equal to treble the amount of the check if a written demand for payment is mailed by certified mail to the person who had passed a check on insufficient funds and the written demand informs this person of (A) the provisions of this section, (B) the amount of the check, and (C) the amount of the service charge payable to the payee. The person who had passed a check on insufficient funds shall have 30 days from the date the written demand was mailed to pay the amount of the check, the amount of the service charge payable to the payee, and the costs to mail the written demand for payment. If this person fails to pay in full the amount of the check, the service charge payable to the payee, and the costs to mail the written demand within this period, this person shall then be liable instead for the amount of the check, minus any partial payments made toward the amount of the check or the service charge within 30 days of the written demand, and damages equal to treble that amount, which shall not be less than one hundred dollars ($100) nor more than one thousand five hundred dollars ($1,500). When a person becomes liable for treble damages for a check that is the subject of a written demand, that person shall no longer be liable for any service charge for that check and any costs to mail the written demand.

(3) Notwithstanding paragraphs (1) and (2), a person shall not be liable for the service charge, costs to mail the written demand, or treble damages if he or she stops payment in order to resolve a good faith dispute with the payee. The payee is entitled to the service charge, costs to mail the written demand, or treble damages only upon proving by clear and convincing evidence that there was no good faith dispute, as defined in subdivision (b).

(4) Notwithstanding paragraph (1), a person shall not be liable under that paragraph for the service charge if, at any time, he or she presents the payee with written confirmation by his or her financial institution that the check was returned to the payee by the financial institution due to an error on the part of the financial institution.

(5) Notwithstanding paragraph (1), a person shall not be liable under that paragraph for the service charge if the person presents the payee with written confirmation that his or her account had insufficient funds as a result of a delay in the regularly scheduled transfer of, or the posting of, a direct deposit of a social security or government benefit assistance payment.

(6) As used in this subdivision, to “pass a check on insufficient funds” means to make, utter, draw, or deliver any check, draft, or order for the payment of money upon any bank, depository, person, firm, or corporation that refuses to honor the check, draft, or order for any of the following reasons: (A) Lack of funds or credit in the account to pay the check. (B) The person who wrote the check does not have an account with the drawee. (C) The person who wrote the check instructed the drawee to stop payment on the check.

(b) For purposes of this section, in the case of a stop payment, the existence of a “good faith dispute” shall be determined by the trier of fact. A “good faith dispute” is one in which the court finds that the drawer had a reasonable belief of his or her legal entitlement to withhold payment. Grounds for the entitlement include, but are not limited to, the following: services were not rendered, goods were not delivered, goods or services purchased are faulty, not as promised, or otherwise unsatisfactory, or there was an overcharge.

(c) In the case of a stop payment, the notice to the drawer required by this section shall be in substantially the following form: NOTICE To: (name of drawer) (name of payee) is the payee of a check you wrote for $ (amount) . The check was not paid because you stopped payment, and the payee demands payment. You may have a good faith dispute as to whether you owe the full amount. If you do not have a good faith dispute with the payee and fail to pay the payee the full amount of the check in cash, a service charge of an amount not to exceed twenty-five dollars ($25) for the first check passed on insufficient funds and an amount not to exceed thirty-five dollars ($35) for each subsequent check passed on insufficient funds, and the costs to mail this notice within 30 days after this notice was mailed, you could be sued and held responsible to pay at least both of the following:

(1) The amount of the check.

(2) Damages of at least one hundred dollars ($100) or, if higher, three times the amount of the check up to one thousand five hundred dollars ($1,500). If the court determines that you do have a good faith dispute with the payee, you will not have to pay the service charge, treble damages, or mailing cost. If you stopped payment because you have a good faith dispute with the payee, you should try to work out your dispute with the payee. You can contact the payee at: (name of payee) (street address) (telephone number) You may wish to contact a lawyer to discuss your legal rights and responsibilities. (name of sender of notice) (d) In the case of a stop payment, a court may not award damages or costs under this section unless the court receives into evidence a copy of the written demand that, in that case, shall have been sent to the drawer and a signed certified mail receipt showing delivery, or attempted delivery if refused, of the written demand to the drawer’s last known address.

(e) A cause of action under this section may be brought in small claims court by the original payee, if it does not exceed the jurisdiction of that court, or in any other appropriate court. The payee shall, in order to recover damages because the drawer instructed the drawee to stop payment, show to the satisfaction of the trier of fact that there was a reasonable effort on the part of the payee to reconcile and resolve the dispute prior to pursuing the dispute through the courts.

(f) A cause of action under this section may be brought by a holder of the check or an assignee of the payee. A proceeding under this section is a limited civil case. However, if the assignee is acting on behalf of the payee, for a flat fee or a percentage fee, the assignee may not charge the payee a greater flat fee or percentage fee for that portion of the amount collected that represents treble damages than is charged the payee for collecting the face amount of the check, draft, or order. This subdivision shall not apply to an action brought in small claims court.

(g) Notwithstanding subdivision (a), if the payee is the court, the written demand for payment described in subdivision (a) may be mailed to the drawer by the court clerk. Notwithstanding subdivision (d), in the case of a stop payment where the demand is mailed by the court clerk, a court may not award damages or costs pursuant to subdivision (d), unless the court receives into evidence a copy of the written demand, and a certificate of mailing by the court clerk in the form provided for in subdivision (4) of Section 1013a of the Code of Civil Procedure for service in civil actions. For purposes of this subdivision, in courts where a single court clerk serves more than one court, the clerk shall be deemed the court clerk of each court.

(h) The requirements of this section in regard to remedies are mandatory upon a court.

(i) The assignee of the payee or a holder of the check may demand, recover, or enforce the service charge, damages, and costs specified in this section to the same extent as the original payee.

(j) (1) A drawer is liable for damages and costs only if all of the requirements of this section have been satisfied.

(2) The drawer shall in no event be liable more than once under this section on each check for a service charge, damages, or costs.

(k) Nothing in this section is intended to condition, curtail, or otherwise prejudice the rights, claims, remedies, and defenses under Division 3 (commencing with Section 3101) of the Commercial Code of a drawer, payee, assignee, or holder, including a holder in due course as defined in Section 3302 of the Commercial Code, in connection with the enforcement of this section.

Text as published in the 2026 snapshot of the code.

Source: Vaquill Open US Law, compiled from official state publishers (huggingface.co), reproduced under license CC BY 4.0.

Read this provision at the official source →

What it actually says

Section 1719 turns a bounced cheque into a claim with a statutory bonus, provided the payee follows the procedure. Paragraph (a)(1) makes a person who passes a check on insufficient funds liable to the payee for the amount of the check plus a service charge of up to $25 for the first such check and up to $35 for each subsequent one to that payee.

Paragraph (a)(2) is where the real leverage is, and it depends entirely on a formal step. If the payee mails a written demand by certified mail informing the drawer of the provisions of the section, the amount of the check and the amount of the service charge, the drawer has 30 days from mailing to pay the check, the service charge and the mailing costs. If they do not, they become liable for the amount of the check and damages equal to treble that amount, not less than $100 and not more than $1,500 — and once treble damages attach, the service charge and mailing costs fall away. Subdivision (c) sets out the prescribed form of the notice for stop-payment cases.

The defences are real. Paragraph (a)(3) removes liability for the service charge, mailing costs and treble damages where the drawer stopped payment to resolve a good faith dispute with the payee — and subdivision (b) defines that as a reasonable belief of legal entitlement to withhold payment, expressly including that services were not rendered, goods were not delivered, goods or services were faulty, not as promised or otherwise unsatisfactory, or there was an overcharge. The payee bears the burden of proving by clear and convincing evidence that there was no good faith dispute. Paragraphs (a)(4) and (a)(5) remove the service charge where the drawer produces written confirmation of a bank error, or of insufficient funds caused by a delayed social security or government benefit direct deposit. Paragraph (a)(6) defines passing a check on insufficient funds to include stopping payment. Getting the certified-mail demand right is what the treble damages depend on, and it is worth doing with advice.

When it applies

A customer's cheque comes back marked insufficient funds
Someone stops payment on a cheque after receiving the goods
A cheque for rent or a deposit that does not clear
You want to know what the certified letter has to say
You stopped payment because the work was not done properly
A bank error caused the cheque to be returned

What this section does not say

Treble damages are not automatic. They arise only after a written demand mailed by certified mail containing the prescribed information, and 30 days without payment.
It does not catch a genuine dispute. Paragraph (a)(3) and subdivision (b) protect a drawer who stopped payment with a reasonable belief of entitlement to withhold, including because goods or services were faulty.
The treble figure is bounded. Damages under paragraph (a)(2) are not less than $100 and not more than $1,500, whatever the size of the check.
It is not the criminal offence. The section applies "notwithstanding any penal sanctions that may apply", and prosecution is a separate matter decided by a prosecutor.
It does not cover every failed payment. The section is about a check, draft or order returned for lack of funds or credit, no account, or a stop-payment instruction.

Worked examples

Invented situations, written to show how the wording bites. They are not real cases, not judgments and not precedent, and nothing here predicts what would happen in yours.

Illustrative example

A tradesperson is paid by check for a completed job and the check comes back marked insufficient funds. Two months of messages go unanswered.

How the wording applies

Section 1719 allows the amount of the check, a service charge, and treble damages of not less than $100 and not more than $1,500, but only after a written demand sent by certified mail containing the information the section prescribes, followed by 30 days without payment. The fact the outcome turns on is whether that letter was sent in that form, because a series of texts, however clear, does not start the clock.

How the parties settled it

The customer pays the face amount plus the service charge within a fixed period, and the tradesperson claims nothing further provided payment clears on time.

Illustrative example

A homeowner stops payment on a check after finding that half the agreed work was not done. The contractor demands treble damages.

How the wording applies

Subdivision (b) and paragraph (a)(3) protect a drawer who stopped payment with a good faith and reasonable belief in a legal right to withhold, including where the goods or services were faulty. It hinges on whether that belief was reasonable at the time payment was stopped, which is a question about the state of the work then, not about who is right about the contract overall.

How the parties settled it

The parties agree a reduced figure for the work actually completed, paid immediately by transfer, and the contractor withdraws the demand for a penalty.

Related sections

CIV § 3301 Lost profits must be clearly ascertainable - CIV § 3301 CIV § 1717 One-sided attorney fee clauses are reciprocal, CIV § 1717 CIV § 3333 Full Compensation for All Detriment Caused | CIV § 3333

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We copy this text from the official publisher and re-check it against that source on every page load, but we cannot guarantee it is complete, current or free of error, and we accept no liability for any reliance on it. An amendment can take effect before a consolidation catches up. The publisher's own copy is linked below; where the two differ, it is the official one that counts.

This page reproduces the text of CIV § 1719 in force at the date shown and explains it in general terms. It is not legal advice and takes no account of the circumstances of your case, which can change the answer completely. For a live dispute, for limitation periods, and before taking any step in court, consult a qualified lawyer in California.

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