How to read the numbers here
California's bad check rules sit in Civil Code section 1719, which sets the demand process, service charge caps and treble damages described on this page. The state also allows installment, payday and title loans, each overseen by the California Department of Financial Protection and Innovation under Financial Code sections covering those products. Californians dealing with a bounced check or a loan decision can reach nonprofit credit counseling through the NFCC, file a complaint with the Consumer Financial Protection Bureau or the state Attorney General's consumer office, or see BenefitsCal for benefits information.
What California law says about a bad check
Under California Civil Code section 1719, a person who writes a check that is later dishonored for insufficient funds or a closed account can face civil consequences once the payee sends a written demand. The statute sets out a specific notice and payment process rather than treating every bounced check as a crime, and the facts on this page cover that civil process only. If a drawer is also facing criminal charges over a check, that is a separate matter and a reason to contact legal aid or a qualified attorney rather than relying on this page.
Service charges a business may add
California law lets a payee add a service charge to a dishonored check, with a lower cap allowed for a first dishonored check from a drawer and a higher cap allowed for each later dishonored check from that same drawer, both set by Civil Code section 1719. This charge is meant to cover the payee's handling costs and is separate from any damages that follow a missed deadline after a demand letter. A business cannot set its own charge above what the statute allows.
Damages if you do not pay after a demand letter
If a payee mails a written demand and the drawer does not pay the check amount and the service charge within the notice period, California law allows the payee to pursue damages equal to three times the unpaid check amount, subject to a floor and a cap set by Civil Code section 1719. The 30 day notice period runs from the date the demand is mailed, so a drawer who pays promptly after receiving the written demand can avoid this exposure. These damages are a civil remedy decided case by case, not an automatic penalty.
Loan options if you need money
If a shortfall led to the check problem in the first place, California law allows installment loans, payday loans and title loans, each regulated by the California Department of Financial Protection and Innovation under Financial Code sections covering those products, including changes made by the Fair Access to Credit Act. Pricing and terms vary by lender, so look at the cost example on this page rather than any number quoted elsewhere. The request form on this site tells you what kind of credit check happens before you send it. BadCreditMD is not a lender or broker. A lending network partner shares requests with lenders. Lenders set their own rates and decide whether to lend.
Where to get help in California
Before a bounced check becomes a bigger debt, California residents can reach out to nonprofit credit counseling through the NFCC agency finder, file a complaint about a lender or collector with the Consumer Financial Protection Bureau, or contact the California Attorney General's consumer protection office. The California Department of Financial Protection and Innovation oversees installment, payday and title lenders in the state. Anyone needing food, cash or other benefits assistance can also check BenefitsCal, and the statewide information and referral service can point to local nonprofit help.
Key facts
- Civil damages ruleDamages equal to treble the unpaid check amount, not less than $100 nor more than $1,500, if the drawer fails to pay within 30 days of a certified-mail demand, under California law.[1]
- Notice periodThe drawer has 30 days from the date a written demand is mailed by certified mail to pay the check and service charge before treble damages become due, under California law (30 days).[1]
- Service fee maximumUp to $25 may be charged for a first dishonored check and up to $35 for each later dishonored check from the same drawer, under California law ($35).[1]
- Statute citationCal. Civ. Code Section 1719[1]
- Treble damagesCalifornia allows treble damages under Civil Code section 1719, capped between $100 and $1,500 (3 times).[1]
Lending rules in California: California lending laws.
Common questions
Is writing a bad check a crime in California
The facts on this page describe the civil process under Civil Code section 1719, including the demand letter, service charges and treble damages. They do not cover criminal check laws. If a drawer is facing criminal charges over a check, that is a separate legal question, and contacting legal aid or a qualified attorney is the right next step rather than relying on this page.
Can a business charge a service fee and still seek treble damages
Yes. Civil Code section 1719 treats the service charge and the treble damages as separate remedies. A payee can add the allowed service charge to cover handling costs and, if the drawer still does not pay within the notice period after a written demand sent by mail, also pursue treble damages subject to the statutory floor and cap.
Who handles complaints about an installment payday or title lender in California
The California Department of Financial Protection and Innovation regulates installment, payday and title lenders under the Financial Code sections cited on this page. For a broader consumer complaint about a lender or debt collector, the Consumer Financial Protection Bureau also takes reports, and the California Attorney General's consumer protection office is another option.
What proof should a drawer keep after paying a disputed check
Civil Code section 1719 ties the deadline and the damages risk to the date the written demand is mailed, so keeping the mailing receipt, any correspondence with the payee, and proof of payment such as a receipt or bank record helps show the check and service charge were paid within the notice period if a dispute comes up later.
Sources
- California Legislative Information, California State Legislature. California Civil Code Section 1719.