How to read the numbers here
Iowa treats a dishonored check as both a possible civil claim and, in some cases, a criminal matter. Iowa Code Section 554.3513 lets a holder sue for three times a check's face value, including the face value, with a capped additional amount set by statute, tied to a 30 day notice period. Iowa Code Section 714.1(6) allows an inference of theft if the writer does not pay within 10 days of notice that the bank refused the check. Installment, payday and title loans are allowed under Iowa law, overseen by the Iowa Division of Banking, Superintendent of Banking. Iowa Legal Aid and the Iowa Attorney General can help with bad check problems or financial stress.
Civil damages for a dishonored check
Under Iowa Code Section 554.3513, a person who holds a check that was presented twice and dishonored for lack of funds, or that was drawn on a nonexistent account, may bring a civil action against the person who wrote it. The statute allows recovery of three times the face value of the check, which includes the face value itself, subject to a capped additional amount above the check's value that is set out in the statute. This is a civil remedy, separate from any criminal charge, and it is meant to compensate the holder rather than punish the writer beyond what the law allows.
Notice before a civil claim or criminal charge
Iowa Code Section 554.3513 ties the civil remedy to a notice period of 30 days, which affects when a holder can proceed with a claim after a check is dishonored. Separately, under Iowa Code Section 714.1(6), a court or jury may infer that the person who wrote the check knew it would not be paid if the bank refused payment for insufficient funds and the writer did not pay the holder within 10 days after receiving notice of the refusal, sent by certified mail or delivered in person. These notice periods matter because they can determine whether a case moves forward as a civil matter, a criminal matter, or both.
When a bad check can be charged as theft
Iowa Code Section 714.1(6), which defines theft, covers situations where a person writes a check knowing there are not enough funds or credit with the bank to cover it. If the drawee bank refuses payment for insufficient funds and the writer does not pay the holder within the notice period described above, the law allows a court or jury to infer the writer knew the check would not be paid. That inference can support a theft charge under this section. Anyone contacted about a possible bad check charge in Iowa should take the notice seriously and consider contacting legal aid for guidance on their rights and options.
Borrowing options in Iowa
If money is tight and a bad check is part of a larger cash flow problem, Iowa residents have several borrowing options to consider. Personal installment loans are allowed under Iowa law under Iowa Code chapter 536, including section 536.13, and are overseen by the Iowa Division of Banking, Superintendent of Banking. Payday loans are allowed under Iowa law under Iowa Code chapter 533D, with the same regulator. Title loans are also allowed under Iowa law under Iowa Code chapter 536. Before choosing any of these, ask the lender about the APR, the repayment period and the payment amount; the representative example on this page shows how those pieces fit together. 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 Iowa
If you received a notice about a dishonored check, or you are worried about a possible theft charge, Iowa Legal Aid can explain your legal rights and help you understand next steps. The Iowa Attorney General accepts consumer complaints if you believe you were treated unfairly. The Consumer Financial Protection Bureau also takes complaints about financial products. If you need broader support, such as help with bills or benefits, the Iowa Department of Health and Human Services lists how to apply for services, and a statewide information and referral helpline can connect you to local resources by phone or online. A nonprofit credit counseling agency found through the National Foundation for Credit Counseling agency finder can also help you build a plan that avoids writing checks you cannot cover.
Key facts
| Measure | Figure |
|---|---|
| Notice period[1] | 30 daysYear 2026 |
- Civil damages ruleA civil action on a check dishonored for lack of funds after being presented twice, or drawn on a nonexistent account, may recover total damages of 3 times the face value, including the face value, but no more than 500 dollars above the check amount, under Iowa Code Section 554.3513.[1]
- Prosecution notice requirementA court or jury may infer the maker knew a check would not be paid if the drawee refused payment for insufficient funds and the maker did not pay the holder within 10 days of receiving notice of the refusal, sent by certified mail or personal service, under Iowa Code Section 714.1(6).[2]
- Statute citationIowa Code Section 714.1(6), theft defined[2]
Lending rules in Iowa: Iowa lending laws.
Related loan rules: Payday loans in Iowa.
Common questions
Can I go to jail in Iowa for writing a bad check?
Iowa Code Section 714.1(6) defines theft to include writing a check knowing there are not enough funds to cover it. If the bank refuses payment and the writer does not pay the holder within the notice period the law describes, a court or jury may infer the writer knew the check would not be paid, which can support a theft charge. Consequences depend on the facts of each case, so anyone facing this situation should seek legal aid.
How much can someone sue me for over a bounced check in Iowa?
Under Iowa Code Section 554.3513, a civil action can seek three times the face value of the check, including the face value itself, but the law caps the additional amount a holder can recover above the check's value. The exact cap is set out in the statute itself rather than repeated here.
Does Iowa require notice before suing or charging someone over a bad check?
Yes. The civil remedy in Iowa Code Section 554.3513 involves a 30 day period, and the criminal inference under Iowa Code Section 714.1(6) depends on whether the writer paid the holder within 10 days after receiving notice of the bank's refusal, sent by certified mail or delivered in person.
Are payday and title loans allowed in Iowa if I need cash instead of writing a check?
Yes. Payday loans are allowed under Iowa law under Iowa Code chapter 533D, and title loans and personal installment loans are allowed under Iowa law under Iowa Code chapter 536. All three are overseen by the Iowa Division of Banking, Superintendent of Banking, and cost details appear in the example on this page.
Where can I get free help in Iowa about a bad check problem?
Iowa Legal Aid offers legal help on consumer issues including bad checks, the Iowa Attorney General takes consumer complaints, and a statewide information and referral helpline can point you to local resources. The Consumer Financial Protection Bureau also accepts complaints about financial products and services.
Sources
- Iowa Legislature. Iowa Code Section 554.3513, Civil remedy for dishonor.
- Iowa Legislature. Iowa Code Section 714.1, Theft defined.
Representative example
- Amount borrowed
- $1,000
- Annual percentage rate (APR)
- 29.99%
- Repayment
- 12 monthly payments
- Payment
- $97.48
- Finance charge
- $169.76
- Total of payments
- $1,169.76
Example: a $1,000 installment loan at 29.99% APR repaid in 12 monthly payments of $97.48 costs $1,169.76 in total, including a finance charge of $169.76. Illustration only; your lender will disclose your actual APR, payment schedule and total cost before you accept a loan.