What is a Notice of Dishonored Check in New Hampshire?

Definition and Meaning of a Notice of Dishonored Check

A Notice of Dishonored Check in New Hampshire serves as a formal notification that a check has bounced, typically due to insufficient funds in the issuer's account. This notice is often required by New Hampshire Revised Statutes Annotated (RSA) 638:4, which outlines the legal implications for the drawer (the person who wrote the check). It establishes that the drawer may face legal consequences if the amount is not paid within a specified timeframe, usually fourteen days from the date of the notice.

This notice acts as prima facie evidence of an intent to defraud if the drawer fails to make the payment. The payee, or the person who received the check, may pursue various legal remedies, including reporting the incident to law enforcement or initiating a civil lawsuit against the drawer.

Key Elements of the Notice of Dishonored Check

Several essential components must be included in a Notice of Dishonored Check to ensure its validity and effectiveness:

• Drawer's Information: The name and address of the individual or entity that issued the check.
• Payee's Information: The name and address of the person or business to whom the check was written.
• Check Details: The check number, date of issuance, and the amount of the check.
• Reason for Dishonor: A clear statement indicating why the check was returned, such as insufficient funds.
• Payment Demand: A request for the total amount due, including any associated fees or costs.
• Response Timeframe: A specified period, typically fourteen days, for the drawer to make payment before further action is taken.

Steps to Complete the Notice of Dishonored Check

Completing a Notice of Dishonored Check involves several straightforward steps:

• Gather Information: Collect all relevant details about the check, including the drawer's and payee's information, check number, and the reason for dishonor.
• Draft the Notice: Create a document that includes all necessary elements outlined above. Ensure clarity and professionalism in the language used.
• Send the Notice: Deliver the notice to the drawer. This can be done via certified mail to ensure there is a record of delivery.
• Keep Records: Maintain copies of the notice and any correspondence related to the dishonored check for future reference.

Legal Use of the Notice of Dishonored Check

The Notice of Dishonored Check is not just a formality; it has significant legal implications. Under New Hampshire law, failing to provide this notice can affect the payee's ability to pursue legal action. If the drawer does not respond to the notice within the specified timeframe, the payee can escalate the matter:

• Criminal Charges: The drawer may face criminal charges for issuing a bad check, which can lead to fines or even imprisonment.
• Civil Lawsuit: The payee may file a civil lawsuit to recover the amount owed, along with any additional costs incurred due to the dishonored check.

Who Typically Uses the Notice of Dishonored Check?

Various individuals and entities may utilize a Notice of Dishonored Check, including:

• Businesses: Companies that accept checks as payment often issue notices for bounced checks to recover funds.
• Landlords: Property owners may issue notices to tenants who provide checks that bounce for rent payments.
• Service Providers: Freelancers and contractors may use this notice when clients fail to honor payment through checks.

Examples of Using the Notice of Dishonored Check

Consider two scenarios where a Notice of Dishonored Check is applicable:

• Scenario One: A small business receives a check from a client for services rendered. The check bounces due to insufficient funds. The business sends a Notice of Dishonored Check, allowing the client fourteen days to rectify the situation before pursuing legal action.
• Scenario Two: A landlord receives a bounced rent check from a tenant. The landlord issues a Notice of Dishonored Check, detailing the amount owed and the consequences of failing to pay within the specified timeframe.

State-Specific Rules for the Notice of Dishonored Check

New Hampshire has specific regulations governing the Notice of Dishonored Check. Understanding these rules is crucial for both payees and drawers:

• Timeframe: The law mandates that the drawer must be given fourteen days to pay the amount due after receiving the notice.
• Fees: Payees may charge a reasonable fee for processing the dishonored check, which should be clearly stated in the notice.
• Delivery Method: The notice should ideally be sent via certified mail to ensure the drawer receives it and there is proof of delivery.

Why Should You Issue a Notice of Dishonored Check?

Issuing a Notice of Dishonored Check is essential for several reasons:

• Legal Protection: It provides a documented record of the dishonored check, which is crucial if legal action becomes necessary.
• Encourages Payment: The notice serves as a formal reminder, prompting the drawer to settle the debt to avoid further consequences.
• Clarifies Obligations: It clearly outlines the obligations of the drawer, reducing misunderstandings regarding the payment.