Hawaii Demand Letter

Introduction

Key Things to Know

1. 1

   Hawaii's Unfair or Deceptive Acts or Practices Act requires no pre-suit notice before you sue for damages, and Hawaii Revised Statutes Section 480-13 awards a prevailing consumer a sum of not less than $1,000, or threefold actual damages, whichever is greater, plus mandatory attorney's fees. An elder may in the alternative be awarded not less than $5,000, and class actions lose the minimum.

2. 2

   State your demand in specific numbers. Name the exact amount owed, the contract, invoice, or dishonored check it comes from, and a firm deadline to pay or act.

3. 3

   If your claim involves a dishonored check, Hawaii Revised Statutes Section 490:3-506 requires a written demand sent by certified mail, restricted delivery, with a return receipt requested marked deliver to addressee only, stating that nonpayment within 10 days may result in treble damages; you may not sue until at least 10 days after that demand and only if the amount owed was not tendered before suit.

4. 4

   The dishonored-check civil penalty is $100 or triple the check amount, whichever is greater, capped so total damages do not exceed the check amount by more than $500; a court may waive the statutory damages for economic hardship but must still award at least the check amount plus incurred costs and fees, under Section 490:3-506.

5. 5

   Hawaii's Small Claims Division of the District Court hears money claims up to $5,000, exclusive of interest and costs, under Section 633-27(a). Unlike some states, Hawaii lets an attorney appear with the court's approval, except in a residential landlord-tenant security deposit dispute, under Section 633-28(b).

6. 6

   Hawaii generally gives six years to sue on a debt founded on a written contract, an oral contract, or an open account under Section 657-1, except debts under Chapter 577A, which follow that chapter, and two years for damage to property under Section 657-7. A claim for unpaid goods may carry a different period.

7. 7

   Keep the tone firm and factual, not threatening. Do not threaten arrest, jail, or criminal prosecution to collect a civil debt. Hawaii's Chapter 480D collection practices act separately bars threatening that nonpayment will result in arrest, with no exception, and it reaches an original creditor collecting its own consumer debt.

Hawaii Requirements for Demand Letter

• 10-Day Dishonored-Check Demand Precondition

  Hawaii Revised Statutes Section 490:3-506 allows the section's civil penalty only if the plaintiff made a written demand at least 10 days before filing suit, and only if the amount owed was not tendered before suit was filed.

• Certified-Mail Restricted Delivery for a Bad-Check Demand

  Section 490:3-506 requires the dishonored-check demand to be sent by certified mail, restricted delivery, to the drawer's last known address, with a return receipt requested marked deliver to addressee only, and to state that nonpayment within 10 days may result in treble damages.

• Dishonored-Check Civil Penalty Amount

  Section 490:3-506 sets the penalty at $100 or triple the check amount, whichever is greater, capped so total damages do not exceed the check amount by more than $500. A court may waive the statutory damages for economic hardship but must still render judgment for at least the check amount plus incurred costs and fees.

• UDAP Damages Floor With No Presuit Notice

  Hawaii Revised Statutes Section 480-13 requires no notice before a consumer sues for an unfair or deceptive act or practice, and awards a prevailing consumer not less than $1,000, or threefold actual damages, whichever is greater, plus mandatory attorney's fees. An elder may in the alternative be awarded not less than $5,000, and class actions lose the minimum.

• Assumpsit Attorney's Fees Without Presentment

  Hawaii Revised Statutes Section 607-14 awards reasonable attorney's fees, capped at 25 percent of the judgment, to the prevailing party in an assumpsit action or an action on a written contract that itself provides for a fee, with no requirement to present the claim or wait a set period first.

• Original Creditors Covered by Collection Practices Act

  Hawaii's collection practices act, Chapter 480D, defines a covered debt collector to include a person who is not a licensed collection agency and who collects consumer debts owed to itself, so an original creditor collecting its own consumer account is covered, unlike the federal FDCPA.

• Unqualified Bar on Arrest Threats

  Hawaii Revised Statutes Section 480D-3(4) bars a debt collector from threatening that nonpayment will result in arrest, with no exception for an arrest that is actually contemplated and lawful.

• Small Claims Limit and Attorney Appearance

  Hawaii's Small Claims Division of the District Court hears a money claim up to $5,000, exclusive of interest and costs, under Section 633-27(a). An attorney may appear with the court's approval under Section 633-28(b), except in a residential landlord-tenant security deposit dispute.

• Statute of Limitations by Claim Type

  Hawaii Revised Statutes Section 657-1 generally gives six years to sue on a written contract, an oral contract, or an open account, except debts under Chapter 577A, which that chapter governs. Section 657-7 gives two years to sue for damage to property.