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Montana Demand Letter

Montana's Consumer Protection Act skips a pre-suit notice step, while a dishonored-check demand under Mont. Code Ann. 27-1-717 needs its own written notice and a 10-day wait before suit.

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What is this demand about?

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Introduction

Montana's Consumer Protection Act does not require a consumer to send any written notice before suing for damages: Mont. Code Ann. Section 30-14-133(1)(a) lets a consumer who suffers an ascertainable loss from an unlawful practice under Section 30-14-103 go straight to court, and the court may award up to three times the money damages for that loss, so long as actual damages do not exceed $100,000, with a recovery floor of the ascertainable loss or $500, whichever is greater. On an ordinary contract or account claim, attorney's fees generally follow the contract: absent a fee clause or a specific statute, each side usually bears its own fees. A court may still award discretionary fees, capped at $250 an hour, to either prevailing party on a Consumer Protection Act claim, except that no fee award is available once a consumer recovers $100,000 or more in actual damages. A dishonored check works differently: Mont. Code Ann. Section 27-1-717 lets you demand, in writing, a service charge of not more than $30, and to also recover civil damages equal to that charge plus the greater of $100 or three times the check amount, capped so the total never exceeds the check's value by more than $500, but only if your written demand was mailed at least 10 days before you file suit and the issuer failed to pay the demanded amount before suit. Separately, the Montana courts' official comparison chart of civil courts (courts.mt.gov) lists a certified demand letter and a 10-day wait after mailing it as a Small Claims Court requirement, though that step does not appear in the small claims statute and the Justice Court's own small claims instructions do not mention it, so confirm it with your local court. If your dispute involves a security deposit or a final paycheck, Montana applies its own rules to those claims, covered on their own demand letter pages rather than repeated here. This page builds an ordinary demand letter into Montana law, with attorney review available before you send it.

Key Things to Know

  1. 1

    If a check to you was dishonored, Mont. Code Ann. Section 27-1-717 lets you demand a service charge of not more than $30 in writing, and to recover civil damages equal to that charge plus the greater of $100 or three times the check amount, capped so the total never exceeds the check's value by more than $500, but only if you mail your written demand at least 10 days before filing suit and the issuer fails to pay the demanded amount before suit.

  2. 2

    Montana's Consumer Protection Act does not require a pre-suit notice before you sue for damages (Mont. Code Ann. Section 30-14-133(1)(a)), but a court may award up to three times your ascertainable loss, so long as actual damages do not exceed $100,000, with a recovery floor of the ascertainable loss or $500, whichever is greater.

  3. 3

    On a Consumer Protection Act claim, attorney's fees are discretionary, available to either prevailing party, and capped at $250 an hour, with no fee award at all once a consumer recovers $100,000 or more in actual damages. On an ordinary contract or account claim, fees generally follow the contract: absent a fee clause or a specific statute, each side usually bears its own fees.

  4. 4

    Montana's Small Claims Court, a division of the Justice Court, hears money claims up to $7,000, exclusive of costs (Mont. Code Ann. Section 25-35-502(1)), and a party may not be represented by an attorney unless all parties are represented (Section 25-35-505(2)).

  5. 5

    The Montana courts' official comparison chart of civil courts (courts.mt.gov) lists a certified demand letter and a 10-day wait after mailing it as a Small Claims Court requirement, but the small claims statute and the Justice Court's own small claims instructions do not mention it, so confirm it with your local court.

  6. 6

    Montana gives 6 years to sue on a written contract and 5 years to sue on an oral contract or an account not founded on a writing (Mont. Code Ann. Section 27-2-202(1)-(2)).

  7. 7

    If no written agreement fixes a different rate, Montana law sets a default legal interest rate of 10 percent a year on money due on a written instrument, an account stated, money lent or due on a settled account, or money received for another's use, running from the day the debt became due, not from the date of a demand letter (Mont. Code Ann. Section 31-1-106(1); Section 27-1-211). Never threaten arrest, jail, or criminal prosecution to collect a civil debt.

Key decisions before you file

Before you file a Demand Letter in Montana, a few decisions shape the document: which option to choose and what each one means. The Demand Letter guide walks through them.

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Montana Requirements for Demand Letter

  • Bad-Check Written Demand and 10-Day Wait

    Mont. Code Ann. Section 27-1-717(4) makes civil damages on a dishonored check available only if the payee mailed a written demand, stating the check value and the service charge, at least 10 days before filing suit, and the issuer then failed to tender the demanded amount before suit was filed.

  • Bad-Check Damages Capped at Check Value Plus $500

    Mont. Code Ann. Section 27-1-717(3) sets civil damages at the service charge plus the greater of $100 or three times the check amount, but the total recovery may not exceed the check's value by more than $500. A separate flat service charge of not more than $30 may be demanded in writing without a lawsuit.

  • No Consumer Protection Act Pre-Suit Notice

    Mont. Code Ann. Section 30-14-133(1)(a) lets a consumer who suffers an ascertainable loss from an unlawful practice under Section 30-14-103 sue for damages without first sending any pre-suit written notice to the other party.

  • Treble Damages Only If Actual Damages Do Not Exceed $100,000

    Mont. Code Ann. Section 30-14-133(1)(a) lets a court award up to three times a consumer's ascertainable loss, but only if actual damages do not exceed $100,000, with a recovery floor of the ascertainable loss or $500, whichever is greater. No punitive damages are allowed on top of that award.

  • Consumer Protection Act Fees Discretionary and Capped

    Mont. Code Ann. Section 30-14-133(3) lets a court award discretionary attorney's fees, capped at $250 an hour, to either prevailing party on a Consumer Protection Act claim, but no fee award is allowed at all once a consumer recovers $100,000 or more in actual damages.

  • Small Claims Court Limit and No-Attorney Rule

    Montana's Small Claims Court, a division of the Justice Court, hears money claims up to $7,000, exclusive of costs, under Mont. Code Ann. Section 25-35-502(1), and a party may not be represented by an attorney unless all parties are represented, under Section 25-35-505(2).

  • Small Claims Court's Own Certified-Demand Practice

    The Montana courts' official comparison chart of civil courts (courts.mt.gov) lists a certified demand letter and a 10-day wait after mailing it as a Small Claims Court requirement, but the small claims statute and the Justice Court's own small claims instructions do not mention it, so confirm it with your local court.

  • Limitations Periods and Default Interest Rate

    Montana gives 6 years to sue on a written contract and 5 years to sue on an oral contract or an account not founded on a writing, under Mont. Code Ann. Section 27-2-202(1)-(2). Absent a different written rate, Section 31-1-106(1) sets a default legal interest rate of 10 percent a year on written instruments, accounts stated, and settled accounts, running from the day the debt became due under Section 27-1-211.

Frequently Asked Questions