Nebraska Demand Letter

Introduction

Key Things to Know

1. 1

   For any lawsuit of $4,000 or less, including a claim by an original creditor and not a personal injury claim, under Neb. Rev. Stat. Section 25-1801, if you present your claim and it remains unpaid ninety days after it accrued before you sue, you may recover a statutory attorney's fee and interest at 6 percent a year running from 30 days after the claim accrued, in addition to the judgment (Section 25-1801(1), (5)-(6)).

2. 2

   The statutory attorney's fee under Section 25-1801(3) is at least $10 when the judgment is fifty dollars or less, and $10 plus 10 percent of the judgment in excess of fifty dollars when the judgment is more than fifty dollars but not more than $4,000.

3. 3

   Nebraska's Consumer Protection Act does not require a pre-suit demand letter before you sue for an unfair or deceptive practice (Neb. Rev. Stat. Section 59-1609). A court may, in its discretion, increase damages for a Section 59-1602 violation specifically, but that increase cannot exceed $1,000.

4. 4

   Nebraska has no civil bad-check statute letting you collect double or triple a dishonored check's value in a private lawsuit. Neb. Rev. Stat. Section 28-611 is a criminal statute; its only monetary add-on is a flat $10 payment plus any reasonable bank handling fee, and it applies only when the drawer makes voluntary restitution or is convicted, not because a demand letter was sent.

5. 5

   Nebraska gives five years to sue on a written contract (Neb. Rev. Stat. Section 25-205(1)), four years on an oral contract (Section 25-206), and four years to sue for an injury to personal property or trespass upon real property (Section 25-207(1)-(2)).

6. 6

   Nebraska's Small Claims Court, a division of the County Court, hears claims up to $7,500 (Neb. Rev. Stat. Section 25-2802(4)), and no party may be represented by an attorney there except as the statute specifically provides (Section 25-2803(2)-(3)).

7. 7

   Keep the letter firm and factual, not threatening: never threaten arrest, jail, or criminal prosecution to collect a civil debt. Separately, if you are owed money on a written instrument or a settled account balance, Nebraska allows interest of 12 percent a year unless otherwise agreed (Neb. Rev. Stat. Section 45-104); on an unsettled account, that interest runs from the date of billing, not from the date of a demand letter, unless paid within 30 days of billing.

Nebraska Requirements for Demand Letter

• $4,000 Claim Presentment Under Section 25-1801

  For any lawsuit of $4,000 or less, including a claim by an original creditor, if the claim is presented and remains unpaid ninety days after it accrued before suit, Neb. Rev. Stat. Section 25-1801 lets the plaintiff recover the judgment plus a statutory attorney's fee and interest. The rule does not apply to a personal injury claim (Section 25-1801(5)-(6)).

• Statutory Attorney's Fee Schedule

  Under Neb. Rev. Stat. Section 25-1801(3), the statutory attorney's fee is at least $10 when the judgment is fifty dollars or less, and $10 plus 10 percent of the judgment in excess of fifty dollars when the judgment is more than fifty dollars but not more than $4,000.

• No Consumer Protection Act Pre-Suit Notice

  Nebraska's Consumer Protection Act gives an injured person a civil action for actual damages, costs, and a reasonable attorney's fee without requiring a pre-suit demand letter (Neb. Rev. Stat. Section 59-1609). A court may, in its discretion, increase damages for a Section 59-1602 violation specifically, capped at $1,000.

• No Civil Bad-Check Multiplier

  Neb. Rev. Stat. Section 28-611 is a criminal bad-check statute, not a civil one; it provides no double or triple damages for a payee. Its only monetary add-on is a flat $10 payment plus any reasonable bank handling fee, available only when the drawer makes voluntary restitution or is convicted.

• Never Threaten Criminal Charges to Collect

  Nebraska's theft-by-extortion statute makes it a crime to obtain money by threatening to accuse someone of a criminal offense (Neb. Rev. Stat. Section 28-513(1)(b)). A demand letter should state the facts and the amount owed and never threaten arrest, jail, or a criminal charge to collect a civil debt.

• Collection Agency Act Does Not Cover Original Creditors

  Nebraska's Collection Agency Act, Neb. Rev. Stat. Sections 45-601 to 45-623, is a licensing statute for third-party collection agencies. Its definition of collection agency excludes regular employees of a single creditor (Section 45-602(3)(a)), so it does not reach a first-party creditor's own demand letter.

• Interest Runs From Billing, Not This Letter

  Under Neb. Rev. Stat. Section 45-104, interest on an unsettled account runs from the date of billing rather than the date of a demand letter, unless the charge is paid within 30 days of billing. Settled accounts and written instruments bear interest of 12 percent a year unless otherwise agreed.

• Small Claims Court Limit and No Attorneys

  Nebraska's Small Claims Court, a division of the County Court, hears claims up to $7,500 (Neb. Rev. Stat. Section 25-2802(4)), and no party may be represented by an attorney there except as the statute specifically provides (Section 25-2803(2)-(3)).

• Statute of Limitations by Claim Type

  Nebraska gives five years to sue on a written contract (Neb. Rev. Stat. Section 25-205(1)), four years on an oral contract (Section 25-206), and four years to sue for an injury to personal property or trespass upon real property (Section 25-207(1)-(2)).