North Dakota Demand Letter
This letter applies North Dakota's dishonored-check notice-of-dishonor demand, its single six-year deadline for written and oral contract claims, and its $15,000 small claims court that allows attorneys.
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What is this demand about?
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Introduction
North Dakota does not require a written demand before most lawsuits, but if you are trying to collect on a dishonored check, North Dakota Century Code Section 6-08-16 requires you to send the debtor a written notice of dishonor, in substantially the form the statute sets out, before you can bring a civil action for the statute's own penalty. The debtor then has 10 days from receipt of that notice, not from the date you mail it, to pay the check in full plus any collection fees or costs of not more than $40, before you may sue for a civil penalty equal to the lesser of $200 or three times the amount of the check. North Dakota has no statute requiring a pre-suit demand before an ordinary contract, account, or Unlawful Sales or Advertising Practices Act claim, and it has no attorney's-fee presentment statute like some states use for services or account claims. North Dakota Century Code Section 28-26-04 goes further and voids as against public policy any clause in a note, bond, mortgage, or security agreement that promises to pay attorney's fees on default, so a demand letter cannot rely on that kind of clause here. North Dakota's Collection Agency Act, Chapter 13-05, regulates only third-party collection agencies and expressly exempts a creditor collecting its own debt, so this letter is not restricted by that chapter's conduct rules. If your claim is for a security deposit or a final paycheck, use DocDraft's security deposit demand letter or final paycheck demand letter pages instead. This page builds an ordinary demand letter into North Dakota law, with attorney review available before you send it.
Key Things to Know
- 1
If you are collecting on a dishonored check, North Dakota Century Code Section 6-08-16 requires a written notice of dishonor in substantially the statutory form before you may sue; the debtor then has 10 days from receipt of that notice to pay in full plus up to $40 in fees, before you may seek a civil penalty equal to the lesser of $200 or three times the check amount.
- 2
North Dakota's Unlawful Sales or Advertising Practices Act, Chapter 51-15, has no pre-suit notice requirement; Section 51-15-09 lets a private plaintiff sue directly, and the court may award up to three times actual damages if it finds the defendant knowingly committed the violation, plus mandatory attorney's fees for the prevailing plaintiff.
- 3
North Dakota has no attorney's-fee presentment statute for a contract, account, or services claim. Section 28-26-01(1) leaves attorney's fees to the parties' agreement, and Section 28-26-04 voids as against public policy any clause in a note, bond, mortgage, or security agreement promising to pay attorney's fees on default.
- 4
North Dakota gives 6 years to sue on a written contract, an oral contract, an open account, or for property damage, under Section 28-01-16(1), (3), and (4), subject to Sections 28-01-15 and 41-02-104, which can set a different period for some claims; unlike most states, there is no shorter period for an oral promise.
- 5
If the parties agreed on no interest rate in writing, Section 47-14-05 sets the legal rate for indebtedness at 6 percent a year. That interest runs from the day your right to recover became certain and capable of calculation, not from the date you send a demand letter.
- 6
North Dakota small claims court hears a claim of not more than $15,000, a single limit for any plaintiff or defendant, under Section 27-08.1-01(1). Unlike many states, North Dakota Rule of Court 10.2(a) allows either side to be represented by a lawyer in small claims court.
- 7
North Dakota's Collection Agency Act, Chapter 13-05, regulates only third-party collection agencies and exempts a creditor collecting its own debt under Section 13-05-02.3(9). Regardless, never threaten arrest, jail, or criminal prosecution to collect a civil debt.
Key decisions before you file
Before you file a Demand Letter in North Dakota, 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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North Dakota Requirements for Demand Letter
Dishonored-Check Notice of Dishonor
North Dakota Century Code Section 6-08-16 requires a written notice of dishonor mailed to the debtor before suing for the statute's civil penalty. The debtor has 10 days from receipt of the notice to pay in full plus collection fees or costs of not more than $40, and the penalty is the lesser of $200 or three times the amount of the check.
Notice of Dishonor Must Use the Statutory Form
Section 6-08-16 requires the notice of dishonor to be in substantially the form the statute itself sets out. A demand letter that mentions the dishonored check does not replace that notice; mail the notice of dishonor separately in the statutory form.
No Consumer Pre-Suit Notice Requirement
North Dakota's Unlawful Sales or Advertising Practices Act, Chapter 51-15, has no pre-suit demand step; Section 51-15-09 lets a private plaintiff sue directly. The court may award up to three times actual damages for a knowing violation, and attorney's fees are mandatory for the prevailing plaintiff.
No Attorney's-Fee Presentment Statute
Section 28-26-01(1) leaves attorney's fees in a civil action to the parties' agreement, with no presentment statute tying fees to a demand letter. Section 28-26-04 separately voids as against public policy any note, bond, mortgage, or security-agreement clause promising to pay attorney's fees on default.
6-Year Limitations Period Across Claim Types
North Dakota Century Code Section 28-01-16(1), (3), and (4) gives 6 years to sue on a written contract, an oral contract, an open account, or for property damage, subject to Sections 28-01-15 and 41-02-104, with no shorter period for an oral promise.
Default 6 Percent Legal Interest Rate
Section 47-14-05 sets the default legal interest rate on indebtedness at 6 percent a year absent a different written agreement. Section 32-03-04 runs that interest from the day the right to recover became certain and capable of calculation, not from the date of a demand letter.
$15,000 Small Claims Limit, Attorneys Allowed
North Dakota Century Code Section 27-08.1-01(1) caps small claims court at $15,000 in a single tier for any plaintiff or defendant. North Dakota Rule of Court 10.2(a) allows either party to be represented by a lawyer there.
Collection Agency Act Exempts First-Party Creditors
North Dakota's Collection Agency Act, Chapter 13-05, regulates third-party collection agencies collecting debts owed to another. Section 13-05-02.3(9) exempts a creditor collecting its own debt, so this chapter's conduct rules do not restrict an original creditor's own demand letter.