ILCS » Chapter 810 · Act 5
Illinois Compiled Statutes

810 ILCS 5/3-806 (2026)

Any person who issues a check or other draft that is not honored upon presentment because the drawer does not have an account with the drawee, or because the drawer does not have sufficient funds in his account, or because the drawer does not have sufficient credit with the drawee, shall be liable in the amount of $25, or for all costs and expenses, including reasonable attorney's fees, incurred by any person in connection with the collection of the amount for which the check or other draft was written, whichever is greater, and shall be liable for interest upon the amount of the check or other draft at the rate provided in subsection (1) of Section 4 of the Interest Act

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(810 ILCS 5/3-806) (from Ch. 26, par. 3-806)
    Sec. 3-806. Any person who issues a check or other draft that is not honored upon presentment because the drawer does not have an account with the drawee, or because the drawer does not have sufficient funds in his account, or because the drawer does not have sufficient credit with the drawee, shall be liable in the amount of $25, or for all costs and expenses, including reasonable attorney's fees, incurred by any person in connection with the collection of the amount for which the check or other draft was written, whichever is greater, and shall be liable for interest upon the amount of the check or other draft at the rate provided in subsection (1) of Section 4 of the Interest Act. Costs and expenses shall include reasonable costs and expenses incurred in the nonlitigated collection of the check or other draft.
    A person who undertakes a nonlitigated collection against the person who issued a check or other draft that is not honored upon presentment shall make a written demand by certified mail, return receipt requested, delivered to the last known address of that person in order to become eligible for any costs and expenses in excess of $25. The written demand shall demand payment within 30 days of the mailing of the demand and shall include notice of liability for the costs and expenses.
    A fee or charge not to exceed $4.50 may be assessed to any person or owner of a commercial checking account or other similar commercial account where a check or other draft that is deposited into the account is dishonored upon presentment because of insufficient funds or because the drawer does not have an account with the drawee; provided, however, that, the limitation on the fee or charge specified in this paragraph does not apply to any fee or charge assessed to any bank or other depository institution or to any non-commercial checking account or other similar non-commercial account.
(Source: P.A. 87-582; 87-624.)


 
    (810 ILCS 5/Art. 4 heading)
ARTICLE 4
BANK DEPOSITS AND COLLECTIONS


 
    (810 ILCS 5/Art. 4 Pt. 1 heading)
PART 1. GENERAL PROVISIONS AND DEFINITIONS

    
Notes of Decisions
Cited in 5 cases, 1998–2007 · leading case: Valerie D. Smith v. The Cash Store Mgmt., Inc. The Cash Store, Ltd. Harold L. Ahlberg Trevor L. Ahlberg & John Does 1-10, 195 F.3d 325 (7th Cir. 1999).
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Valerie D. Smith v. The Cash Store Mgmt., Inc. The Cash Store, Ltd. Harold L. Ahlberg Trevor L. Ahlberg & John Does 1-10, 195 F.3d 325 (7th Cir. 1999). · cites it 2× “For example, the holder of the check has available remedies created by the Illinois bad check statute, 810 ILCS 5/3-806, which mandates that if a check is not honored, the drawer shall be liable for interest and costs and expenses incurred in the collection of the amount of the…”
Jenkins v. Union Corp., 999 F. Supp. 1120 (N.D. Ill. 1998). “810 ILCS5/3-806 (1988). 17 . The Jenkins court applied section 1692k's civil liability requirements to the plaintiffs’ section 1692f(l) and section 1692e(2)(a) claims that the defendant was trying to collect unauthorized debts consisting of force-placed insurance premiums.”
Day v. Check Brokerage Corp., 511 F. Supp. 2d 950 (N.D. Ill. 2007). · cites it 2× “Defendants argue that the limitation on “costs and expenses” in 810 ILCS 5/3-806 refers only to litigation expenses and, therefore, their $20 “Bank charge to Merchant” fee is not prohibited.”
William D. Hahn v. McKenzie Check Advance of Illinois, Llc, Doing Bus. as Nat'l Cash Advance, 202 F.3d 998 (7th Cir. 2000). “We observed, among other things, that “the holder of the check has available remedies created by the Illinois bad check statute, 810 ILCS 5/3-806, which mandates that if a check is not honored, the drawer shall be liable for'interest and costs and expenses incurred in the…”
Van Jackson v. Check 'N Go of Illinois, Inc., 123 F. Supp. 2d 1079 (N.D. Ill. 2000). “The reasoning is that, because the lender has remedies available to him under the bad check statute, 810 ILCS 5/3-806, the check has value beyond the paper on which it is written.”
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