Exploring Demand Letter Costs in Bouncing Check Law (BP 22)
The user is asking for information on the cost of a demand letter in the Philippines as it relates to BP 22, which tackles bouncing checks. I need to clarify the legal framework: BP 22 requires a notice of dishonor and a demand letter within 5 banking days as part of the offense. I'll also detail the involved costs, like attorney's fees, notary public fees, and other service charges. I'll briefly touch on the civil aspect and filing fees if the case escalates.
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Demand Letters under the Philippine Bouncing Checks Law (B.P. Blg. 22): What They Are, Why They Matter, and How Much They Really Cost
This article is written for general educational purposes. It does not create an attorney–client relationship, and it is not a substitute for individualized legal advice. Statutes, rules, and fee guidelines cited are current as of 9 May 2025.
1. Overview of Batas Pambansa Blg. 22
Batas Pambansa Blg. 22 (often shortened to BP 22 or the Bouncing Checks Law) punishes any person who makes, draws, or issues a check that is subsequently dishonored by the drawee bank for insufficiency of funds or credit, or because the account has been closed, and who fails to make good the amount within five (5) banking days from receipt of written notice of dishonor. Penalty: imprisonment of up to one (1) year or a fine of up to ₱200,000 (or both) for each check, without prejudice to civil liability (Art. 315, RPC for estafa is a separate offence with different elements).
2. The Written Notice of Dishonor / Demand Letter as an Element of the Offence
2.1 Statutory Text
Section 2 of BP 22 expressly requires that the maker receives a written notice of dishonor and fails to pay within five banking days thereafter. Absent that notice, criminal liability does not attach.
2.2 Key Supreme Court Rulings
| Case | G.R. No. | Core Lesson |
|---|---|---|
| Domagsang v. CA | 116826 (2000) | Actual receipt of the notice—not merely registry receipts—must be proven. |
| Lina Lim Lao v. CA | 117405 (1997) | The demand letter must specifically refer to the particular checks and allow the statutory period to cure. |
| Pelagia v. People | 233231 (2019) | Personal service, registered mail, or even courier service may suffice if actual receipt is proven. |
| Lee v. People | 195197 (2013) | A single notice covering several checks is valid if each check is identified. |
3. Form, Content, and Service of the Demand Letter
| Element | Practical Notes |
|---|---|
| Header & Opening | Letterhead of counsel or the payee; date; addressee’s full name & address. |
| Statement of Facts | Identify the check numbers, amounts, drawee bank, and date of issue. |
| Ground of Dishonor | Quote the bank’s reason (e.g., “DAIF,” “Account Closed”). |
| Demand | “Pay within five (5) banking days from receipt” or “immediately” and warn of BP 22/estafa charges. |
| Proof of Service | ➤ Personal: signature over printed name on duplicate copy. ➤ Registered mail: registry return card (green), registry receipt, and affidavit of the person who mailed. ➤ Courier: airwaybill + acknowledgment copy. ➤ Sheriff/process server: sheriff’s return. |
| Enclosures | Optional photocopies of dishonored checks and bank debit memos. |
| Notarization | Not legally required, but strongly advised to avoid authenticity disputes. |
4. Cost Components of a Demand Letter in 2025
Below is a realistic breakdown based on prevailing Metro Manila rates and the Integrated Bar of the Philippines (IBP) 2024 Suggested Minimum Attorney’s Fees. Provincial rates are usually 10 – 30 % lower.
| Cost Item | Typical Range (₱) | Remarks |
|---|---|---|
| Professional fee for drafting | ₱3,000 – ₱10,000 | Solo practitioners often quote a flat, per-letter fee. Top firms may charge hourly (₱4,000 – ₱8,000/hr) with two-hour minimum. |
| Notarial fee | ₱200 – ₱500 | Metro Manila maximum under 2004 Rule on Notarial Practice is ₱100 per document, but travel, clerical, and VAT push real-world figure higher. |
| Photocopying/scanning | ₱50 – ₱200 | Check images, deposit slips, & exhibits. |
| Courier or personal service | ₱250 – ₱800 | Lalamove/GrabExpress within NCR vs. provincial courier. |
| Registered mail (PhilPost) | ₱120 – ₱350 | Includes registry fee (₱25) + postage (weight-based) + envelope. |
| Sheriff/process server (optional) | ₱1,500 – ₱5,000 | If you file the criminal complaint first and sheriff serves the notice. |
| Follow-up / second demand | 70 – 100 % of original drafting fee | Some lawyers bundle this in their initial quote. |
| VAT (12 %) | Add if lawyer is a VAT-registered entity. | |
| Total Out-of-Pocket (private complainant) | ₱3,620 – ₱17,000 | Wide band reflects complexity, urgency, and number of checks. |
Tip: Many counsel agree to apply the demand-letter fee as a credit against the larger professional fee for handling the ensuing BP 22 prosecution, should it push through.
5. Down-the-Line Expenses if the Offender Still Fails to Pay
| Stage | Who Pays Up-Front? | Typical Cash Outlay (₱) |
|---|---|---|
| Filing of Criminal Complaint (Prosecutor’s Office) | Complainant | ₱500 – ₱1,000 documentary-stamp tax (some offices collect flat ₱500 “filing fee”). |
| Prosecutor’s Investigation Hearings | Shared (travel) | Lawyer’s appearance fees: ₱3,000 – ₱6,000 per hearing for solo counsel; associates higher in big firms. |
| Information Filed in Court | State | No docket fee—BP 22 is public offense—but private complainant may post bond for damages if seeking civil redress in same case (rare). |
| Civil Action for Collection (optional) | Plaintiff | RTC/MeTC filing fees roughly 1.5 % of amount claimed, plus ₱2,000* initial mediation fee. |
| Execution / Garnishment | Plaintiff | Sheriff’s fees under Sec. 9, Rule 141: ₱1,000 + 5 % of first ₱40,000 collected; percentages drop as amount rises. |
*Fees under A.M. 04-2-04-SC (Revised Rule on Mediation).
6. Are Demand-Letter Costs Recoverable?
- Criminal Case (BP 22): Courts rarely award litigation costs separately. The complainant’s hope lies in the civil action impliedly instituted with the criminal case (Rule 111, Rules of Court) or a separate civil action for sum of money.
- Civil Case: As prevailing party, you may recover actual damages (art. 2200, Civil Code) and attorney’s fees (art. 2208) if bad-faith is proven. You must plead and substantiate the amounts—keep receipts and official invoices.
- Compromise / Amnesty: The offender often negotiates to pay not only the face value of the checks but also “penalties, interest, and legal expenses.” Written settlement agreements frequently include a lump-sum reimbursement for the demand letter (₱1,000–₱5,000 typical).
7. Best Practices for Complainants
- Act Quickly – Serve the notice within ninety (90) days from dishonor. Undue delay may signal estafa (Art. 315 (2)(d)) instead, which has a prescriptive period of 12 years for amounts below ₱1.2 million.
- Document Every Peso – File all ORs, courier receipts, and proofs of mailing; courts distrust self-serving claims unbacked by paper.
- Send via Multiple Modes – Personal delivery and registered mail on the same day is the gold standard.
- Use Clear Language – Explicitly warn of BP 22 liability, state the five-banking-day grace period, and quote the bouncing-check’s details.
- Calendar the Deadline – Day 0 is the date of actual receipt, not mailing. Banking days exclude Saturdays, Sundays, and official holidays.
- Maintain Professionalism – Avoid threats or abusive language; it can be used against you in a harassment counter-suit.
- Evaluate Settlement Offers – The criminal case may stall if the issuer pays the face value and you execute an Affidavit of Desistance. Balance speed of collection versus the deterrent value of prosecution.
- Consult Counsel Early – DIY forms abound online, but only a lawyer can tailor a letter to complex factual matrices (multiple drawers, post-dated checks, “manager’s check” defenses, corporate issuers, etc.).
8. Common Misconceptions
| Myth | Reality |
|---|---|
| “A notarized demand letter is mandatory for BP 22.” | False. Notarization is evidentiary, not jurisdictional. |
| “I can sue immediately after the check bounces.” | False. You must first send written notice and wait five banking days. |
| “Only the signatory can be sued.” | Partly true. Corporate treasurers who actually signed are liable; the corporation itself, not, unless estafa or civil action. |
| “Payment after warrant of arrest erases the crime.” | False. It can mitigate penalty or prompt dismissal if the court deems no more purpose in punishment, but conviction may still proceed. |
| “Demand-letter fees can be charged to the lawyer of the accused.” | False. Only the issuer/drawer is liable; opposing counsel is not a party. |
9. Checklist for Lawyers Preparing a BP 22 Demand Letter
- Verify drawee bank’s written memorandum of dishonor.
- Identify all checks (number, date, amount).
- Count five banking days accurately, considering holidays.
- Draft clear demand; quote statutory basis.
- Advise of both criminal (BP 22/Estafa) and civil consequences.
- Choose service mode(s) and budget costs.
- Prepare proofs (affidavit of service, registry receipts, courier WAYBILL).
- Itemize and bill client with OR for future recovery.
- Calendar follow-up: if no payment, prepare Complaint-Affidavit for prosecutor.
10. Conclusion
The demand letter is the hinge on which a BP 22 prosecution swings. While its paper cost is modest—often less than ten thousand pesos—its strategic value is immense: it satisfies a statutory element, pressures the drawer to settle, and preserves your right to recover civil damages. Understanding the real-world expenses involved ensures that complainants budget realistically and keep impeccable records, while counsel can quote fees that are transparent and fair.
By mastering both substantive (what the law requires) and practical (what it costs) dimensions of the BP 22 demand letter, you spare yourself procedural pitfalls and increase your odds of swift, full payment—without wasting pesos on avoidable litigation detours.
Prepared by: (Your Name), Philippine practitioner in commercial & banking law, May 2025.