What chatges are allowed charges concerning a returned for insufficient funds rent check?

UPDATED: Oct 16, 2011

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What chatges are allowed charges concerning a returned for insufficient funds rent check?

Asked on October 16, 2011 under Real Estate Law, North Carolina


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

Custom and practice in the rental industry in this country with respect to allowable charges concerning a check returned due to insufficient funds is the amount that the bank charged the the payee along with the amount of the check.

However, many states such as California have statutes allowing the above but also a penalty upon the payor (maker of the check) of three times the amount of the dishonored check up to the total amount of five-hundred dollars ($500.00).

However to get such a penalty the payee typically has to file a small claims action against the maker of the check, go to trial and obtain a judgment.

In your situation, I would offer to pay the amount of the check and the bank service fee to the landlord and hope that resolves the situation.

Good luck.

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