Are bounced check fees allowed for rent payments?

Bounced Check Fees for Rent Payments in New Hampshire: Guidance for Tenants

In New Hampshire, the relationship between landlords and tenants is governed by the state’s landlord-tenant laws, which do not explicitly regulate bounced check fees charged for rent payments. However, understanding the general legal framework around fees and tenant rights can help renters better navigate situations involving non-sufficient funds (NSF) checks.

This guide provides a detailed overview of bounced check fees within New Hampshire rental agreements, what tenants should know about these charges, and suggestions for addressing bounced check issues.

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1. Understanding Bounced Check Fees in New Hampshire

What Are Bounced Check Fees?

• A bounced or NSF check fee is a charge a landlord may impose when a rent payment check is returned unpaid by the bank due to insufficient funds, a closed account, or other reasons.
• This fee is typically intended to cover administrative costs and bank fees incurred by the landlord.

New Hampshire Law on Bounced Check Fees

• Unlike some aspects of landlord-tenant law, New Hampshire statute does not specifically limit or regulate the amount landlords can charge for bounced check fees.
• Fees need to be reasonable and not punitive. Excessive fees could potentially be challenged under general contract or consumer protection principles.
• Landlords can include bounced check fees in the rental agreement, making it a term the tenant agrees to upon signing the lease.

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2. What Tenants Should Know About Bounced Check Fees

Lease Agreement Terms

• Review your lease carefully: Most landlords disclose any fees related to bounced checks in the lease or rental agreement.
• These fees vary widely but are commonly set between $20 and $50 per bounced check.
• New Hampshire tenants are advised to ensure the lease specifies:

- The amount of any bounced check fees - Any requirements for fee payment timeframe - Methods for subsequent rent payment to avoid further issues

Reasonableness of Fees

• While New Hampshire law does not cap bounced check fees, the fee must be reasonable and reflect actual costs.
• An unreasonably high fee might be challenged, especially if it exceeds bank fees or the landlord’s administrative costs.

Timing and Payment of Fees

• Fees are typically due alongside the replacement rent payment.
• Failure to pay the bounced check fee in addition to rent can lead to late fees or other lease penalties, and possibly eviction if unresolved.

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3. Handling Bounced Check Situations: Best Practices for Tenants

Immediate Action

• If your check bounces, contact your landlord promptly to explain and arrange payment.
• Offer to pay the rent and the bounced check fee by certified funds, money order, or electronic payment to avoid recurrence.

Request Fee Documentation

• You may request that your landlord provide documentation or proof of any bank fees incurred due to the bounced check.
• This transparency helps ensure the fee charged is fair and accurate.

Avoid Repeated NSF Payments

• Multiple bounced checks can strain landlord-tenant trust and risk eviction.
• Consider safer payment methods like electronic transfers, cashier’s checks, or automatic withdrawals.

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4. Additional Legal Protections and Remedies

Consumer Protection

• Under New Hampshire’s Consumer Protection Act, charges must be lawful and not unconscionable.
• Excessive bounced check fees could potentially be contested if they are deemed unfair or deceptive.

Security Deposits and Late Fees

• Bounced check fees are separate from late fees, which are also regulated only by the lease terms.
• Landlords cannot deduct bounced check fees from your security deposit unless specific lease provisions allow it.

Eviction for Nonpayment

• Writing multiple bad checks for rent may lead to eviction proceedings.
• New Hampshire law requires landlords to provide notice and opportunity to cure rent nonpayment.

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5. Summary for Tenants in New Hampshire

• Bounced check fees are generally allowed if disclosed in the lease, but New Hampshire law does not specifically regulate these fees.
• Fees should be reasonable, reflect actual costs, and be included as a lease term.
• Tenants should:

- Carefully review their lease agreement - Immediately resolve any bounced check issues - Pay bounced check fees promptly - Use reliable payment methods to avoid future fees

• If you believe a fee is unfair or excessive, consider discussing it with your landlord or consulting with a local tenant advocacy organization or attorney.

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By staying informed of your rights and responsibilities related to bounced check fees in New Hampshire, you can better manage rental payments and maintain a positive landlord-tenant relationship.