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Assembly caps landlord bounced‑check fees at actual cost or $20
Summary
The Assembly passed A.56A to limit how much landlords may charge tenants for bounced checks to either the landlord's incurred cost or $20, whichever is less, and clarified that such fees must be written into a lease; the bill excludes rent‑stabilized tenants.
The New York State Assembly passed legislation (A.56A) limiting the amount a landlord can charge a tenant for a bounced check to the landlord’s actual bank cost or $20, whichever is less, and requiring such fees to be expressly stated in a written lease.
The bill’s sponsor, Assemblymember Epstein, told colleagues, “This bill puts a cap on how much a tenant would have to pay if there was a bounced check to the actual cost of, of the bounced check fee or $20, whichever is less.” The measure passed on a roll call, the clerk announced, with 89 ayes and 59 nays.
Supporters said the cap would protect tenants from excessive fees. Opponents raised concerns about unintended burdens on small, owner‑occupied landlords and asked whether the bill would require fees to be spelled out in leases.
During floor questions, Assemblymember Gandolfo asked the sponsor to clarify whether the bill “prohibit[s] the landlord from charging a fee back to the tenant should the tenant’s check bounce.” Epstein replied that the bill does not prohibit a fee but caps it and limits collection to fees that are agreed to in writing in the lease. Gandolfo pressed whether oral rental arrangements would leave landlords unable to collect a fee; Epstein said he would “find that hard to believe” landlords could collect absent written terms.
Several members described practical concerns. One member said smaller, informal landlords — for example, seniors who rent a unit in their house — might not realize they must add a clause to the lease and could be left unable to recover bank charges. Another member said the proposal should instead index to “the actual amount incurred by the landlord” rather than a $20 cap.
Epstein argued the bill corrects cases in which tenants were charged “$50, $100” for bounced checks when bank charges were far lower, and urged colleagues to support the measure. A party vote was requested and taken before the clerk recorded the final tally and declared the bill passed.
Votes at the final roll call were 89 in favor and 59 opposed. The act takes effect immediately, the clerk read at the conclusion of the vote.
