Proposal would ban separate ACH rent fees, require costs be folded into advertised rent

Senator Duxi Gureka introduced LB880 to prohibit landlords from charging tenants a separate extra fee for rent payments made by automated clearing-house (ACH) transfer; the bill would require any processing costs to be incorporated into the stated monthly rent.

Proponents including Legal Aid of Nebraska and housing-service groups said ACH convenience fees can be modest but cumulative and often are not clearly disclosed before lease signing. Scott Mertz of Legal Aid said mandatory ACH fees are "a small but recurring financial burden" that can push cost-burdened renters into arrears and eviction, especially when managers treat rent and processing fees as separate transactions that can both incur late penalties.

Opponents — primarily real-estate and landlord representatives — argued many landlords do not mandate ACH and that property-management platforms sometimes charge fees or require processing to operate. They said the bill would either force rents to be raised across all tenants to cover costs or create operational burdens; several suggested narrower transparency or disclosure requirements would be a better fix. An amendment under consideration would clarify that landlords must disclose payment fees and allow non‑electronic payment alternatives.

Committee members discussed caps, disclosure language and whether landlords should be required to offer non-electronic payment options. No vote was taken; sponsors indicated willingness to work on narrow transparency language.