My Rent Check For $500 Was Returned By The Bank For Insufficient Funds. My Landlord Wants To Charge Me A $25 Fee And $300 To Cover Costs.

Yes, Georgia law provides that any person, including landlords, who receive bad checks can demand, by certified mail, payment in cash within ten days from receipt. If your rent check was refused by the bank due to a lack of funds, your landlord can charge a returned check fee and charge you for damages. If you do not pay the charges, your landlord can sue you to recover the fee and damages. The service charge for the returned check may not exceed $25 or 5% of the amount of the check, whichever is greater. The landlord can recover up to double the amount of the check for damages he suffered, but no more than $500. Additionally, if the check was written with the knowledge that it would not be honored by the bank, the check writer could face criminal prosecution.

The information on this page is meant to provide a general overview of the law. The laws in your state and/or city may deviate significantly from those described here. If you have specific questions related to your situation you should speak with a local attorney.

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