Minnesota bounced rent checks: a $30 service charge, if you posted the notice
Under Minnesota Statutes 604.113, a payee may charge up to $30 on a dishonored check, but only if notice of the charge was conspicuously displayed on the premises when the check was issued. If the check is still unpaid 30 days after a proper notice of dishonor, the issuer owes the check, the charge, a civil penalty, interest and sometimes attorney fees.
When can a Minnesota owner charge the $30?
Subdivision 2(a) allows a service charge, not to exceed $30, to be imposed immediately on any dishonored check by the payee or holder, "regardless of mailing a notice of dishonor." The condition is the sign: notice of the service charge must have been conspicuously displayed on the premises when the check was issued. The displayed notice also has to tell the issuer that civil penalties may be imposed for nonpayment.
Only one service charge may be imposed for each dishonored check. The text is silent on how a rental office or a landlord with no office meets "displayed on the premises", so an owner who takes rent by mail or drop box should put the notice in the lease and the payment instructions and ask a Minnesota attorney whether that is enough.
What is owed after 30 days?
Subdivision 2(b) kicks in when the check is not paid within 30 days after the payee has mailed notice of dishonor under section 609.535 with a description of the penalties. The issuer is then liable for the amount of the check, the service charge, and a civil penalty of up to $100 or the value of the check, whichever is greater. The court weighs the check amount and the reason for nonpayment when it sets the penalty, and it cannot be imposed until 30 days after the notice mailing.
Also owed: interest at the judgment rate under section 549.09 on the face amount from the date of dishonor, and reasonable attorney fees if the issuer's dishonored checks to all payees within six months total over $1,250. Subdivision 3 requires the notice to cite section 604.113 and section 609.535 and describe the penalties, sent by certified mail with return receipt, or by regular mail with an affidavit of service kept by the payee.
Example a made-up owner in Duluth posted the service-charge notice in the lease office, then receives a $1,300 rent check that bounces. The owner may charge $30 right away. If the tenant does not pay 30 days after a proper notice of dishonor, the issuer owes $1,300 plus $30, plus a civil penalty up to the greater of $100 or the $1,300 check value (so up to $1,300), plus interest. Attorney fees are available only if the tenant's checks to all payees in six months exceed $1,250 in total, which a single large rent check can meet.
How does this sit with your lease?
Subdivision 2(c) says the subdivision prevails over any other law limiting or regulating service charges, but does not nullify charges for dishonored checks that stay within the $30 or terms the parties agreed to in an express contract. In plain terms, a lease fee at or below the paragraph (a) amount is on safe ground, and the sign requirement is the one extra step. A higher fee in the lease needs its own legal footing, so ask before you write one.
A short Minnesota routine
- Post the notice where rent is paid and repeat it in the lease.
- When a check returns, charge the one service charge of $30 or less.
- Mail the notice of dishonor with both statute citations and the penalty description, and keep proof.
- Hold a 30-day calendar entry from the mailing date.
- If you file, bring the notice, the proof of mailing and the bank's return slip.
How DoorKeeping fits in Minnesota
A bounced payment turns up in your bank feed and DoorKeeping matches it with the tenant's rent charge. A fee or notice is a money or legal step, so each one waits for your one-tap approval, and Rent and payments stay in your own bank accounts. These are general bad check statutes. Most do not name rent, so a tenant's rent check is covered only to the extent the text reaches it. This is general information, not legal advice. Check your lease and your own state's landlord-tenant act, and ask your own attorney before you demand money.
Sources
Questions
- What is the maximum service charge on a bounced check in Minnesota?
- $30 per dishonored check, and only if notice of the charge was conspicuously displayed on the premises when the check was issued.
- How long must a Minnesota payee wait before seeking the civil penalty?
- 30 days after mailing the notice of dishonor with a description of the penalties.
- Can a Minnesota landlord recover attorney fees on a bounced rent check?
- Yes, reasonable attorney fees, if the issuer's dishonored checks to all payees within a six-month period total over $1,250.