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RETURNED CHECK FEE

QUESTION: To get reimbursed for bounced checks, does it have to be in the association's collection policy?

ANSWER: Sometimes owners write checks to the association that 'bounce.' They are also called NSF (non-sufficient funds) checks or bad checks. There does not appear to be any legal requirement that a fee imposed by associations for NSF checks be in their collection policies.

Boards have authority to impose fees to defray costs incurred by their associations. (Civ. Code §5600.) By statute, fees for NSF checks may not exceed $25 for the first check or $35 for each subsequent check. (Civ. Code §1719(a)(1).)

ASSISTANCE: Associations needing legal assistance can contact us. To stay current with issues affecting community associations, subscribe to the Davis-Stirling Newsletter.

Adams Stirling PLC