Cal. Civ. Code § 170-15-1-4
"Insufficient funds fee" defined
Operative Text
Sec. 4. (a) "Insufficient funds fee" means the fee: (1) a landlord charges a tenant; or (2) an association charges a member or co-owner; to process insufficient funds of a payment. (b) An insufficient funds fee shall not exceed the actual fee assessed to a landlord or an association by a financial institution resulting from insufficient funds of an instrument received from a: (1) tenant; (2) member; or (3) co-owner; in payment of charges for water or sewage disposal service.
Indiana regulation 170 IAC 15 § 170-15-1-4 defines an 'insufficient funds fee' as the charge a landlord or housing association passes on to a tenant, member, or co-owner when a payment instrument—such as a check—is returned due to insufficient funds. Critically, this fee is capped: it cannot exceed the actual fee that the landlord or association itself was charged by its financial institution as a result of the returned payment. In other words, the rule prohibits any markup or profit on bounced-payment fees related to water or sewage disposal service charges.
Plain English — not legal advice.
Under 170 IAC 15 § 170-15-1-4, compliant landlords and associations document the exact fee their bank or financial institution charges them whenever a tenant's or member's payment is returned for insufficient funds. They pass through only that documented amount—no more—when billing the tenant or co-owner for the returned-payment fee on water or sewage disposal charges. Keeping bank statements or fee notices on file is a common practice that supports compliance with this pass-through cap.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Section 170-15-1-4 of 170 IAC 15 gives tenants a clear protection: a landlord may only charge an insufficient funds fee equal to what the landlord's own bank actually charged for the returned payment, with no added markup. If a tenant believes they have been charged more than that bank-assessed amount for a bounced payment related to water or sewage service, they may consider requesting documentation of the landlord's actual bank fee, raising the overcharge as a defense in any related proceeding, or contacting a local tenant-rights organization for guidance on available remedies.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 15, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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