New York Places Limits on Dishonored Check Fees for Rent Payments

On October 16, 2025, Governor Hochul signed into law a restriction on the fees that landlords can charge for rent checks that are dishonored by a bank.

Assembly Bill A56B (2025-2026 Regular Sessions) added new subsection 2-a to Section 238-a of the New York Real Property Law and revised Section 5-328(3) of the New York General Obligations Law. The statutes, when read together, state that if the collection of a dishonored check fee is provided for in a tenant’s initial lease, landlords are now limited in the amount that can be charged and collected for a dishonored rent check fee as the greater of the actual bank fees or the amount set forth in the General Obligations Law, which is currently $20.00.

This new law went into effect immediately, and shall apply to actions and proceedings commenced on or after the effective date.

The full Bill can be found here: https://legislation.nysenate.gov/pdf/bills/2025/A56B

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Reach out to your BBG attorney of record or contact us here to discuss how these updates may apply to your specific situation.

Written by: Diana R. Strasburg, Partner, Administrative Law Department.