Legal Question in Banking Law in California

Bad check after closing the account

What is the name of your state (only U.S. law)? CA

I received my security deposit check in August and cashed it in November, only to find out that the account of my landlord was closed. He claims that he closed his account due to fraud. So I was charged a lot of over-draft fees and my bank only reversed some of the fees. I asked my landlord to give me the security deposit check plus the over-draft fees and he refuses to pay the over-draft fees because he believes that it was my fault to cash the check so late. Also, I was supposed to receive my security deposit in June but my landlord claims that he mailed the first check but I never received it. So the August check was a very late check. So I was wondering if he is responsible to pay the over-draft fees because he should have notified me before closing his account?What is the name of your state (only U.S. law)?


Asked on 11/17/08, 3:30 am

2 Answers from Attorneys
Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

Re: Bad check after closing the account

Google [california bad check law].

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Answered on 11/17/08, 3:35 am
Bryan C. Becker Your Lawyer for Life.

Re: Bad check after closing the account

You do have a remedy under California bad check law; but also, at this point he has not provided you with the security deposit within the 21 days as required. You might want to gently remind him that if you prove to a court that the landlord acted in "bad faith" in refusing to return your security deposit, the court can order the landlord to pay you the amount of the improperly withheld deposit, plus up to twice the amount of the security deposit as a "bad faith" penalty. The court can award a bad faith penalty in addition to actual damages whenever the facts of the case warrant - even if the tenant has not requested the penalty.

Whether you can collect attorney's fees if you win such a suit depends on whether the lease or rental agreement contains an attorney's fee clause. If the lease or rental agreement contains an attorney's fee clause, you can claim attorney's fees as part of the judgment, even if the clause states that only the landlord can collect attorney's fees. However, you can only collect attorney's fees if you were represented by an attorney.

Take a look here for more information:http://www.dca.ca.gov/publications/landlordbook/sec-deposit.shtml

Feel free to contact me if you have any other questions.

Yours truly,

Bryan

877.201.8728

619.400.4929

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Answered on 11/17/08, 2:06 pm


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