Being charged a dishonoured payment fee after a bounced cheque or a returned e-transfer can be stressful for renters. This guide explains what Yukon tenants should know about these fees, when they are allowed, and what steps you can take if you believe a fee is unfair or excessive. We cover practical tenant-focused actions — how to document the issue, communicate with your landlord, find and complete the right forms, and where to get official help in Yukon. If you pay rent by cheque, e-transfer or pre-authorized payment, understanding your rights can prevent misunderstandings and protect your record as a renter.
What are dishonoured payment fees?
Dishonoured payment fees are charges some landlords apply when a tenant's payment is returned by the bank or payment provider. These can arise from a bounced cheque, a rejected pre-authorized debit, or an e-transfer that fails. In Yukon, such fees must be reasonable and based on actual costs rather than used as a penalty. Tenants should ask for a written breakdown if a landlord charges a fee and keep all banking or confirmation messages as evidence.
When can a landlord charge a returned-payment fee?
- When the landlord has documented actual bank or processing costs related to the returned payment.
- When the lease or a written rental agreement contains a clear clause about returned-payment fees and the fee amount is reasonable.
- When the landlord can provide records showing the payment attempt and the bank or provider refusal.
- Not if the fee is punitive, arbitrary, or significantly higher than the actual bank cost.
How much is reasonable?
There is no single dollar cap listed here, but reasonable means the fee reflects the landlord's actual cost to process the returned payment (for example, a bank charge). If the amount looks excessive, request documentation and compare it to any stated fee in your rental agreement.
What to do if you are charged a dishonoured payment fee
Follow these tenant-focused steps to resolve the issue and protect your rights:
- Document the returned payment (bank notices, e-transfer error messages, or screenshots) and keep copies of any communication with the landlord.
- Contact your landlord immediately to explain the situation and ask for an itemized statement of the fee and the bank notice.
- If the landlord provided a written notice or fee claim, respond in writing requesting justification and, if applicable, a correction to your rental record.
- If you cannot resolve the dispute, you can apply for dispute resolution with the Residential Tenancies Office in Yukon [1] or follow the complaint form instructions under Yukon legislation [2].
When to involve the Residential Tenancies Office
If the landlord insists on a fee you believe is unfair or refuses to provide supporting documents, consider applying to the Residential Tenancies Office for a resolution. You will typically be asked to show your evidence, the lease clause (if any), and the communication trail. Using the official application process helps preserve timelines and shows you followed the correct steps.
Related tenant resources
For guidance on rent timing and payment methods, see Tenant''s Guide to Paying Rent: Rights, Responsibilities, and Tips. If your concern touches on security deposits or deductions, review Understanding Rental Deposits: What Tenants Need to Know. You can also search for alternative rental options if you are considering a move: Find rental homes across Canada on Houseme.
FAQ
- Can my landlord charge a fee if my payment bounces?
- Yes, but in Yukon the fee must be reasonable and tied to actual costs. Ask for documentation and compare any fee to what your lease allows.
- How do I challenge a dishonoured payment fee?
- Start by gathering evidence, contacting the landlord in writing, and requesting an itemized explanation. If unresolved, apply for dispute resolution with the Residential Tenancies Office [1].
- What forms do I need to make a complaint?
- You will usually need the Residential Tenancies Office application or complaint form and copies of payment records, notices, and your lease. The exact form is available from the official Yukon site [3].
How-To
- Gather evidence: save bank notices, e-transfer error messages, rent receipts and any written communication with the landlord.
- Contact your landlord: explain the issue clearly, ask for an itemized fee breakdown, and keep a written copy of your request.
- Send a formal written request: if the landlord does not respond or provides inadequate proof, send a dated written request asking for removal or justification of the fee.
- Apply for dispute resolution: if the matter remains unresolved, submit the official application to the Residential Tenancies Office with your evidence [1].
Key Takeaways
- Tenants should keep clear records of all payments and communications to dispute any unfair fees.
- Dishonoured payment fees must be reasonable and based on actual costs in Yukon.
- If you cannot resolve the issue directly, use the Residential Tenancies Office application process.
Help and Support / Resources
- Residential Tenancies Office - dispute resolution and forms
- Residential Landlord and Tenant legislation — Government of Yukon
- Renting residential property — Government of Yukon
