# Can my landlord charge me late fees if my bank app crashed during my rent payment?

- Jurisdiction: United States
- Practice area: Tenancy Law
- Published: 2026-11-05
- Last updated: 2026-11-05
- Canonical: https://lawasked.com/us/tenancy-law/can-my-landlord-charge-me-late-fees-if

## Question

I live in Ohio and I am having a major issue with my landlord regarding my rent payment for this month. On the 1st of the month, I tried to send my full rent of $1,450 through a direct electronic transfer, which is the method my landlord explicitly agreed to use in our lease agreement. However, halfway through the process, my banking app had a major system malfunction and the entire transaction failed to go through. I immediately called my bank, and they confirmed it was a technical error on their end that prevented the funds from being sent to the landlord. I sent an email to my landlord right away explaining the situation and showing them the error message from my bank. Even though I tried to fix it immediately, the landlord is now threatening to charge me a $75 late fee because the money didn't hit their account by the 5th. I have already tried talking to them in person, but they said they don't care about technical glitches and want the money or the penalty now. Since the bank error is what stopped the payment, am I still legally required to pay the rent on time and the late fee, or is my obligation to pay suspended until the bank fixes their system?

## Summary

Yes, your obligation to pay the rent is likely suspended because of the bank error. Under federal law, if a system malfunction prevents an electronic transfer that your landlord agreed to accept, you are not required to pay until the malfunction is fixed.

## Analysis

Because your landlord explicitly agreed to accept rent via direct electronic transfer in your lease, you are protected by federal law regarding technical failures. 

According to the law, "If a system malfunction prevents the effectuation of an electronic fund transfer initiated by a consumer to another person, and such other person has agreed to accept payment by such means, the consumer’s obligation to the other person shall be suspended until the malfunction is corrected and the electronic fund transfer may be completed" [1]. This means that since your bank app's system malfunction prevented the $1,450 transfer on the 1st, your legal duty to pay that rent is paused. This pause lasts until the technical error is fixed and the transfer can finally go through, unless your landlord sends you a written request demanding a different payment method [1].

Regarding the $75 late fee, the law states that penalties for delinquency "may be specified in the lease but only at an amount which is reasonable in the light of the anticipated or actual harm caused by the delinquency" [2]. Since your failure to pay was caused by a technical glitch rather than a refusal to pay, you may have a strong argument that the landlord cannot enforce a penalty for a delay that was legally suspended. 

However, the law is unsettled regarding whether a landlord can charge a fee for the 'inconvenience' of a technical error. While your obligation to pay the principal rent is suspended, the landlord might argue that the late fee is a separate contractual penalty. You should also note that state, provincial or local law may add further rules regarding landlord-tenant relations and late fees, so you should check Ohio's specific tenant rights.

## Statutory citations

- Consumer Credit Protection Act (Truth in Lending, Fair Credit Reporting, Fair Debt Collection), 15 U.S.C. § 1693j - Suspension of obligations [in force] (https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section1693j)
  > If a system malfunction prevents the effectuation of an electronic fund transfer initiated by a consumer to another person, and such other person has agreed to accept payment by such means, the consumer’s obligation to the other person shall be suspended until the malfunction is corrected and the electronic fund transfer may be completed
- Consumer Credit Protection Act (Truth in Lending, Fair Credit Reporting, Fair Debt Collection), 15 U.S.C. § 1667b - Lessee’s liability on expiration or termination of lease [in force] (https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section1667b)
  > Penalties or other charges for delinquency, default, or early termination may be specified in the lease but only at an amount which is reasonable in the light of the anticipated or actual harm caused by the delinquency

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