§ 8.01-27.1.Additional recovery in certain civil actions concerning checks or rejected electronic funds transfers.
Chapter 3. Actions · Article 2. Actions on Contracts Generally · Last amended 2013 · Last verified July 16, 2026
In one sentenceSection 8.01-27.1 lets the holder of a bounced check collect more than the check’s face value from the drawer, caps how much a holder can charge before facing a penalty for overcharging, and extends the same framework to rejected electronic funds transfers.
A.Except as otherwise provided in Chapter 12 (§ 55.1-1200 et seq.) or Chapter 14 (§ 55.1-1400 et seq.) of Title 55.1, in any civil claim or action made or brought against the drawer of a check, draft or order, payment of which
has been refused by the drawee depository because of lack of funds in or credit with such drawee depository, or because such check, draft or order was returned because of a stop-payment order placed in bad faith on the check, draft or order by the drawer, the holder or his agent shall be entitled to claim, in addition to the face amount of the check (i) legal interest from the date of the check, (ii) the protest or bad check return fee, if any, charged to the holder by his bank or other depository, (iii) a processing charge of $50, and (iv) reasonable attorney's fees if awarded by the court.
B.Except as otherwise provided in Chapter 12 (§ 55.1-1200 et seq.) or Chapter 14 (§ 55.1-1400 et seq.) of Title 55.1, any holder of a check, draft or order, payment of which has been refused by the drawee for insufficient funds or credit or because of a stop-payment order placed in bad faith, who charges the drawer amounts in excess of those authorized in subsection A on account of payment being so refused shall, upon demand, be liable to the drawer for the lesser of (i) $50 plus the excess of the authorized amount or (ii) twice the amount charged in excess of the authorized amount.
C.If an electronic funds transfer has been rejected because of insufficient funds or a stop-payment order has been placed in bad faith by the authorizing party, the authorizing party and the payee shall have the same rights and remedies as if the drawer had issued a bad check under subsection B. For purposes of this subsection, "electronic funds transfer" has the same meaning as provided in 15 U.S.C. § 1693(a).
Plain-English Summary
Section 8.01-27.1 gives the holder of a check, draft, or order more to recover than its face value when the drawer’s bank refuses to pay it. Subsection A applies when a check bounces for lack of funds or credit, or because the drawer placed a stop-payment order in bad faith — subject to exceptions built into two chapters of Title 55.1 covering rent payments. In that situation, the holder may claim, on top of the check’s face amount, legal interest running from the date of the check, any protest or bad-check return fee the holder’s own bank charged, a $50 processing charge, and reasonable attorney’s fees if the court awards them.
Subsection B protects the drawer from a holder who overreaches. If a holder charges the drawer more than subsection A authorizes, the drawer may demand from the holder whichever amount is less: $50 plus the excess above the authorized amount, or twice the amount charged in excess.
Subsection C carries the same protections into electronic payments. When an authorizing party’s electronic funds transfer is rejected for insufficient funds, or canceled through a bad-faith stop-payment order, the authorizing party and the payee receive the same rights and remedies the statute provides for a bad check. The section borrows its definition of “electronic funds transfer” directly from federal law.
Frequently Asked Questions
What can a check holder recover beyond the face amount of a bounced check?
Legal interest from the date of the check, any protest or bad-check return fee the holder’s bank charged, a $50 processing charge, and reasonable attorney’s fees if the court awards them.
Does Section 8.01-27.1 apply to every returned check?
No. It applies when a check is refused for lack of funds or credit, or returned because of a bad-faith stop-payment order, and it carves out exceptions for certain rent-payment claims governed by Title 55.1.
What happens if a holder tries to charge a drawer more than this section allows?
The holder becomes liable to the drawer, on demand, for the lesser of $50 plus the excess charged or twice the amount charged above what subsection A authorizes.
Are attorney’s fees guaranteed to a check holder under this section?
No. The statute allows a holder to claim reasonable attorney’s fees only “if awarded by the court” — recovery is not automatic.
Does this section cover rejected electronic funds transfers, not just paper checks?
Yes. Subsection C extends the same rights and remedies to an electronic funds transfer rejected for insufficient funds or canceled by a bad-faith stop-payment order.
Amendment History
1981, c. 230; 1992, c. 238; 1996, c. 334; 2003, c. 233; 2008, c. 489; 2009, c. 182; 2013, c. 63.
Source & verification. Section text and amendment history are
reproduced verbatim from the Code of Virginia, published by the
Code of Virginia, Virginia Division of Legislative Automated Systems. Last verified July 16, 2026.
· Official source
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