Michigan Notice of Bad Check or NSF Check - Civil Laws
This is a Notice of Bad Check or NSF Check - Civil. A "dishonored check" (also known as a "bounced check" or "bad check") is a Bad Check or NSF check which the bank will not pay because there is no such checking account, or there are insufficient funds in the account to pay the Bad Check or NSF check. In order to attempt the greatest possible recovery on a Bad Check or NSF check, the business owner, or any other person given a Bad Check or NSF check, may be required by state law to notify the debtor that the Bad Check or NSF check was dishonored.
Michigan Bad Check Law Summary - Michigan Notice of Bad Check or NSF Check - Civil Laws
Michigan Bad Check Law Summary
Notice of Bad Check or NSF Check
Note: This summary is not intended to be an all inclusive summary of the Michigan bad check laws, but does contain basic and other provisions.
Michigan Compiled Laws
CHAPTER 600 REVISED JUDICATURE ACT OF 1961
600.2952 Failure of maker to pay amount of dishonored bad check or NSF check,
draft, or order; liability; written demand for payment; delivery and text;
effect of payment before trial; jurisdiction of action.
Sec. 2952. (1) In addition to applicable penal sanctions, a person who makes,
draws, utters, or delivers a bad check or NSF check, draft, or order for payment
of money upon a bank or other depository, person, firm, or corporation that
refuses to honor the bad check or NSF check, draft, or order for lack of funds
or credit to pay or because the maker has no account with the drawee is liable
for the amount of the dishonored bad check or NSF check, draft, or order, plus a
processing fee, civil damages, and costs, as provided in this section.
(2) A payee or an agent of a payee may make a written demand for payment of a
bad check or NSF check, draft, or order of the type specified in subsection (1),
which demand may be delivered to the maker by first-class mail. The text of the
written demand shall be as follows:
... [ see, USLF form MI-401N ] ...
(3) The maker of a dishonored bad check or NSF check, draft, or order for
payment of money is liable to the payee as provided in subsection (4) if the
maker fails to pay 1 of the following in cash to the payee or a designated agent
of the payee after the mailing of a written demand for payment pursuant to
subsection (2):
(a) Within 7 days, excluding weekends and holidays, after the date the written
demand provided in subsection (2) is mailed, the full amount of the dishonored
bad check or NSF check, draft, or order, plus a processing fee of $25.00.
(b) Within 30 days after the date of the mailing of the notice provided in
subsection (2), the full amount of the dishonored bad check or NSF check, draft,
or order, plus a processing fee of $35.00.
(4) Except as otherwise provided in subsection (5), a maker who fails to make
payment pursuant to subsection (3) and who is found responsible for payment in a
civil action is liable to the payee for payment of all of the following:
(a) The full amount of the bad check or NSF check, draft, or order.
(b) Civil damages of 2 times the amount of the dishonored bad check or NSF
check, draft, or order or $100.00, whichever is greater.
(c) Costs of $250.00.
(5) Subsection (4) does not apply if, before the trial of an action brought
pursuant to this section, the maker pays to the payee or a designated agent of
the payee, in cash, the total of the amounts described in subsection (3)(b),
plus reasonable costs, not exceeding $250.00, as agreed to by the parties.
(6) An action under this section may be brought in the small claims division of
the district court, if it does not exceed the jurisdiction of the small claims
division, or in any other appropriate court. If the amount of the bad check or
NSF check exceeds the jurisdiction of the small claims division, the action may
still be brought in the small claims division, but the amount of damages awarded
shall not exceed the jurisdiction of the small claims division.