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    Procedure for Collecting Fees on Returned or Bounced Checks in Michigan

    Michigan law provides a special procedure for collecting bounced checks plus some penalties and costs.

    If you received a rubber check, the law permits you to send the below notice to the drafter by first class mail.

    If the check drafter makes good on the check within seven (7) days from date of mailing, then they should add a $25.00 fee, payable to you. If it is made good within thirty (30) days, the fee is $35.00. If the drafter or maker of the check does neither, then they are responsible for civil damages of up to twice the amount of the check, or $100, whichever is greater, plus costs of $250.

    Collection action can be started in the small claims court to get a judgment, including the above fees and costs.

    Sample Letter:

     

    DEMAND FOR PAYMENT

     

     

    TO: (Tenant’s Name and Address)

     

    PLEASE BE ADVISED that a check, draft or order for payment of money drawn by you for $_________ was returned to [NAME OF LANDLORD/COMPANY] dishonored for:

    [ ] Insufficient funds

    [ ] No account

    Pursuant to MCL 600.2952, this notice is a formal demand for payment of the full amount of the dishonored check, draft or order plus a processing fee of $25.00 for a total amount of $__________. If you pay this total amount within seven (7) days, excluding weekends and holidays, after the date this notice was mailed, no further civil action will be taken against you.

    If you do not pay the $________ as requested above, but within thirty (30) days after the date this notice was mailed you pay the amount of the dishonored check, draft, or order plus a $35.00 processing fee, for a total amount of $____________, no further civil action will be taken against you.

    If you fail to pay either amount indicated above, we will be authorized by state law to bring civil action against you to determine your legal responsibility for payment of the check, draft or order and civil damages and costs allowed by law. A maker who fails to make payment 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 check, draft or order;

    (b) Civil damages of 2 times the amount of the dishonored check, draft or order or $100.00, whichever is greater; and

    (c) Costs of $250.00

    If you dispute the dishonoring of this check, draft or order, you should also contact your bank or financial institution immediately
    Dated: __________________, ______

    [NAME OF LANDLORD/COMPANY]

     

     

    By: ________________________________

     

    Disclosure: This Knowledge Base article is accurate as of the last update. Laws and policies are subject to change. If you have any questions, please call the office. Click here for contact information.