Civil Remedies for a Bad Check
Under Michigan Law, there are specific civil remedies for individuals and businesses that have received a bad check due to insufficient funds or because of a non-existent account. Please see the demand letter template below for civil remedies pursuant to MCL 600.2952. By completing the demand letter to its full entirety, you are then able to send the demand to the individual who wrote and provided you with the bad check. The letter affords the individual seven (7) days, excluding holidays and weekends, to pay the full amount of the dishonored check with an additional processing fee of $25.00. Moreover, demand also affords the individual up to thirty (30) days to pay the full amount of the dishonored check with an additional processing fee of $35.00.
If the individual does not comply with either of these dates (7 days or 30 days), there are additional remedies that you are able to proceed with, which are indicated below (MCL 600.2951(4)). If the maker of the bad check is found responsible for the payment in a civil action, the individual who wrote the bad check is liable for the following:
- The full amount of the check, draft, or order;
- Civil damages of 2 times the amount of the dishonored check, draft, or order or $100.00, whichever is greater; and
- Costs of $250.00.
If you or someone you know has received a bad check, the attorneys at the Demorest Law Firm, PLLC may be able to help.
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Demand Letter Template
A check, draft or order for payment of money drawn by you for $_________ was returned to [CLIENT’S NAME] 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.
By: ________________________________
