If you write a bad check in Michigan, you are subject to both penal and civil penalties. The civil penalties begin with a bad check notice. Section 600.2952 of Michigan Legislature outlines what this notice entails and your obligations under the law.
If you write, deliver or utter a check, order for payment of money or draft which the recipient refuses to honor for lack of funds or credit, or because you do not have an account with the drawee, you are guilty of procuring a dishonored check, order or draft. Michigan punishes this type of crime at both a criminal and civil level. If the payee or agent of the payee wishes to pursue civil penalties, the first thing he or she must do is draft a bad check notice. This notice demands payment of the amount of the check within seven days, excluding holidays and weekends, plus a $25 processing fee. If you pay the amount in full within the allotted time frame, the payee can pursue no further action.
Michigan law allows for a 23-day extension beyond the seven-day grace period. However, if you choose to take advantage of the 30-day repayment period, you must pay the full amount of the bad check plus $35 in processing fees.
If you fail to make good on your bad check within 30 days, you then become responsible for the full amount of the dishonored check plus civil damages. Civil damages total two times the amount of the dishonored check or $100, whichever is greater. You are also liable for a $250.00 court fee. However, if you make good on the check before the payee files an action with the court, you may be able to negotiate with the payee to reduce or eliminate the $250 court costs.
You should not use this article as legal advice. It is for educational purposes only.
