Michigan Notice of Dishonored Check

Michigan Notice of Dishonored Check Overview

Michigan is one of a smaller group of states that awards double damages rather than treble damages on a dishonored check. The controlling statute, Mich. Comp. Laws § 600.2952, sits within the Revised Judicature Act and creates a self-contained civil remedy that runs parallel to -- and entirely separate from -- Michigan's criminal bad-check provisions in MCL 750.131 and 750.131a. A payee who follows the civil procedure correctly can recover twice the check amount or $100, whichever is greater, plus up to $250 in additional costs, without setting foot in a prosecutor's office.

The civil pathway in Michigan is straightforward but does require a formal written demand before you can access the enhanced damages. A payee who simply deposits a returned check, waits for the bank to confirm the dishonor, and then files suit the next week will find the civil penalty off the table. The statute conditions every dollar of enhanced recovery on a demand letter sent to the maker by first-class mail, followed by a 30-day waiting period during which the maker has a final chance to pay without a civil judgment.

Michigan also builds a tiered cure window into the statute. A maker who pays within 7 days of the mailing owes only the face amount plus a $25 processing fee. One who waits between 7 and 30 days owes the face amount plus a $35 processing fee. Only the maker who lets the full 30 days pass without payment -- and who is then found responsible in a civil action -- faces the double-damage penalty. That structure is worth understanding before you file, because a check that is paid late but paid within the notice window does not generate double damages.

The Controlling Statute: Mich. Comp. Laws § 600.2952

Mich. Comp. Laws § 600.2952 authorizes any payee -- or the payee's agent -- to make a written demand for payment of a dishonored check, draft, or order. The statute covers checks returned for any reason within its scope: insufficient funds and closed-account returns are both covered. The demand may be delivered by first-class mail, which sets Michigan apart from states that require certified or registered mail. Because first-class mail with a certificate of mailing is sufficient, there is no certified-mail return-receipt issue; but the practical consequence is that you must retain your mailing receipt and any other evidence of dispatch, since you cannot rely on a green card or tracking confirmation.

Subsection (3) creates the tiered payment structure. If the maker pays within 7 days of the mailing, liability is limited to the check face plus a $25 processing fee. If the maker pays between day 7 and day 30, the processing fee rises to $35. These are cure payments the maker can make directly to the payee without any court involvement. Accepting a cure payment within the 30-day window satisfies the obligation and closes the civil claim for the check.

Subsection (4) sets out the civil-action damages for a maker who fails to pay within 30 days. In a civil action under the statute, a court finding the maker responsible triggers liability for two times the check amount or $100, whichever is greater, plus up to $250 in costs. The costs provision is a separate line item: it is not part of the double-damage calculation but an additional recovery the court may award on top of it. On a $50 check, the minimum recovery if the maker loses at trial would be $100 in damages plus up to $250 in costs, for a maximum of $350 -- a recovery substantially larger than the face amount.

Subsection (4) also includes a safe harbor: if the maker pays the payee, before trial, the amounts specified in subsection (3)(b) -- meaning the check face plus the $35 processing fee -- plus reasonable costs not exceeding $250 as agreed by the parties, the double-damage penalty does not apply. This means even after the 30-day window closes and a civil action is filed, the maker still has a window to settle and avoid the multiplied judgment, as long as the payment happens before the case goes to trial. Payees who receive a pre-trial settlement offer at the full statutory cure amount plus agreed costs should evaluate whether accepting that payment, or pressing forward for double damages plus a cost award from the court, produces the better net outcome.

What You Can Recover in Michigan

Under MCL 600.2952(4), the damages formula on a successful civil action is two times the amount of the dishonored check, or $100, whichever is greater. On a $200 check, the double-damage award would be $400. On a $45 check, the $100 floor applies, so the award would be $100 in damages -- more than double the face amount -- plus up to $250 in costs. That floor makes the civil remedy meaningful even on small-dollar checks where the face amount alone would not justify filing fees.

The $250 cost award is separate from the damage multiplier and is within the court's discretion. Courts in Michigan's district court small claims division regularly hear civil bad-check cases, and the combination of double damages plus costs can make even a modest-sized bounced check worth pursuing. Michigan's small claims dollar ceiling is $7,000 under MCL 600.8401 (raised from $6,500 by Public Act 60), which covers the large majority of dishonored-check situations. Claims within that threshold can be filed without an attorney and with tiered filing fees starting at $30.

Michigan's statute does not expressly provide for attorney fees as a separate award, unlike California, Florida, or Oregon, which explicitly authorize fee-shifting in successful bad-check actions. If your check is large enough that the attorney time to pursue it is material, factor in that fees will not be recoverable beyond the $250 costs cap. On checks of a few thousand dollars, the double-damage recovery plus costs can still make the civil action worthwhile, particularly in small claims court where the process is designed for self-represented plaintiffs.

• Civil damages: 2x check amount or $100, whichever is greater
• Service charge: Up to $35 processing fee
• Notice period before suit: 30 days after mailing of notice

Notice Procedure and Timeline in Michigan

The notice procedure under MCL 600.2952 begins with a written demand delivered to the maker by first-class mail. The statute does not prescribe a specific form for the demand, but the demand must be sufficient to put the maker on notice that the check was dishonored and that payment is required. As a practical matter, the letter should identify the check by number, date, amount, and drawee bank; state the reason for dishonor as shown on the bank's return notice; specify the total amount the maker must pay to cure within 7 days ($25 processing fee) and within 30 days ($35 processing fee); and make clear that failure to pay within 30 days will result in a civil action seeking double damages plus costs.

The 30-day clock runs from the date of mailing, not from the date the maker actually receives the letter. Mail the notice to the address printed on the check. If you know the maker's current address and it differs from what appears on the check, using the current address is reasonable, but document why you chose that address. Retain a certificate of mailing from the post office, dated the day you send the letter -- that certificate is your proof of the start date for the notice period. Because Michigan allows first-class mail rather than requiring certified mail, an unclaimed certified-mail envelope cannot arise here, but you also lose the return-receipt confirmation of delivery. The certificate of mailing fills that evidentiary gap.

Count the 30 days from the postmark date and note the resulting calendar deadline in the letter itself. If day 30 falls on a weekend or a state holiday in Michigan, move the deadline to the next business day. Do not file suit before the 30-day window fully expires; a premature filing eliminates the double-damage claim. Once the period runs without payment, you may proceed to the district court. Bring the returned check (or a clear copy), the bank's dishonor notice, the demand letter, and the certificate of mailing. Those four documents establish every element the statute requires: dishonor, written demand, mailing to the maker, and expiration of the cure period without payment.

Michigan-Specific Notes

Michigan's criminal bad-check statutes, MCL 750.131 and 750.131a, operate on a separate track from the civil remedy and have their own threshold structure. Under MCL 750.131, a check written with intent to defraud for less than $100 is a misdemeanor punishable by up to 93 days in jail. A check between $100 and $500 carries up to one year in jail and a fine of up to $1,000 or three times the check amount, whichever is greater. A check of $500 or more is a felony punishable by up to two years and a fine of $2,000 or three times the check amount. MCL 750.131a separately addresses a pattern of dishonored checks: drawing three or more bad checks within 10 days with intent to defraud is a felony regardless of individual amounts. Many county prosecutor offices in Michigan maintain diversion programs for first-time bad-check offenders -- these programs typically require restitution plus a program fee and, if completed, avoid a criminal conviction. Sending the civil demand letter first documents the element of notice that prosecutors often require before accepting a referral.

Michigan's statute does not expressly list stop-payment checks as covered or excluded. The general rule in Michigan courts has been to analyze stop-payment situations under ordinary contract and fraud principles rather than the civil bad-check statute, particularly where the maker stopped payment because of a good-faith dispute over the underlying goods or services. If the check was stopped without a legitimate reason -- for instance, to avoid paying for goods already accepted -- the payee may argue the stop was fraudulent and that the civil statute applies, but this is a less settled area than an NSF or closed-account return. Consult the current enrolled text of § 600.2952 and any recent Michigan Court of Appeals decisions on stop-payment coverage before sending a statutory demand in that scenario.

The tiered processing-fee structure in MCL 600.2952(3) is sometimes misunderstood. The $25 fee (payable within 7 days) and the $35 fee (payable within 30 days) are separate from the double-damage civil penalty. A maker who pays the face amount plus the appropriate processing fee within the window avoids the civil penalty entirely. A payee who accepts only the face amount and refuses the processing fee may inadvertently complicate the claim, because the statute describes the full cure amount as the check face plus the processing fee. Demand both components when you draft the notice letter and specify the cure amounts by dollar amount, not just by statutory reference.

Michigan Bad Check FAQ

Other State Bad Check Laws

Each state sets its own notice period, damage formula, and service charge. Browse sibling state pages for the specific rules that apply to your situation, or return to the full 50-state guide.