Friday, January 22, 2010

The Bad Check Letter

Michigan law provides an enhanced civil remedy if a business or individual receives a bad check. MCLA 600.2952 allows the recovery of treble (triple) damages if a two-step process is followed. Upon receiving a bad check, the client must send a letter containing the specific language from the statute. A link to the statute is found in the Links section of my website, If payment on the check is not made within 30 days, then the client is entitled to a judgment for (1) the full amount of the check, draft, (2) damages equal to 2 times the amount of the check or $100.00, whichever is greater, and (3) costs of $250. The statute provides this remedy unless the amount of the check plus costs up to $250 is paid in “cash” before trial of the matter.