Michigan bounced rent checks: $25 or $35 fee, then double damages
Michigan's dishonored check law, MCL 600.2952, runs on a written demand sent by first-class mail. The drawer who pays within 7 days (weekends and holidays excluded) owes the check plus a $25 fee; within 30 days, the check plus $35. If neither happens and the payee wins in court, the drawer owes the check, damages of twice the amount or $100 (whichever is greater) and $250 in costs.
What does the Michigan demand letter have to say?
Subsection (2) says a payee or the payee's agent may make a written demand for payment of a check that bounced for insufficient funds or no account, and that the demand may go by first-class mail. Then it sets the words. The demand must read as the statute prints it, with blanks for the amount, the payee and the reason the check came back.
The printed text promises two pay-by dates. Pay within 7 days after mailing, excluding weekends and holidays, and the total is the check plus a $25.00 processing fee. Pay later, but within 30 days after mailing, and the total is the check plus a $35.00 processing fee. It also tells the reader that if neither amount arrives the payee may sue, and that someone who disputes the dishonor should call the bank right away.
What can a Michigan court award?
Subsection (4) applies to a maker who fails to pay under subsection (3) and is found responsible in a civil action. The maker is liable for three things: the full amount of the check, civil damages of 2 times the amount of the dishonored check or $100, whichever is greater, and costs of $250.
Subsection (5) offers an exit. If, before trial, the maker pays the payee in cash the total from subsection (3)(b), the check plus the $35 fee, plus reasonable costs not exceeding $250 as the parties agree, then subsection (4) does not apply. Subsection (6) allows the action in the small claims division of the district court when the amount fits, and says damages in that division cannot exceed its jurisdiction.
Example a made-up owner in Grand Rapids has a $1,200 rent check returned and mails the statutory demand on October 1. Paying within 7 days (not counting weekends and holidays) costs the tenant $1,225. Paying later but within 30 days costs $1,235. If neither happens and the owner wins, the tenant owes $1,200 plus damages of $2,400 (twice the check, which beats $100) plus $250 in costs, or $3,850.
Does this replace Michigan's rent nonpayment process?
No. This statute is a money claim on a dishonored instrument. It does not end a tenancy or return the home to you. A returned rent check usually means the rent is still unpaid, and ending the lease for nonpayment follows other Michigan rules that this post does not cover. Many owners run the two tracks side by side: a demand for the bad check money, and the notice process for the unpaid month.
Mixing them is where mistakes happen. A bad-check demand that also threatens to end the lease can confuse the tenant about which deadline matters.
A tidy way to run it
- Keep the bank's return slip with the date and reason (insufficient funds or no account).
- Mail the demand letter in the statute's wording by first-class mail and note the mailing date.
- Count the 7 days without weekends and holidays, then the 30 days, and put both dates in a calendar.
- Take cash, a cashier's check or a cleared transfer when the tenant pays, and note the date.
- If you file, check whether the small claims division fits the amount.
How DoorKeeping fits in Michigan
A returned payment shows in your bank feed and DoorKeeping matches it to the tenant's rent charge, so you see what is open. A demand or a fee is a money and legal step that waits for your one-tap approval. Rent and payments stay in your own bank accounts. These are general bad check statutes. Most do not name rent, so a tenant's rent check is covered only to the extent the text reaches it. This is general information, not legal advice. Check your lease and your own state's landlord-tenant act, and ask your own attorney before you demand money.
Sources
Questions
- What fee can a Michigan landlord charge on a bounced check?
- $25 if the maker pays within 7 days after the written demand is mailed (weekends and holidays excluded), or $35 if paid within 30 days, under MCL 600.2952(3).
- How much can a Michigan court award on a bounced rent check?
- The check amount, damages of twice the check or $100 (whichever is greater) and $250 in costs, under MCL 600.2952(4).
- Can a Michigan bounced check case go to small claims court?
- Yes, when the amount fits. Subsection (6) allows it in the small claims division of the district court, with damages limited to that division's jurisdiction.