Being on the receiving end of a bad check can be an irritating experience.  Most people would probably rather have someone avoid paying them altogether than to deposit a check, only to have their bank return it for non-sufficient funds or non-existent account.  

Under Michigan law, the writer (or “maker”) of a bad check could find himself in serious trouble.  First, the law provides that the receiver (or “holder”) of the dishonored check has the right to sue the maker for three times the value of the check plus attorney fees and costs.  So, for example, if the maker gives the holder a check for $500.00 that then gets dishonored upon deposit, the holder can sue the maker for $1,500.00 plus all of his attorney fees and costs.  Before accruing that right, the holder must send the maker a specifically-worded demand letter and wait a certain period of time before filing suit.

But the trouble for the bad check writer does not stop there.  In Michigan, it is also a crime to write a bad check.  The penalties can range from 93 days in jail and a $500.00 fine for a first offense to over two years in jail and fines in the thousands of dollars for subsequent offenses.

So, check writers should be cautious.  They should avoid the temptation of writing the check in the first instance and then hoping it will clear.  If the money is not in the account, just tell the creditor outright, “I don’t have it right now.”  You may get sued for non-payment, but at least you won’t end up in jail and on the wrong end of a hefty civil judgment.  

— Kassem Dakhlallah is a partner with Jaafar & Mahdi Law Group, P.C.  His practice focuses on complex litigation including class actions, representative actions, commercial litigation, civil forfeiture and personal injury. He can be reached at 313. 846.6400 and kassem@jaafarandmahdi.com.