How to Send a Letter of Demand for NSF in Michigan

"Bad" checks are also known as NSF checks, for "No Sufficient Funds." In Michigan, writing a bad check can result in civil penalties of up to twice the check amount (not to exceed $500) or even criminal charges, punishable by a year's imprisonment if the amount is over $200, or 90 days in jail if less. Whether you are a business or an individual, you can pursue civil or criminal penalties to collect on or prosecute the writer of the check, as long as you follow certain procedures. The statute of limitations is six years.

• 1

  Call the check writer, if possible. Notify her of the bad check and request payment. Keep a record of call attempts (dates and times) and any conversation that occurs. Use this information to support either a civil or criminal action.

• 2

  Obtain a letter of demand, called either a "Five-Day Notice" or a "Ten-Day Notice" depending on the local government's requirements. Print a sample letter, located in "Resources," or draft your own. Be careful to avoid abusive or threatening language. The form letter states that the person can avoid further action if he makes good on the check; it does not state that nonpayment will result in prosecution or civil suit, which could be construed as threatening language.

• 3

  Mail the letter of demand by certified mail with restricted delivery and return-receipt requested. Keep a photocopy of the letter for your records.

• 4

  Receive the receipt once the demand letter is delivered, or the returned letter of demand if the check writer refuses to accept the letter. Add the receipt or the returned letter, in its envelope, to your files.

• 5

  Accept payment by the check passer, if offered. If the check writer doesn't make payment within the specified five or 10 days, take the documentation you have collected, including the original check and bank notice of the check's bouncing, to the local prosecutor's office. File a criminal complaint, if desired, and if the prosecutor's office allows prosecution. You can also sue in civil court, or turn the account over to a collection agency.