October 3, 2017, Introduced by Senator ZORN and referred to the Committee on Banking and Financial Institutions.
A bill to amend 1961 PA 236, entitled
"Revised judicature act of 1961,"
by amending section 2952 (MCL 600.2952), as amended by 1998 PA 313.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2952. (1) In addition to applicable penal sanctions, a
person who makes, draws, utters, or delivers a check, draft, or
order
for payment of money upon on
a bank or other depository , or
person ,
firm, or corporation that refuses
to honor the check,
draft, or order for lack of funds or credit to pay or because the
maker has no account with the drawee is liable for the amount of
the
dishonored check, draft, or order, plus any amount charged to
the payee by the payee's financial institution because of the
dishonored
check, draft, or order, a processing
fee, civil damages,
and costs, as provided in this section.
(2) A payee or an agent of a payee may make a written demand
for
payment of a check, draft, or order of the type specified
described
in subsection (1). ,
which The demand may be delivered to
the
maker by first-class mail. The text of the written demand shall
must be as follows:
"A check, draft, or order for payment of money drawn by you
for $__________ was returned to me/us/our client (client's name)
dishonored for:
[ ] Insufficient funds
[ ] No account
This notice is a formal demand for payment of the full amount
of
the dishonored check, draft, or order, plus $_______, which was
charged to me/us/our client by my/our/our client's financial
institution, and a processing fee of $25.00 for a total amount of
$__________. If you pay this total amount within 7 days, excluding
weekends and holidays, after the date this notice was mailed, no
further civil action will be taken against you.
If you do not pay the $__________ as requested above, but
within 30 days after the date this notice was mailed you pay the
amount
of the dishonored check, draft, or order, plus $_______,
which was charged to me/us/our client by my/our/our client's
financial institution, and a $35.00 processing fee, for a total
amount of $__________, no further civil action will be taken
against you.
If you fail to pay either amount indicated above, I/we/our
client will be authorized by state law to bring a civil action
against you to determine your legal responsibility for payment of
the
check, draft, or order and civil damages and costs allowed by
law.
If you dispute the dishonoring of this check, draft, or order,
you
should also contact your bank or financial institution
immediately.".
(3) The maker of a dishonored check, draft, or order for
payment of money is liable to the payee as provided in subsection
(4) if the maker fails to pay 1 of the following in cash to the
payee or a designated agent of the payee after the mailing of a
written
demand for payment pursuant to under
subsection (2):
(a) Within 7 days, excluding weekends and holidays, after the
date the written demand provided in subsection (2) is mailed, the
full
amount of the dishonored check, draft, or order, plus any
amount that was charged to the payee by the payee's financial
institution, and a processing fee of $25.00.
(b) Within 30 days after the date of the mailing of the notice
provided in subsection (2), the full amount of the dishonored
check,
draft, or order, plus any
amount that was charged to the
payee by the payee's financial institution, and a processing fee of
$35.00.
(4) Except as otherwise provided in subsection (5), a maker
who
fails to make payment pursuant to as described in subsection
(3) and who is found responsible for payment in a civil action is
liable to the payee for payment of all of the following:
(a) The full amount of the check, draft, or order.
(b) Any amount that was charged to the payee by the payee's
financial institution because of the check, draft, or order.
(c) (b)
Civil damages Damages of 2 times the amount of the
dishonored
check, draft, or order total
of the amounts under
subdivisions (a) and (b) or $100.00, whichever is greater.
(d) (c)
Costs of $250.00.
(5)
Subsection (4) does not apply if, before the trial of an
the
action, brought pursuant to
this section, the maker pays to the
payee or a designated agent of the payee, in cash, the total of the
amounts
described in subsection (3)(b) , plus and
reasonable costs,
not exceeding $250.00, as agreed to by the parties.
(6) An action under this section may be brought in the small
claims division of the district court, if it does not exceed the
jurisdiction of the small claims division, or in any other
appropriate court. If the amount of the check exceeds the
jurisdiction
of the small claims division, the action may still be
brought in the small claims division, but the amount of damages
awarded
shall must not exceed the jurisdiction of the small claims
division.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.