Michigan Collections Manager License Practice Test

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Prepare for the Michigan Collections Manager License Test with flashcards and multiple choice questions. Each question is equipped with hints and detailed explanations to enhance your understanding and readiness.

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What additional fee is the issuer of a bad check liable for?

Service fee of $75
Processing fee of $150
Costs not exceeding $250
Late fee of $100

The correct answer is: Costs not exceeding $250

When an issuer of a bad check is identified, they can be held liable for additional fees that are instituted to cover the costs associated with the processing of that bad check. In Michigan, the law states that the total liabilities can include specific costs incurred by the bank or entity due to the bounced check. This can amount to a maximum of $250 as compensation for administrative handling and related issues stemming from the bad check, making the selection of this answer appropriate. The other options mention fees that either exceed the allowable amount set by legislation or refer to fees that may not apply directly to the situation regarding bad checks as defined by Michigan law. Hence, the correct answer correctly reflects the legal limits for additional fees that an issuer can face when their check bounces.