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 is the maximum amount of civil damages a person can face for writing a bad check?

$100
$250
$500
$200

The correct answer is: $250

In Michigan, when a check is returned for insufficient funds or if the account does not exist, a person can be held liable for civil damages. The law allows the payee to recover specific damages that include the amount of the check, plus an additional penalty. The maximum civil damages amount set by law for writing a bad check is $250. This is intended to serve as a deterrent against the practice of writing checks without sufficient funds and to compensate the payee for the inconvenience and any potential penalties they may incur as a result of the bounced check. The various other amounts provided do not reflect the legal maximum established in Michigan’s legislation regarding bad checks.