Bad Check Diversion Program

Bad Check Diversion Program


The Bad Check Diversion Program works because:
  • Bad Check reports are easy to file and follow-up action is prompt.
  • Upon recovery, 100% of the face value of the check is returned to the merchants, plus applicable bank charges.
  • No minimum dollar restriction.

Key Terms


  • Bad Check: A check that is not honored when presented at the bank. The bank may indicate that the check was dishonored due to "insufficient funds," "closed," or some other reason
  • 5-day notice: A formal letter that lists the appropriate Michigan statute governing checks and instructs the bad check writer to make immediate payment or face prosecution.
  • Complaint: The form that begins the formal criminal proceeding. It contains sections for relevant information about your business, the bad check writer, and the bad check.

Steps in the Process


Step 1


Present the check to your bank: Before the Economic Crimes Unit (ECU) considers a check for prosecution, the check must be deposited with your bank, even if you suspect the check will not clear.

Step 2


Send the 5-Day Notice Letter: Once the check returns as dishonored, you must use the notice form provided by the ECU and send the bad check writer a 5-day notice.

Step 3


Submitting Documents to the ECU: If the bad check writer does not respond within 10 days, completely fill out the complaint form provided by the ECU, attach photocopies of the dishonored check and notice letter sent, then mail or email all documents to the ECU. All of these documents must be submitted together in order for the ECU to proceed on your case. Documents submitted individually will not be accepted - they must be submitted in packet form.

Checks that are not accepted:
  • Checks that are not passed in Jackson County.
  • The identity of the check writer is unknown.
  • Checks that are pre- or post-dated, or where an agreement is made to hold the check for later payment.
  • Checks that are altered or suspected of being forgeries or counterfeit.
  • Two-party checks.
  • Payroll checks.
  • Stop-payment checks.
  • No amount, date, or signature on check.
  • Numeric and written amount on the check do not match.

Note


Checks that are ineligible for the ECU may still be eligible for collection by the merchant via small claims court or by a private collection agency.