Michigan § 445.1856 - Regulated lender; authority to charge fee for late payment or dishonored check; fee or charge not considered as interest; excessive fee or charge.
Full text of Michigan Michigan Compiled Laws § 445.1856 — Regulated lender; authority to charge fee for late payment or dishonored check; fee or charge not considered as interest; excessive fee or charge., with citation guidance and answers to common questions.
§ 445.1856. Regulated lender; authority to charge fee for late payment or dishonored check; fee or charge not considered as interest; excessive fee or charge.
Except for depository institutions and as otherwise provided by law, a regulated lender may do any of the following:
Require the borrower to pay a processing fee in connection with making, closing, disbursing, extending, readjusting, or renewing an extension of credit. The processing fee allowed under this subdivision shall not exceed 2% of the amount of the extension of credit.
Charge the borrower a late fee for an installment payment that is received by the regulated lender after the expiration of an agreed-upon grace period following the date on which the payment was due.
A late fee allowed by this subdivision shall not exceed $15.00 or 5% of the installment payment, whichever is greater.
A regulated lender may charge a fee not to exceed $25.00 for a check or other payment instrument that is dishonored because of insufficient funds in the account on which the check or instrument is drawn.
A fee or charge allowed by this section is not considered interest.
A regulated lender shall not require a borrower or buyer to pay an excessive fee or charge.
Source: official Michigan text · Last verified 2026-08-27
Frequently Asked Questions About Michigan § 445.1856
What does Michigan Compiled Laws § 445.1856 cover?
Section 445.1856 ("Regulated lender; authority to charge fee for late payment or dishonored check; fee or charge not considered as interest; excessive fee or charge.") is part of the Michigan Compiled Laws, the codified statutory law of Michigan. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Michigan § 445.1856?
A common citation format is "Michigan Compiled Laws § 445.1856" (Michigan). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Michigan law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Michigan official source linked on this page or consult a licensed Michigan attorney.
How does Michigan § 445.1856 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Michigan can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Michigan.