Demand Letter Laws in Michigan: $7,000 Small Claims, 6-Year Statute & Judgment Interest Under MCL 600.6013

You're a freelance UX designer in Detroit and a client owes you $6,200 for a completed website redesign. You've sent the friendly nudge, the itemized follow-up, and now it's been six weeks of silence. It's time for a demand letter — and you want to write one that carries real legal weight in Michigan. Good call. Michigan has a $7,000 small claims limit in district courts (MCL 600.8401), a variable judgment interest rate under MCL 600.6013 that automatically applies once a court rules, and a 6-year statute of limitations for written contracts — all of which shape exactly what an effective Michigan demand letter looks like.

This guide covers what Michigan law actually says about demand letters: the $7,000 district court small claims threshold, the variable judgment interest rate under MCL 600.6013, the 6-year statute of limitations (MCL 600.5807(8)), Michigan's treble damages for bounced checks, and the specific language that makes your Michigan demand letter impossible to ignore.

Michigan's Small Claims Limit: $7,000 in District Court

Michigan's small claims court operates through the District Court system under MCL 600.8401. The jurisdictional limit was raised from $6,500 to $7,000 in 2024, making Michigan one of the more generous states for small claims — higher than Ohio ($6,000) and New York ($5,000 in town/village courts, though NYC has $10,000), but lower than Georgia ($15,000). Your $6,200 invoice falls comfortably within the small claims limit.

Key Michigan small claims court facts for freelancers:

• Limit: $7,000 in damages (excluding costs and interest)
• Filing fee: $30–$70 depending on the claim amount
• Attorneys are not allowed in Michigan small claims court — it's designed for self-representation (MCL 600.8408)
• If the defendant wants a lawyer, the case is automatically moved to the general civil docket
• Statute of limitations for written contracts: 6 years (MCL 600.5807(8))
• Statute of limitations for oral contracts: 6 years (MCL 600.5807(4))
• Appeals from small claims go to the Circuit Court for a de novo trial

The attorney prohibition is a key Michigan advantage for freelancers. Because neither side can bring a lawyer to small claims, you're on equal footing with the client — even if they're a large company with in-house counsel. In fact, this often makes Michigan demand letters more effective: a client who knows they can't bring their lawyer to small claims court is more likely to settle before a hearing.

Michigan Judgment Interest: MCL 600.6013

Michigan law provides for automatic interest on money judgments under MCL 600.6013. Unlike Ohio's flat 6% rate, Michigan's rate is variable — it's calculated based on the 5-year United States Treasury Note auction rate plus 1%, and the Michigan Department of Treasury recalculates it every January 1 and July 1. As of mid-2026, the rate typically ranges from 5% to 7%.

Here's what MCL 600.6013 means for your demand letter in practice:

• Interest begins accruing from the date the complaint is filed with the court — not from the invoice due date (MCL 600.6013(8))
• For written instruments (like a signed contract or promissory note), interest accrues from the date the instrument becomes due — this is a critical distinction for freelancers with signed contracts (MCL 600.6013(6))
• The rate changes every January 1 and July 1 — reference the Michigan Department of Treasury's published rate as of your demand letter's date
• The current rate as of this writing is approximately 5.5% — roughly $341/year on a $6,200 claim

Your demand letter should acknowledge that Michigan's interest rate is variable under MCL 600.6013, reference the current published rate from the Michigan Department of Treasury, and state that interest will accrue from the date of filing if litigation becomes necessary. If you have a signed contract, assert that interest accrues from the due date under MCL 600.6013(6) for written instruments.

Michigan's 6-Year Statute of Limitations: MCL 600.5807(8)

Under MCL 600.5807(8), claims based on a written contract must be brought within 6 years from the date the claim accrues. For oral contracts, it's also 6 years under MCL 600.5807(4). This is longer than California's 4-year limit for written contracts but shorter than Ohio's generous 8-year window.

What this means for Michigan freelancers:

• You have 6 years from the date the invoice became past due to file a claim — a solid window but not indefinite
• The clock starts when the cause of action accrues — typically the date payment was due under your contract or invoice
• Part payment or a written acknowledgment of the debt can reset the 6-year clock under Michigan's partial payment doctrine (MCL 600.5866)
• For email agreements: Michigan courts have recognized that electronic communications can constitute a written contract, but a formal signed agreement is always stronger

Michigan's Bounced-Check Treble Damages: MCL 600.2952

This is Michigan's hidden weapon for freelancers. Under MCL 600.2952, if a client pays you with a check that bounces, you can recover treble damages (three times the check amount) up to $500 in statutory damages on top of the check amount. Many freelancers don't know this exists — and including it in your demand letter signals that you understand Michigan law beyond basic contract principles.

How it works:

• If the client paid with a bad check (NSF or account closed), send a written notice demanding payment within 7 days
• If they don't pay, you can sue for the check amount plus statutory damages of up to $500
• For a $2,000 bounced check, you could claim $2,000 (check amount) + $500 (statutory damages under MCL 600.2952) = $2,500
• This applies regardless of whether your contract mentions bounced checks — it's statutory

If a bounced check is part of your dispute, mention MCL 600.2952 in your demand letter and calculate the statutory damages explicitly. It transforms a standard breach-of-contract demand into a claim with enhanced remedies — and it shows the client you've done your legal homework.

Michigan Consumer Protection Act — Limited B2B Application

The Michigan Consumer Protection Act (MCPA), MCL 445.903, prohibits unfair and deceptive acts in trade or commerce. It allows for actual damages, injunctive relief, and attorney fees in consumer transactions. However, Michigan courts have generally held that the MCPA applies toconsumer transactions — not business-to-business disputes. If your client is a business entity (LLC, corporation), the MCPA probably doesn't apply.

The exception: if your client hired you as an individual consumer for personal services (e.g., a personal website, a family portrait photography session), the MCPA may apply. In those cases, consult a Michigan attorney about potential MCPA claims. For typical B2B freelance work, rely on your contract — not the MCPA.

What a Michigan Demand Letter Must Include

Michigan district courts don't require a specific demand letter format, but a letter with these elements maximizes your leverage:

1. Clear identification of parties: your full name or business entity name, your address, the client's legal name and registered business address. For Michigan LLCs and corporations, you can verify business registrations through the Michigan Department of Licensing and Regulatory Affairs (LARA) business entity search.
2. Itemized claim: list each unpaid invoice by number, date, and amount. Include late fees per your contract. If applicable, reference bounced-check damages under MCL 600.2952.
3. Legal basis: reference your written contract, statement of work, or the email approval chain. Note that Michigan's 6-year statute of limitations under MCL 600.5807(8) confirms the claim is timely.
4. Interest notice: state: "Under MCL 600.6013, judgment interest will accrue at the rate published by the Michigan Department of Treasury (currently approximately [X]% per annum) from the date of filing should litigation become necessary. If this debt is based on a written instrument, interest may accrue from the due date under MCL 600.6013(6)."
5. Clear payment deadline: 14 days from receipt of the letter is standard. State what happens after the deadline: filing in the appropriate Michigan District Court, Small Claims Division.
6. Venue statement: name the specific Michigan District Court where venue is proper — e.g., "36th District Court (Detroit)" or "Washtenaw County 14A District Court (Ann Arbor)." Venue is proper where the defendant resides or where the contract was performed.

Michigan-Specific Pitfalls to Avoid

1. Assuming the judgment interest rate without checking

Unlike Ohio's flat 6% rate, Michigan's rate under MCL 600.6013 changes every January 1 and July 1. Citing an outdated or incorrect rate undermines your credibility. Before writing your demand letter, check the Michigan Department of Treasury's current published judgment interest rate. As of mid-2026, it's approximately 5.5% — but verify.

2. Filing in the wrong district

Michigan has over 100 district courts. Venue is proper where the defendant resides or where the contract was performed. If you're in Grand Rapids and the client is in Ann Arbor, you likely need to file in Washtenaw County — not Kent County. Naming the wrong district court in your demand letter signals carelessness. Verify the correct district court at courts.michigan.gov before writing.

3. Missing the bounced-check treble damages

If a client's check bounced, MCL 600.2952 gives you treble damages plus up to $500 in statutory penalties — remedies that go far beyond the invoice amount. Many Michigan freelancers fail to claim these in their demand letters. Don't leave money on the table. If a bad check is part of your claim, include the statutory damages calculation explicitly.

4. Relying on the MCPA for B2B disputes

The Michigan Consumer Protection Act is powerful — but it's for consumers. If your client is a business, citing the MCPA in your demand letter weakens your credibility because the statute almost certainly doesn't apply. Stick to your contract, the UCC (if applicable), and Michigan's interest and bad-check statutes. Leave the MCPA for genuine consumer disputes.

When to Escalate Beyond a Demand Letter in Michigan

If 14 days pass after a properly-sent Michigan demand letter and payment hasn't arrived, your next step is small claims court:

• Go to the District Court clerk's office in the county where the defendant resides or does business
• File an Affidavit and Claim (Small Claims form DC 84) — available at michigan.gov/courtforms
• Pay the filing fee ($30 for claims up to $600; $50 for $600–$1,750; $70 for $1,750–$7,000)
• The court schedules a hearing, typically within 30–45 days
• Bring your demand letter, signed contract, invoices, bank records, and all correspondence — the attorney prohibition means evidence is everything

Your Michigan demand letter is the centerpiece of your small claims case. It proves good-faith attempt to resolve before filing. It documents exact amounts, legal basis, and interest calculations. It establishes the timeline. And in Michigan — where neither side can bring a lawyer — a clear, comprehensive demand letter with solid documentation often wins before the hearing even starts. The client reads it, realizes they can't out-lawyer you, and sends the check.

Generate Your Michigan Demand Letter — $29

DemandFlow generates a Michigan-compliant demand letter with all the legal language your claim needs: itemized damages, interest calculation under MCL 600.6013, the correct District Court venue, bounced-check treble damages under MCL 600.2952 where applicable, the 6-year statute of limitations reference, and a 14-day payment deadline. Fill in your details, download the letter, and give your Michigan invoice the legal weight it deserves — $29, one-time, no subscription.

Not legal advice: This guide and DemandFlow's templates are for informational purposes only and do not constitute legal advice. For claims near or above the $7,000 small claims limit, bounced-check scenarios, or disputes involving the MCPA, consult a Michigan-licensed attorney.