My question involves landlord-tenant law in the State of: Michigan.

I am going to move out of my apartment in approximately 45 days. When moved in I was told I could pay a refundable security deposit of 1.5 times my rent or pay a one time non-refundable fee called suredeposit. The agent acting on behalf of the landlord made it sound like insurance. I pay this fee and won't get it back but it covers your deposit and damages. Now that I am about to move out and looked into it I have come to discover I unwittingly purchased a security bond for the landlord. Basically I payed a small fee for a bond that the landlord will then make a claim for damages/rent/ect. on. Then they Bond company comes after me like a collection agency removing my ability to disputed or deal directly with my landlord and damaging my credit report if i do not pay it imminently.

My question are am I understanding suredeposit correctly? Is this type of security deposit legal in Michigan? Do I have any legal ground to fight this after being completely lied to by the agent acting on behalf of the landlord? Am I entitled to a damages bill before they make a claim on the bond?