Michigan Collection Laws
Many states impose responsibilities, liabilities and penalties upon companies for activities of Michigan debt collectors engaged by them in the collection of debts. You need to know the Michigan collection laws and state debt collections law.
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You can be held accountable for what your Michigan collection attorney does or
doesn't do. You must know the Michigan collection laws, and the information here
can reduce your liability by giving you the state debt collections law
information for making informed decisions. Please study the Michigan collections laws listed below
and make sure your Michigan collection lawyer abides by them to the letter.
Debt collections law vary, and knowing the right collection
law for your state and your debtor's state is essential. Here you can read up
on: Michigan Statute of Limitations, Michigan Judgments, Michigan Garnishments,
Michigan Interest Rates, Michigan Bad Check Laws and Michigan Collection Agency
Requirements.
Michigan Compiled Law Chapter 445, Section 251 (445.251)
INTEREST RATE
Legal: 5%
Judgment: 7.162 changes semiannually
Usury limit 25%
STATUTE OF LIMITATIONS (IN YEARS)
Open Acct.: 6
Written Contract: 6
Sales (UCC) Contract: 4
Domestic Judgment: 10 renewable
Foreign Judgment: 10
BAD CHECK LAWS (CIVIL PENALTY)
Twice the amount of check-not to exceed $500.
Retail Claims - Notice Requirements.
GENERAL GARNISHMENT EXEMPTIONS See federal law.
COLLECTION AGENCY BOND & LICENSE (RETAIL ONLY)
Bond: $5,000 - $50,000
License: Yes
Fee:
$150 - Investigation
$225 - Initial
$125 - Annually
Exemption for out-of-state collectors: Out-of-state collector are exempt if [1]
collecting by interstate means; and [2] have no clients in the state of
Michigan .
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