Debt collector laws in Michigan

Michigan's collection law

State law

Michigan Occupational Code, Article 9 (collection agencies) and the Regulation of Collection Practices Act (creditors and others collecting their own debts)

Law

MCL 339.901 to 339.920; MCL 445.251 to 445.258

Covers original creditors

Yes

Official text

Read the law

Only 22 of our 48 state guides, Michigan among them, apply the state law to original creditors too.

What Michigan adds to the FDCPA

• Businesses that collect their own debts (banks, credit unions, stores, employers collecting in their own name) are covered by the Regulation of Collection Practices Act. It bans deceptive and harassing collection methods (MCL 445.251(1), 445.252).
• Collectors may not use harassing, oppressive or abusive methods, such as making your phone ring repeatedly or calling at unusual times or places they know are inconvenient for you. All contacts must be made between 8 a.m. and 9 p.m. unless you agree in writing to other times (MCL 445.252(n); MCL 339.915(n)).
• Collectors may not contact you about a debt by postcard (MCL 445.252(r)).
• Collectors may not make inaccurate, misleading or deceptive statements, or hide the purpose of a call or letter (MCL 445.252(e)).

Suing a collector in Michigan

Yes. You can sue under either law. You get your actual damages or $50, whichever is more. If the violation was willful, the court may add a penalty of at least 3 times your actual damages or $150, whichever is more, and in that case must award attorney's fees and court costs (MCL 445.257; MCL 339.916).

Federal law (15 U.S.C. 1692k) also lets you sue within 1 year for actual damages, up to $1,000 extra and attorney's fees.

More Michigan rules

• Michigan has two collection laws. One covers licensed collection agencies (Occupational Code Article 9). The other covers creditors collecting their own debts (Regulation of Collection Practices Act). Both let you sue for at least $50 (MCL 339.916; MCL 445.257).

Licenses for collection agencies in Michigan

License required

Yes

Who licenses

Michigan Department of Licensing and Regulatory Affairs (LARA), Bureau of Professional Licensing, Board of Collection Agencies (MCL 339.904)

Check a license

Official license lookup

Like Michigan, 28 of the 48 states we cover license collectors.

In nearby states

• Indiana: Yes
• Wisconsin: Yes
• Illinois: Yes

Complaints about collectors in Michigan

• Michigan: Michigan Department of Attorney General, Consumer Protection Division (for licensed collection agencies, you can also complain to LARA) · 877-765-8388
• Federal: the Consumer Financial Protection Bureau takes complaints about debt collectors at consumerfinance.gov/complaint · (855) 411-2372.
• You can also report a collector to the Federal Trade Commission at ReportFraud.ftc.gov.

Steps against an abusive collector in Michigan

1. Save the evidence

   Keep letters, voicemails, emails and texts, and a log of every call.

2. Identify the collector

   Michigan requires a license, so check the collector's: Official license lookup.

3. Put your request in writing

   Write to dispute a debt or to stop collector calls, and keep a copy with proof of mailing.

4. Complain

   Complain to Michigan Department of Attorney General, Consumer Protection Division (for licensed collection agencies, you can also complain to LARA). You can also complain to the CFPB at consumerfinance.gov/complaint.

5. Know your right to sue in Michigan

   Under Michigan law: Yes. You can sue under either law. You get your actual damages or $50, whichever is more.

Questions about collector laws in Michigan

Related Michigan pages

• Michigan: every collection right on one page
• Statute of limitations in Michigan: 6 years
• Wage garnishment in Michigan: 25% (federal limit)
• Sued by a debt collector in Michigan: 21 days
• “Is my debt too old?” checker for Michigan
• Dispute a debt and ask for proof (validation letter)
• Tell a collector to stop or limit contact
• Debt collector licensing by state
• Guide: how to dispute a debt
• Guide: how to stop collector calls

Debt collector laws in nearby states