Debt Help & Debt Relief in Michigan
Michigan Debt Relief and Settlement Laws
(This is intended to be a helpful and informational debt resource for Michigan consumers and does not constitute legal advice.)
Debt Collection
Michigan follows the set of federal laws dealing with collection agencies (and law firms that collect debts) that are collectively known as the Fair Debt Collection Practices Act (FDCPA). Original creditor or creditor collecting own debt must comply with all the provisions of the FDCPA, except those provisions dealing with required disclosures. (For example, the original creditor does not have to verify the debt’s validity).
Debt collector must provide debtor with receipts for cash payments and other payments when specifically requested to do so
Maximum Interest Rate a Collection Agency Can Charge in Michigan: 5%
Michigan Wage Protection: 60% of wages (no less than $15/week) plus $2/week per nonspouse dependent; if not head of household, may keep up to 40% of wages (no less than $10/week). FEDERAL LAW STIPULATES THAT AT LEAST 75% IS PROTECTED—OVERRIDES STATE LAW.
Statute of Limitations
A statute of limitations is a law that sets forth the maximum period of time, after certain events, that legal proceedings based on those events may be initiated. For debt, the statutes of limitation apply to the maximum period of time after a consumer has become delinquent on their payments. The key point to remember is that you are considered delinquent not from the date of your last payment, but rather the day after you have gone past due. In other words, if you made your last payment on 3/3/03 and your next payment was due the same day of the next month, the statute of limitations on the debt would not start running until 4/4/04. The statutes of limitations vary from state to state and depend on the type of debt and where the original transaction took place (i.e. if you took the loan out in California but currently live in Michigan, the applicable statutes of limitations would be California’s).
Oral Agreements: 6 years
Written Contracts: 6 years
Promissory Notes: 6 years
Open Accounts (credit cards): 3 years
Whether you have unsecured credit cards, medical bills, personal loans or collection accounts, there’s help for you. The National Debt Relief Group offers a free consultation. You can fill out our Short Application and one of our debt specialists will contact you within
minutes, or you can call now – (888) 703-4948.
I am an associate at National Relief, which is a Debt Consolidation Company that has helped thousands of Americans facing credit card debt problems. We help with debt settlement, debt management, and other debt related financial crisis' facing consumers.