Michigan Debt Collection and Consumer Protection Law

The Michigan legislature has enacted supplementary state laws (Mich. Comp. Laws. Ann. §§339.901-.920, 445.251-258) to the federal Fair Debt Collection Practices Act of 1977 (15 USCA § 1692 et seq.). The state laws supplement the FDCPA by providing additional protections to Michigan consumers.

Michigan law is broader than the FDCPA in that portions of it also apply to "creditors" and not just to "collectors."

Michigan law prohibits, among other things, various types of misrepresentation, oppression, publication of indebtedness, unlawful threats, accepting a check postdated more than five days in advance and threatening, deceptive or harassing communications by the debt collector.  In addition, in certain circumstances, Michigan law provides consumers with private remedies against debt collectors who violate the state’s laws (giving consumers the right to sue offending debt collectors). Moreover, in some cases involving willful conduct by the debt collector, Michigan law permits the award of attorneys' fees and costs to the consumer if he or she is successful at trial.

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For more information on Michigan debt collection law, click on the links below.

Links:

• Michigan Statute, Chapter 445, Act 70 of 1981. Regulation of Collection Practices
• Michigan Statute, Chapter 339, Act 229 of 1980, Article 9 (Occupational Code)
• Michigan Attorney General
• Michigan Courts

Federal Law: Fair Debt Collection Practices Act (FDCPA)

The FDCPA is a federal law that provides residents of all states with considerable rights and protections against abusive, unfair and deceptive debt collection practices by debt collectors. Examples of debt collection practices prohibited by the FDCPA include using profane language, lying and calling a debtor at work if the debt collector knows the employer disapproves. The debt collector must also protect the debtor’s privacy by not disclosing the debt to others such as friends, family members or co-workers.

A debt collector, as defined in the FDCPA, is anyone who regularly collects debts on behalf of an original creditor. Original creditors, such as credit card companies and banks, are not considered debt collectors when they attempt to collect debts owed directly to them. Therefore, original creditors are not covered under the FDCPA.

The FDCPA covers only consumer debt, which includes personal, family and household debt, but not business debt or any debt incurred for business purposes. Common types of consumer debt are credit card debt, automobile loans, home loans, utility bills and medical debt.

For more information on the FDCPA, including what debt collectors can and cannot do and what you can do if you believe a debt collector violated your rights under the FDCPA, please visit our FDCPA information page.