Michigan Debt Collection Laws and Statutes

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Michigan Debt Collection Laws and Statutes

AccountsReceivable.com handles debt collections throughout the entire state of Michigan.

Below you will find important information on Michigan state debt recovery laws including: Michigan Statutes, Judgments, Garnishments, Interest Rates, and Bad Check Laws.

STATE: MICHIGAN

Interest Rate

  • Legal: 5% (7% if in writing)
  • Usury Limit: 25%
  • Judgment: 1% over the US Treasury nore (it changes Jan. 1 & July 1) unless there is a contract in which event the rate of interest is governed by the contract.

STATUTE OF LIMITATIONS (IN YEARS)

  • Open Account: 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, no to exceed $500. Retail Claims – Notice Requirements.

GENERAL GARNISHMENT EXEMPTIONS

See federal law.