Michigan Debt Collection Laws and Statutes

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.

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