Michigan Debt Collection Laws 2026: The dual-statute structure: original creditors AND collectors regulated

Michigan is unusual in having two parallel state laws — one regulating third-party debt collectors (MCL § 339.915) and another regulating original creditors (MCL § 445.251 et seq.). This dual structure gives consumers stronger protection than relying on the federal FDCPA alone.

Statute of Limitations by debt type in Michigan

Critical: the clock starts on the date of last payment or first missed payment depending on contract terms. Always verify the exact date of last payment before making assumptions about SoL status — getting this wrong can mean losing your defense.

Michigan's dual-statute structure (the §339.915 vs §445.251 split)

Most US states have one debt collection statute that primarily covers third-party collectors (like the federal FDCPA). Michigan is different — it has two parallel statutes that together create comprehensive coverage:

MCL § 339.915 — the Michigan Occupational Code — regulates licensed third-party collection agencies. Violations can result in license suspension, statutory penalties, and private lawsuits.

MCL § 445.251 et seq. — the Regulation of Collection Practices Act — applies to original creditors collecting their own debts. This is the gap-fill that the federal FDCPA does NOT cover.

Both statutes prohibit similar conduct: harassment, false representations, threatening unlawful action, calling at unreasonable hours, contacting third parties improperly. Together, they create FDCPA-equivalent protection that applies to BOTH the original creditor (e.g., Capital One collecting its own debt) and any subsequent collection agency or debt buyer.

Practical effect: in Michigan, even if your debt is being collected directly by the original lender, you have state-law protections that consumers in states like Illinois (where the ICAA only covers third parties) do not have.

Michigan judgment renewal: 10 years and beyond

Under MCL § 600.5809, Michigan court judgments are valid for 10 years from the date entered. However, the creditor can renew the judgment by filing a new action before expiration — and this renewal can theoretically continue indefinitely.

During the 10-year period, the creditor can use: - Wage garnishment up to 25 percent of disposable earnings - Bank account levy (Michigan has a $1,000 personal property exemption, but bank funds typically exceed this) - Real property liens (subject to homestead exemption of $46,125 for 2025) - Personal property seizure (subject to exemptions)

The 10-year judgment lifespan combined with renewal availability means a Michigan judgment can effectively follow you for decades. This is why responding to a debt collection lawsuit BEFORE judgment is critical — once judgment is entered, your options narrow dramatically.

Important nuance: making any payment on an old debt in Michigan restarts the 6-year SoL under the traditional novation rule. Before paying anything on old debt, verify the date of last payment and SoL status. Once a debt is time-barred, ONE PAYMENT can give the creditor another 6 years to sue.

How to respond if sued in Michigan (6 steps)

Michigan courts will NOT automatically dismiss time-barred lawsuits. You must affirmatively raise the Statute of Limitations defense in your written Answer or it is waived.

Finding legal help in Michigan

Many Michigan consumer protection attorneys take debt defense cases on contingency or no-upfront-fee basis. They earn fees by winning damages against collectors or by saving you the judgment amount. Free initial consultations are common.

Frequently asked questions

What is the Statute of Limitations on debt in Michigan?

In Michigan, the SoL on most consumer debt depends on the type. Written contracts (credit cards with a signed agreement, promissory notes) have a 6-year SoL. Open accounts and oral contracts have a 6-year SoL. Medical debt: 6 years. Court judgments: 10 years. Legal source: MCL § 600.5807 (SoL). The clock starts on the date of last payment or default.

How long can creditors sue me for credit card debt in Michigan?

It depends on classification. If the collector can produce the original signed cardholder agreement, the 6-year written contract SoL applies. If they cannot — common for debts sold to debt buyers — the debt may be classified as an open account with a 6-year SoL. This means document discovery (demanding the signed agreement) is the most important defense strategy. Michigan courts have generally held that the burden is on the plaintiff to prove which SoL applies.

What restarts the Statute of Limitations in Michigan?

In Michigan, the SoL can be restarted by: (1) making any payment on the debt, even one dollar; (2) written acknowledgment of the debt signed by the debtor; (3) written promise to pay; (4) new charges on an open account. Michigan follows the traditional common-law rule that partial payment or written acknowledgment restarts the SoL. CRITICAL: never make a payment or sign anything related to old debt without first verifying the date of last payment and consulting a consumer attorney. A single dollar can give the collector another 6 years to sue.

Can Michigan creditors garnish my wages for credit card debt?

Yes, after a court judgment. Michigan applies federal wage garnishment limits: 25% of disposable earnings under MCL § 600.4012. Always-protected income includes Social Security, SSI, VA benefits, and federal pensions.

What is the MCPA and how does it protect me?

The Michigan Occupational Code § 339.915 (third-party collectors) and Regulation of Collection Practices Act § 445.251 (original creditors) provides Michigan-specific consumer protections that work alongside federal FDCPA. Legal source: MCL § 600.5807 (SoL); MCL § 339.915 (collectors); MCL § 445.251 et seq. (originals). Successful claims under these statutes typically include actual damages, statutory damages or multipliers, and attorney fees — making it economically viable for consumer attorneys to take cases on contingency. Violations include filing on time-barred debt, misrepresenting debt status, threatening unlawful actions, and harassment.

How do I respond if I am sued for old debt in Michigan?

You have 21 days (28 if served by mail) from being served to file an Answer. Michigan courts will NOT automatically dismiss time-barred lawsuits — you must affirmatively raise the SoL as an affirmative defense in your written response. State specifically: "Plaintiff's claim is barred by the Statute of Limitations under MCL § 600.5807 (SoL)." Also demand the collector produce: original signed credit agreement (critical for 6 vs 6 year SoL determination), complete payment history, chain of title proving they own the debt, and proof of last payment date.

How long are court judgments enforceable in Michigan?

Michigan court judgments are valid for 10 years and can typically be renewed before expiration. During this time, the creditor can attempt to collect through wage garnishment, bank account levies, property liens (subject to homestead exemption), and other post-judgment remedies. Michigan judgments accrue post-judgment interest at the statutory rate. Critical: respond to ANY debt collection lawsuit within the 21 days (28 if served by mail) answer period — a default judgment converts unenforceable time-barred debt into a 10-year collection nightmare.

What is the Michigan medical debt Statute of Limitations?

Medical debt in Michigan is generally subject to the 6-year SoL for written contracts (assuming the hospital can produce signed treatment consent and financial responsibility forms). Many medical debt cases are dismissed when hospitals cannot produce these documents for old accounts. Note: under recent CFPB rule changes (2025), medical debt under $500 cannot appear on credit reports — but this does not change the SoL for collection lawsuits.

Are federal student loans subject to the Michigan Statute of Limitations?

No. Federal student loans (Direct Loans, FFEL Program loans, Perkins Loans) have NO statute of limitations under federal law per the Higher Education Technical Amendments of 1991. They can be collected indefinitely through wage garnishment, tax refund offsets, and Social Security garnishment. Private student loans are subject to Michigan's 6-year written contract SoL. Federal loan rehabilitation, consolidation, or income-driven repayment plans can resolve default status.

What can debt collectors NOT do in Michigan?

Under MCPA and federal FDCPA, debt collectors in Michigan cannot: (1) Use threats of violence or criminal action; (2) Use obscene or profane language; (3) Misrepresent the amount, character, or legal status of the debt; (4) Threaten action they cannot legally take; (5) Call before 8 AM or after 9 PM local time; (6) Call you at work after you have told them to stop; (7) Falsely claim to be attorneys or law enforcement; (8) Communicate with third parties about your debt (narrow exceptions only). Violations can result in statutory damages, actual damages, and attorney fees.

Should I hire a Michigan consumer protection attorney?

Strongly recommended for debt collection lawsuits, especially given Michigan's consumer protection statutes. Michigan has consumer protection attorneys who specialize in FDCPA and MCPA litigation, often taking cases on contingency. Resources: Michigan Legal Help, Lakeshore Legal Aid, Legal Aid of Western Michigan, Legal Services of Northern Michigan, and the National Association of Consumer Advocates (consumeradvocates.org). Many attorneys offer free initial consultations to evaluate your case.

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