Dealing With Debt Collectors in Michigan (2026)
Reviewed by DocDraft Legal Team · Michigan · Last updated August 13, 2026
This Michigan guide explains your rights when a debt collector contacts you in the state. Michigan's statute of limitations on most contract and open-account debt is six years under MCL 600.5807, so a collector who sues after that window can be challenged. Unlike the federal FDCPA, Michigan's Regulation of Collection Practices Act (MCL 445.251 et seq.) and Article 9 of the Occupational Code (MCL 339.901 et seq.) reach original creditors and their in-house collectors, not just third-party agencies, and require most collection agencies to be licensed through LARA. Michigan also caps most wage garnishment at 25 percent of disposable earnings. This page walks through the state limitations periods, licensing, exemptions, and how to file a complaint with the Michigan Attorney General.
What is the statute of limitations on debt in Michigan?
Under MCL 600.5807, Michigan gives a creditor six years to sue on most contract debt, including written contracts, oral contracts, and open accounts such as credit cards. Once six years pass from when the debt first accrued, the debt is generally time-barred and you can raise that as a defense to a collection lawsuit.
Can debt collectors garnish my wages in Michigan?
Yes, but only after a creditor wins a court judgment and obtains a garnishment writ. Michigan follows the federal cap, limiting most consumer-debt garnishment to 25 percent of your disposable earnings, and MCL 600.4031 and related exemptions protect certain earnings. Head-of-household and low-income earners may keep more, and some income is fully exempt.
How do I stop a debt collector from contacting me in Michigan?
Send a written cease-communication letter. Under 15 U.S.C. 1692c(c), once a third-party collector receives it, contact must stop except to confirm it is ending or to note a specific remedy. Michigan's Regulation of Collection Practices Act (MCL 445.251 et seq.) also bars harassing contact and reaches original creditors the FDCPA does not.
What can a debt collector not do in Michigan?
Under MCL 445.252, a Michigan collector cannot misrepresent the amount or its authority, threaten action it cannot legally take, harass or embarrass you, or communicate the debt to third parties improperly. These duties apply to original creditors too, and unlicensed collection under Occupational Code Article 9 is itself prohibited.
Michigan reaches original creditors and licenses collectors, backed by the Attorney General
Michigan gives consumers more than the federal FDCPA. The Michigan Regulation of Collection Practices Act (MCL 445.251 et seq., Act 70 of 1981) defines a 'creditor' to include the party to whom a debt is owed, so its prohibitions on false statements, harassment, and improper third-party contact reach original creditors and their in-house collectors, not just outside agencies. Third-party collection agencies and collectors must also be licensed under Article 9 of the Michigan Occupational Code (MCL 339.901 et seq.), administered by the Department of Licensing and Regulatory Affairs (LARA); an agency that violates the rules can face discipline, fines, or loss of license. On collection itself, Michigan's statute of limitations for most contract and open-account debt is six years (MCL 600.5807), and wage garnishment on a judgment is generally capped at 25 percent of disposable earnings, with additional protections under MCL 600.4031 and Chapter 60 exemptions. Complaints go to the Michigan Attorney General's Consumer Protection Team, which mediates disputes with collectors and creditors.
Relevant Laws
Michigan Statute of Limitations on Contracts, MCL 600.5807
Sets a six-year limitations period for actions to recover damages or money due for breach of most contracts, including written and oral contracts and open accounts such as credit cards. A collection lawsuit filed after six years from accrual is generally time-barred and can be defended on that basis.
Michigan Regulation of Collection Practices Act, MCL 445.251 et seq.
Act 70 of 1981 prohibits false, deceptive, harassing, and unfair collection conduct. Unlike the FDCPA, it defines a creditor to include the party to whom a debt is owed, so it reaches original creditors and their in-house collectors, not only third-party agencies.
Michigan Garnishment of Earnings, MCL 600.4031
Addresses garnishment tied to a defendant's personal labor and limits the garnishee's liability by the exemptions allowed under the Revised Judicature Act. Combined with the federal 25 percent cap and Chapter 60 exemptions, it limits how much of your wages a judgment creditor can reach.
Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. 1692-1692p
The federal baseline governing third-party debt collectors. It bars harassment (1692d), false or misleading representations (1692e), and unfair practices (1692f), restricts contact (1692c), and creates the 30-day debt validation right (1692g). Michigan law adds protections that reach original creditors.
Regional Variances
Michigan statute of limitations by debt type
Written contract
Six years from when the claim accrued, under MCL 600.5807. Michigan does not set a shorter period for oral versus written contracts; the general six-year contract rule applies to both.
Oral contract
Six years under MCL 600.5807. Michigan applies the same six-year limitations period to oral (verbal) contract debt as to written contracts, unlike states that give oral contracts a shorter window.
Open account / credit card
Six years under MCL 600.5807, treated as breach of a contract or open account. Michigan courts apply the general six-year contract limitations period to credit card and open-account debt.
Promissory note
Generally six years. A note payable at a definite time is governed by the UCC's negotiable-instruments limitations rule, MCL 440.3118, which sets a six-year period; confirm the note's specific terms and accrual date.: verify exact accrual trigger for demand versus fixed-date notes under MCL 440.3118.
Suggested Compliance Checklist
Read the validation notice and calendar the 30-day deadline
Within 5 days of first contact days after startingConfirm the collector sent the Regulation F validation notice (12 CFR 1006.34) with the creditor, amount, and dispute rights. Note the date received and calendar the 30-day window to dispute under 15 U.S.C. 1692g. Also check whether the debt is near Michigan's six-year limit under MCL 600.5807.
Confirm the collector is licensed with Michigan LARA
Before negotiating or paying days after startingUnder Article 9 of the Michigan Occupational Code (MCL 339.901 et seq.), third-party collection agencies must be licensed through LARA. Verify the collector's license and confirm whether the six-year statute of limitations (MCL 600.5807) has already run before you respond.
Send a written debt validation letter
Within 30 days of the validation notice days after startingIf you do not recognize the debt or the amount looks wrong, mail a written dispute and request for verification within the 30-day window. This forces the collector to stop collecting until it mails proof, and it avoids admitting a debt that may be time-barred under MCL 600.5807.
Send a cease-and-desist letter if you want contact to stop
As soon as you decide to stop contact days after startingUnder 15 U.S.C. 1692c(c) a written cease-communication letter requires a third-party collector to stop once received. Michigan's MCL 445.252 separately bars harassing contact and reaches original creditors, so keep proof of mailing and log any contact that continues afterward.
File a complaint with the Michigan Attorney General or CFPB
Within 1 year of any FDCPA violation days after startingSubmit a complaint to the Michigan Attorney General's Consumer Protection Team at michigan.gov/ag/complaints or 877-765-8388, and to the CFPB at consumerfinance.gov/complaint. Because 15 U.S.C. 1692k generally requires suit within one year, consult an attorney promptly about statutory damages up to $1,000 plus fees.
| Task | Description | Document | Days after starting |
|---|---|---|---|
| Read the validation notice and calendar the 30-day deadline | Confirm the collector sent the Regulation F validation notice (12 CFR 1006.34) with the creditor, amount, and dispute rights. Note the date received and calendar the 30-day window to dispute under 15 U.S.C. 1692g. Also check whether the debt is near Michigan's six-year limit under MCL 600.5807. | - | Within 5 days of first contact |
| Confirm the collector is licensed with Michigan LARA | Under Article 9 of the Michigan Occupational Code (MCL 339.901 et seq.), third-party collection agencies must be licensed through LARA. Verify the collector's license and confirm whether the six-year statute of limitations (MCL 600.5807) has already run before you respond. | - | Before negotiating or paying |
| Send a written debt validation letter | If you do not recognize the debt or the amount looks wrong, mail a written dispute and request for verification within the 30-day window. This forces the collector to stop collecting until it mails proof, and it avoids admitting a debt that may be time-barred under MCL 600.5807. | debt-validation-letter | Within 30 days of the validation notice |
| Send a cease-and-desist letter if you want contact to stop | Under 15 U.S.C. 1692c(c) a written cease-communication letter requires a third-party collector to stop once received. Michigan's MCL 445.252 separately bars harassing contact and reaches original creditors, so keep proof of mailing and log any contact that continues afterward. | cease-and-desist-letter | As soon as you decide to stop contact |
| File a complaint with the Michigan Attorney General or CFPB | Submit a complaint to the Michigan Attorney General's Consumer Protection Team at michigan.gov/ag/complaints or 877-765-8388, and to the CFPB at consumerfinance.gov/complaint. Because 15 U.S.C. 1692k generally requires suit within one year, consult an attorney promptly about statutory damages up to $1,000 plus fees. | - | Within 1 year of any FDCPA violation |
Frequently Asked Questions
Credit card debt in Michigan is treated as an open account or contract, so the limitations period is six years under MCL 600.5807, running from when the debt first accrued (generally your last activity or default). After six years a collector can still ask you to pay, but it generally cannot win a lawsuit if you raise the statute of limitations as a defense.
Yes. Unlike the federal FDCPA, Michigan's Regulation of Collection Practices Act (MCL 445.251 et seq.) defines a creditor to include the party to whom a debt is owed, so its bans on false statements, harassment, and improper third-party contact reach original creditors and their in-house collectors. That gives Michigan consumers a route against a bank or lender collecting its own debt.
Generally yes. Under Article 9 of the Michigan Occupational Code (MCL 339.901 et seq.), collection agencies and collectors operating in Michigan must be licensed through the Department of Licensing and Regulatory Affairs (LARA). Collecting without a required license is prohibited, and you can ask LARA to confirm whether a collector pursuing you is properly licensed before you deal with it.
For most consumer debts, a Michigan creditor with a judgment can garnish no more than 25 percent of your disposable earnings, following the federal limit, and low earners are protected by a floor tied to the minimum wage. MCL 600.4031 and Chapter 60 exemptions limit garnishment further, and some income, such as certain public benefits, is fully exempt.
Possibly. On old debt, making a payment or acknowledging the debt in writing can restart or extend Michigan's six-year clock under MCL 600.5807, which is why you should confirm when a debt last accrued before you pay a time-barred debt. If you are unsure whether a debt is still enforceable, an attorney can help you evaluate it before you act.
Other Michigan guides
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