Michigan Collection Laws

INTEREST RATE

• Legal: 5%
• Judgment: 7.162 changes semiannually
• Usury limit 25%

STATUTE OF LIMITATIONS (IN YEARS)

• Open Acct.: 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-not to exceed $500.
• Retail Claims - Notice Requirements.

GENERAL GARNISHMENT EXEMPTIONS See federal law.

COLLECTION AGENCY BOND & LICENSE (RETAIL ONLY)

• Bond: $5,000 - $50,000
• License: Yes
• Fee:
  • $150 - Investigation
  • $225 - Initial
  • $125 - Annually
• Exemption for out-of-state collectors: Out-of-state collector are exempt if [1] collecting by interstate means; and [2] have no clients in the state of Michigan.

This site has taken this information from the website listed in this state. We will not be held liable for any errors or for not updating. Updates are done every 3 months.