Michigan Collection Agency Laws

Following is some important information on Michigan debt recovery laws including: Michigan Statutes, Michigan Judgments, Michigan Garnishments, Michigan Interest Rates, Michigan Bad Check Laws and Michigan Collection Agency Requirements. 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.