Michigan does not rely on the federal Fair Debt Collection Practices Act (FDCPA) alone. The state has its own debt-collection statutes that, in several ways, reach further than federal law. The Michigan Regulation of Collection Practices Act (RCPA, MCL 445.251 to 445.258) covers creditors and others collecting their own debts, and the Occupational Code, Article 9 (MCL 339.901 and following) regulates third-party collection agencies and debt buyers. The practical headline: a Michigan consumer harmed by a prohibited collection practice can sue for actual damages or $50, whichever is greater, plus reasonable attorney fees and court costs, and for a willful violation the court may award a penalty of at least three times the actual damages, or $150, whichever is greater. Those state remedies exist on top of, not instead of, anything available under the FDCPA.
Two Michigan statutes, not one
The federal FDCPA generally applies only to third-party debt collectors, not to the original creditor collecting its own account. Michigan closes part of that gap. The RCPA applies broadly to a "regulated person" who collects a debt, and Michigan courts have read it to reach creditors collecting their own consumer debts as well as their employees and agents. So a practice that the FDCPA would not touch because the collector is the original creditor may still be illegal under Michigan's RCPA.
Third-party collection agencies and debt buyers fall under the Occupational Code. Article 9 lists prohibited practices that closely track the FDCPA and the RCPA, and it carries its own private right of action with damages and attorney fees. Many Michigan collection lawsuits cite all three bodies of law at once, because a single abusive call or letter can violate the FDCPA, the RCPA, and the Occupational Code simultaneously.
Collection agencies must be licensed in Michigan
This is a major protection the FDCPA does not provide. A business that collects debts owed to others in Michigan must hold a collection agency license issued by the Michigan Department of Licensing and Regulatory Affairs (LARA). Licensing means the agency must meet bonding, recordkeeping, and trust-account requirements, and it gives the state a mechanism to discipline or revoke the license of a collector that breaks the rules. Collecting without a required license is itself a violation and can expose the collector to penalties.
If a collector contacts you, you can ask for its license information and verify it through LARA. An unlicensed third-party collector demanding payment is a serious red flag and a possible defense or counterclaim if you are sued. Note that the original creditor collecting its own debt is generally not required to hold an agency license, but it is still bound by the RCPA.
Prohibited practices under Michigan law
The RCPA and Occupational Code forbid much of the same conduct the FDCPA does, and sometimes more. Prohibited practices in Michigan include:
Using or threatening force, criminal prosecution, or other illegal acts to collect a debt.
Communicating with a consumer in a misleading or deceptive way, or falsely implying that the collector is a lawyer, a court, or a government official.
Misrepresenting the amount owed, the legal status of the debt, or the consequences of nonpayment.
Harassing, oppressing, or abusing a person, including repeated or anonymous calls intended to harass.
Communicating with a debtor's employer about the debt except as specifically allowed.
Making an inaccurate, misleading, or unfair representation in a communication to collect.
Because Michigan's lists and the FDCPA's overlap heavily, the safest course is to treat any conduct that feels deceptive, threatening, or harassing as potentially actionable under at least one statute, and to document it.
How long can a Michigan debt be collected?
Michigan's statute of limitations sets the window for suing on a debt. For most written contracts and open accounts, the limitations period is six years under MCL 600.5807. After that period runs, a creditor or debt buyer can lose the right to win a lawsuit on the debt, and continuing to sue on a clearly time-barred debt can itself be an unfair practice. Be careful: making a partial payment or a new written promise to pay can restart the clock on some debts, so confirm the dates before you pay anything on an old account. If you are unsure how the period applies to your specific debt, treat the six-year figure as a starting point and verify the details, ideally with a Michigan attorney or legal aid office, before acting.
Wage garnishment limits
If a creditor obtains a judgment, it can try to garnish wages. Michigan generally follows the federal Consumer Credit Protection Act cap: a garnishment may take no more than 25% of disposable earnings, or the amount by which weekly disposable earnings exceed 30 times the federal minimum wage, whichever is less. Certain income, such as many public benefits, is exempt from garnishment. Michigan uses a periodic garnishment process that requires the creditor to serve paperwork and gives you a chance to file objections and claim exemptions. Always read garnishment papers carefully and respond by the stated deadline, because failing to object can cost you exemptions you were entitled to claim.
How to enforce your rights
You have two main paths, and they are not mutually exclusive. First, you can sue. The RCPA lets an injured consumer recover actual damages or $50, whichever is greater, plus reasonable attorney fees and court costs, with treble damages (at least three times actual damages, or $150, whichever is greater) for willful violations. The Occupational Code provides a parallel remedy against licensed collection agencies. These state remedies stack with FDCPA statutory damages of up to $1,000 per the federal scheme, so it is common to bring claims under both. There are short deadlines to sue, so do not wait.
Second, you can complain to the state. File a complaint with the Michigan Attorney General's Consumer Protection Team (sometimes called the Consumer Protection Division), which accepts complaints online at the Attorney General's website and by mail or phone. The Attorney General can investigate patterns of abusive collection and take enforcement action, and a complaint creates an official record. Licensing complaints about collection agencies can also go to LARA, which oversees the licenses. For credit-reporting problems tied to a collection, the federal Fair Credit Reporting Act (FCRA) and the Consumer Financial Protection Bureau (CFPB) provide additional avenues.
Where to verify the current rules
Statutes, dollar thresholds, and agency procedures change, and the federal minimum wage that drives the garnishment formula can be updated. Before you rely on any figure here, confirm the current text with the official sources: the Michigan Legislature's website for the RCPA (MCL 445.251 and following) and the Occupational Code (MCL 339.901 and following), LARA for collection-agency licensing, and the Michigan Attorney General's consumer-protection pages for complaints. When a number affects a deadline or a payment, verify it against the primary source rather than acting on a summary.
Official Michigan Sources
This page is based on Michigan law. Limits and deadlines change — verify the current details directly with the official Michigan sources below. This is general legal information, not legal advice.
Federal law also applies. Federal laws like the Fair Debt Collection Practices Act and Fair Credit Reporting Act protect you nationwide, on top of Michigan’s own rules.
Frequently asked questions
Does Michigan law cover the original creditor, or only outside debt collectors?
Unlike the federal FDCPA, which mainly covers third-party collectors, Michigan's Regulation of Collection Practices Act (RCPA) has been applied to creditors collecting their own consumer debts as well as their agents. Third-party collection agencies are additionally regulated under the Occupational Code, Article 9.
Do debt collectors have to be licensed in Michigan?
Yes. A business collecting debts owed to others must hold a collection agency license from the Michigan Department of Licensing and Regulatory Affairs (LARA). You can ask a collector for its license and verify it. An original creditor collecting its own debt generally does not need an agency license but must still follow the RCPA.
How much can I recover if a collector breaks Michigan's rules?
Under the RCPA you can recover actual damages or $50, whichever is greater, plus reasonable attorney fees and court costs. For a willful violation, a court may award at least three times the actual damages, or $150, whichever is greater. These remedies can be combined with FDCPA statutory damages.
How long can a debt be collected in Michigan?
For most written contracts and open accounts, Michigan's statute of limitations is six years under MCL 600.5807. Making a partial payment or new written promise can restart the clock on some debts, so confirm the dates before paying on an old account.
Where do I file a debt collection complaint in Michigan?
File with the Michigan Attorney General's Consumer Protection Team, which accepts complaints online at the Attorney General's website and by mail or phone. Licensing complaints about collection agencies can also go to LARA, and credit-reporting issues can be reported to the federal CFPB.
This article is general legal information, not legal advice, and may not reflect the most current law or the law in your jurisdiction. Laws vary by state and change over time. For advice about your specific situation, consult a licensed attorney.
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