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Successfully collecting on your delinquent accounts is easiest when you work with a collection agency that’s familiar with the ins and outs of Michigan collection law. A Michigan collection agency can dramatically improve your chances of a successful debt recovery.
Time is of the essence when it comes to Michigan collections. For the best chances of a successful recovery, it’s important to contact a qualified debt collection agency at the first sign of trouble.
Granted, professional debt collection may seem expensive, but when you consider the value of the time you’ll spend pursuing an unpaid account yourself, working with a collection agency usually makes financial sense for Michigan businesses. Whether you’re based in Detroit, Grand Rapids, Warren, Sterling Heights, Lansing, Flint, Ann Arbor, Clinton, Livonia, or Dearborn, getting started — and started soon — with a Michigan debt collection agency is a smart business move.
Michigan Collection Laws Interest Rate
| Legal: | 5% |
| Judgment: | 7.162% |
| Usury limit: | 25% |
Michigan Collection Laws Statute Of Limitations
| Open Account: | 6 years |
| Written Contract: | 6 years |
| Sales (UCC): | 4 years |
| Domestic Judgment: | 10 years |
| Foreign Judgment: | 10 years |
Michigan Collection Laws Bad Check Laws (NSF) (Civil Penalty)
| Twice the amount of check-not to exceed $500. |
Michigan Collection Laws General Garnishment Exemptions
| See federal law. |
Michigan Collection Laws Collection Agency Bond & Licensing Rules
| Bond: | $5,000 to $50,000 |
| License: | Yes |
| Fee: | $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. | |
Disclaimer: While we strive to keep our state resource data accurate and up-to-date, the information contained on this page is provided without any warranty (expressed or implied), and should not be considered legal advice. We assume no liability for its use.
Convert more aged receivables into bottom-line revenue.
Our experienced collections specialists provide the best of both worlds: collection rates up to double the industry average, but with a delicate touch to protect your company’s relationships and good name. Schedule a free no-obligation consultation and learn how Summit A•R can put your balance sheets back in the black.
