Michigan Fair Debt Collection Practices Act
Collection agencies like to use high pressure tactics such as
calls to your place of employment, reporting to the credit bureaus,
and threats of garnishment. Congress enacted the Fair Debt
Collection Practices Act to provide protection against abusive and
unfair practices. Some states have also enacted laws to
provide protection for consumers who are dealing with debt
collectors. In Michigan, there are laws that protect
consumers from abusive debt collection practices.
Michigan has a few different laws to protect consumers. One of
which (Mich.Comp.Laws §§339.901 to 339.930) covers debt collectors
and repossessors. This law, however, excludes attorneys,
financial institutions (such as banks and other lenders) and real
estate professionals amongst other entities.
Also, this statute is a licensing statute - requiring the debt
collector to be licensed to collect in Michigan- and prohibits
misleading or deceptive communications, misrepresentations that the
oneself as an attorney or credit bureau, simulated legal process,
unlawful threats, publications, harassing or oppressive
This law also provides for private remedies for consumers to
allow a victim recovery of actual damages or $50, or equitable
relief. This Michigan law also provides for treble damages or
$150 for willful violations, and allows for attorney's fees for
In addition, there is Mich.Comp.Laws §§445.251to 445.258 that
covers banks, attorneys and creditors. This statute prohibits
misleading or deceptive communications, simulated legal process,
unlawful threats, publication, harassing or oppressive
methods. In this Michigan law, private remedies include
recovery of actual damages or $50, or equitable relief.
Treble damages or $150 for willful violations. Also allows
for attorneys fees for willful violations.