While those facing unmanageable debts have many problems to deal with these days, one of them should not be unreasonable and inappropriate harassment by creditors or collection agencies. That is why there are a number of federal and state laws protecting debtors today, including the Fair Debt Collection Practices Act and the Fair Credit Reporting Act. While state laws vary, many confirm and expand upon the federal laws, protecting the rights of debtors and providing avenues by which they and their attorneys can find relief.
While federal laws apply to all debt collection processes in Michigan, there are some state laws that also apply. Anyone subject to a violation of these laws should contact the Attorney General's office, as they have jurisdiction over these issues in the state of Michigan.
While we are all responsible to pay our debts in a timely manner, if there are complications or if a creditor loses track of what you owe, there are state statutes of limitations by which they must pursue collection. These statutes can also vary by type of debt and type of creditor; however, in general, in Michigan the statute of limitations on debt collection is 6 years, under breach of contract laws. Other statutes of limitations regarding outstanding debts include:
Federal laws concerning debt collections are generally comprehensive, although some states, including Michigan, have additional statutes that apply in this area.
Collection agencies may act to collect unpaid debts and contact debtors about such debts through normal means, such as phone calls, faxes, emails, personal visits, or letters as long as they are licensed in the state of Michigan to do so
Michigan has enacted laws making it illegal to harass, oppress, or abuse a debtor in order to collect a debt that is owed in an unreasonable manner, including repeated phone calls, communications, or merely causing the phone to ring repeatedly at unusual times or places that are inconvenient to the debtor.
In Michigan, there are several options for those who are facing circumstances where they are unable to pay their bills. Each of these options can be complicated and costly, so it can be wise to seek an attorney before attempting them:
The financial world is filled with challenges today, and it is important to make sure debtors have solid advice that they can count on. A knowledgeable financial attorney can help guide them to reliable methods of dealing with creditors and salvaging their credit rating.