Michigan Collection Agencies

Michigan collection agencies are a smart business solution when dealing with customers who owe you money won't pay.

Michigan businesses face a number of collections problems. Unpaid bad debt creates negative cash flow for your business.

If your in house collections efforts are not consistent and effective, you lose not only money, but productivity as well, because you're having to dedicate labor time to "chasing after" these delinquent accounts.

To better recover on these past due accounts, many Michigan businesses turn to Michigan collection agencies.

How Can A Michigan Collection Agency Help Me?

A Michigan debt collection agency can help your business collect its bad debts by:

Mail
Typically, collection agencies make use of a number of letters sent to the debtor, called demand letters. These are often very effective in getting the debtor's attention, especially since they're coming from a neutral third party. They're written to remind them of their obligations, and get them to pay or make payment arrangements to satisfy the debt.

Phone
If, after a series of demand letters don't prove effective, a Michigan collection agency will then make phone calls to the debtor.

Legal Options
Michigan debt collection companies often can take legal action, up to and including filing suit, if both the demand letters or phone calls haven't been successful.

Areas Served in Michigan

Michigan collection agencies offer coverage statewide, including:

• Detroit
• Grand Rapids
• Warren
• Flint
• Sterling Heights
• Lansing
• Ann Arbor
• Livonia
• Dearborn
• Westland

Choosing A Michigan Commercial Collection Agency

When choosing a Michigan collection agency, here are a few areas to pay attention to:

Debt Collection Techniques

• ask for sample demand letters that they will be sending to your clients. You want to make sure the language is both strong enough to get their attention, but doesn't alienate your customers. You also want to make sure they abide by the federal Fair Debt Collection Practices Act (FDCPA), and other state collections laws.

  The FDCPA forbids abusive, threatening and obscene language when dealing with debtors, and that they be treated with respect.

• Ask how is debtor information forwarded to the collection agency.
• When and how is collected monies sent to your business.
• How can your business monitor the collections activity.

Company History and Reputation
Ask for references of other similar businesses they've worked with; ask how long they've been in business. Many agencies come and go, so make sure you're dealing with a Michigan collection agency that has stability.

When you're ready to hire a Michigan collection agency, let DebtCollectionSteps.com help you. Fill out the quote form below, and we can refer you to an agency that serves your area.

A Summary of Michigan Collection Agency Laws

• Michigan Collection Laws Interest Rate
  
  Legal: 5%
  Judgment: 7.162 changes semiannually
  Usury limit 25%



• Michigan Collection Laws Statute Of Limitations (Years)
  
  Open account: 6
  Written Contract: 6
  

  Sales (UCC) Contract: 4
  Domestic Judgment: 10 renewable
  Foreign Judgment: 10
  
  

• Michigan Collection Laws Bad Check Laws (NSF) (Civil Penalty)
  
  Twice the amount of check-not to exceed $500.
  Retail Claims - Notice Requirements.
  
  
• Michigan Collection Laws General Garnishment Exemptions
  
  See federal law





• Michigan Collection Laws Collection Agency Bond & Licensing Rules
  
  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.

Return to National Collection Agencies from Michigan Collection Agencies.