September of 1977, the United States Congress passed the Fair Debt Collection Practices Act (FDCPA), which prohibited the aggressive tactics used by debt collectors to abuse and harass consumers into paying delinquent debts.
Shortly after Congress enacted the FDCPA, numerous states followed suit by passing debt collection laws that regulate third party debt collector behavior. Michigan law 339.901 to 339.930 covers debt collectors, but it does not include banks, attorneys, and lending institutions.
If Donald R. Conrad, PLC contacts you concerning the collection of a debt, you need to consult with a licensed attorney who understands the Michigan Fair Debt Collection Practices Act (MFDCPA).
How Long Can a Debt Collector Try to Collect a Debt?
States such as Michigan enacted debt collection laws to fill in the holes left by the landmark FDCPA. One area that Michigan has filled in the legal void concerns the statute of limitations for collecting a debt. According to Michigan law, a creditor has up to six years from the date of the last payment on a credit account to request a judgment.
After getting a judgment, a creditor can pursue collection of a debt indefinitely. However, debt collectors must renew judgments every 10 years to make the debt collection process legally valid.
An experienced consumer protection law attorney can explain the complexity of Michigan statute of limitations law as it pertains to third party debt collectors.
The MFDCPA and Unauthorized Fees
A Michigan FDCPA attorney who has worked with countless clients that had to deal with third party debt collectors charging fees and interest that a court did not authorize or was never part of the legal language of the original contract.
According to the attorney, “Other violations that I see would be most recently where they try to charge money that’s not authorized. What’s happened is a lot of these debt buyers have bought debt from banks.”
Under Michigan law, after an original creditor charges off a debt as uncollectible, interest on the debt stops accruing. The attorney emphasizes it is important for consumers to work with an attorney to determine if a credit contract includes the payment of fees and interest after the original creditor sells the debt to a third party collector.
Michigan Law and Wage Garnishment
A third party debt collector must win a judgment against you to garnish your wages. Just because you fall behind on the repayment of a debt does not give creditors and debt collectors the legal right to take some of your wages.
Exceptions to the judgment rule in Michigan include unpaid income taxes, student law defaults, and court ordered child support. After winning a judgment against you, a third party debt collector is allowed to garnish 25% of your disposable income or the amount over the minimum wage times 30, whichever is lower.
Consult with an Attorney
If Donald R. Conrad, PLC has violated the MFDCPA by making threatening phone calls or using deception to collect a debt, you might be eligible to receive damages for violation of the FDCPA.
An accomplished consumer protection law attorney can help you navigate the comprehensive state law that protects consumers against unlawful wage garnishments, as well as the attempted collection of a debt after the statute of limitations has expired.
*Disclaimer: The content of this article serves only to provide information and should not be constructed as legal advice. If you file a claim against Donald R. Conrad, PLC or any other third-party collection agency, you may not be entitled to any compensation.