Michigan Creditor Harassment
Dealing with debt can be overwhelming, but facing constant harassment from creditors can make the situation even more stressful. The average debt per resident in Michigan in 2023 was $77,903. [1]
If you’re a Michigan resident struggling with aggressive debt collection practices, you have legal protections. No one should have to endure harassment or abuse from creditors, and understanding your rights is the first step in regaining control of your financial situation.
In Michigan, both state and federal laws protect consumers from unfair debt collection tactics. If you’re being bombarded with phone calls, threatening letters, or other forms of harassment, you don’t have to suffer in silence. This blog will help you understand your rights and provide practical steps you can take to stop creditor harassment and protect yourself legally.
Your Rights Under the Fair Debt Collection Practices Act (FDCPA)
The Fair Debt Collection Practices Act (FDCPA) is a fundamental federal law designed to protect consumers from abusive debt collection practices. It applies specifically to third-party debt collectors (those hired by the original creditor), not the creditor itself. Understanding the FDCPA can help you recognize when a collector has crossed the line. Key rights under the FDCPA include:
- Protection Against Harassment: Debt collectors are prohibited from using abusive tactics such as threatening violence, using obscene language, or calling you excessively. Harassment, including constant phone calls or leaving threatening messages, is not allowed.
- Restrictions on Contact: Collectors cannot contact you at unreasonable hours—specifically before 8 a.m. or after 9 p.m. They also cannot repeatedly call or reach out to you at your place of employment if you’ve told them to stop.
- Right to Request a Cease-and-Desist: If you no longer wish to be contacted by a collector, you can send a written request (a "cease-and-desist letter"). Once received, they must stop contacting you, except to inform you of specific legal actions (such as filing a lawsuit).
- No False or Misleading Statements: Debt collectors cannot misrepresent themselves. They cannot falsely claim to be an attorney, threaten you with arrest, or falsely state the amount you owe. They must be truthful about the debt and any legal actions they may take.
- Right to Dispute the Debt: You have the right to request validation of the debt, meaning the collector must provide proof that you owe the debt. This request must be made within 30 days of their initial contact.
If a creditor or debt collector violates any of these provisions, you can take legal action. This might include filing a complaint with the Consumer Financial Protection Bureau (CFPB), your state’s attorney general, or even suing the collector for damages. Understanding these rights helps you stay empowered, and prevents you from being a target of illegal or unfair debt collection practices.

Michigan's Debt Collection Laws
In addition to federal protections, Michigan has laws that protect consumers from abusive debt collection practices. The Michigan Consumer Protection Act (MCPA) and other state laws provide extra safeguards:
- No Unfair Practices: Debt collectors in Michigan cannot use deceptive or unfair methods, such as misleading statements or threats of illegal action. They must follow strict rules regarding how they contact you.
- Licensing of Debt Collectors: Debt collection agencies must be licensed in Michigan. If an unlicensed agency contacts you, it may be violating state law.
- Garnishment and Exemptions: If a creditor wins a lawsuit, they may garnish wages or seize property, but Michigan law limits how much can be taken based on your income. Certain assets, like basic household goods, may be exempt from seizure.
- Debt Disputes: You have the right to dispute a debt and request proof of it. If the collector cannot verify the debt, they must stop collection efforts.
- Statute of Limitations: Michigan’s Statute of Limitations for most consumer debts is 6 years. After this period, creditors can no longer file a lawsuit to collect the debt.
Michigan’s laws provide important protections against aggressive debt collection tactics, and if your rights are violated, you can file complaints with the Michigan Attorney General’s Office or take legal action. These state laws work alongside federal protections to help you fight back against unfair debt collection practices.
Steps to Take if You're Facing Creditor Harassment in Michigan
If you’re being harassed by creditors, there are clear steps you can take to protect yourself and stop the abuse. Here’s what you can do:
- Know Your Rights: Familiarize yourself with your rights under the FDCPA and Michigan law. This will help you recognize when a collector is crossing the line.
- Document Everything: Keep a record of all communication with creditors—notes on phone calls, copies of letters, and any messages left. This documentation will be useful if you need to report harassment or take legal action.
- Request Debt Verification: If a collector contacts you about a debt, you have the right to request verification. Within 30 days of their initial contact, ask them to prove the debt is valid and that they have the right to collect it.
- Send a Cease-and-Desist Letter: If you no longer want to be contacted, send a formal cease-and-desist letter to the creditor or collection agency. Once they receive it, they must stop contacting you, except to inform you of specific legal actions (such as filing a lawsuit).
- File a Complaint: If a collector violates your rights, report them. You can file a complaint with the Michigan Attorney General’s Office, the Consumer Financial Protection Bureau (CFPB), or the Federal Trade Commission (FTC).
- Seek Legal Help: If the harassment continues or if you’re facing a lawsuit, consider consulting with an attorney who specializes in consumer protection or debt defense. A lawyer can help you understand your options and take legal action if necessary.
The law is on your side—don’t be afraid to assert your rights.

What to Do About Creditor Harassment Following an Automatic Stay in Michigan
If you’ve filed for bankruptcy, an automatic stay goes into effect immediately, which legally halts most creditor actions, including harassment. However, there are situations where creditors might still try to contact you, even after an automatic stay is in place.
Here’s what you can do if this happens:
- Know Your Rights: The automatic stay is a powerful tool that prevents creditors from taking any collection actions against you, including phone calls, lawsuits, and wage garnishments. If creditors continue to contact you after filing for bankruptcy, it’s a violation of federal law.
- Document the Harassment: Keep a detailed record of any continued collection attempts, including phone calls, letters, or other forms of communication. Make a note of dates, times, and the content of the messages.
- Notify Your Bankruptcy Attorney: If a creditor violates the automatic stay by continuing to harass you, immediately inform your bankruptcy attorney. They can help you take the next steps to address the violation.
- File a Motion for Contempt: If the creditor's actions are a clear violation of the automatic stay, your bankruptcy attorney may file a motion for contempt with the bankruptcy court. This can result in the creditor being fined or facing other penalties.
- Consider Seeking Damages: In some cases, if a creditor violates the automatic stay, you may be entitled to damages. Your bankruptcy lawyer can guide you through the process of pursuing compensation for any harm caused by the creditor's actions.
What to Do If You Are Sued for Debt in Michigan
If you’ve been sued over a debt in Michigan, take the situation seriously but remain calm. Here’s what to do:
- Don’t Ignore the Lawsuit: If you receive a summons or complaint, don’t ignore it. Failing to respond could lead to a default judgment, where the creditor wins by default and may pursue actions like wage garnishment.
- Review the Claim: Carefully examine the lawsuit to determine if the debt is valid. Sometimes, creditors or debt collectors may sue over a debt that is not yours, or they may not have the proper documentation to prove the debt.
- Respond to the Court: You have a limited time to respond—usually 21 days in Michigan. In your response, you can admit the debt, deny it, or assert any defenses (like the statute of limitations or lack of documentation). Responding properly is crucial to protect your rights.
- Consider Settlement or Negotiation: If the debt is valid, you may be able to negotiate a settlement or repayment plan with the creditor. In some cases, creditors will accept a reduced amount to settle the debt, especially if you’re facing financial hardship.
- Defend Yourself in Court: If you decide to contest the lawsuit, you’ll need to present evidence and argue your case in court. This may include showing that the debt is invalid, that the collector violated laws, or that the statute of limitations has expired. You have the right to request proof of the debt and any legal standing the creditor has.
- Wage Garnishment or Property Seizure: If the court rules against you, the creditor may try to garnish your wages or seize your property. Michigan law offers protections, such as limits on how much can be garnished from your wages based on your income. You can also explore options like requesting a payment plan or hardship exemption.
If you are sued for debt, take immediate action. Ignoring the situation can make things worse. You have legal rights in Michigan, and seeking professional bankruptcy help can provide the guidance you need to resolve the matter fairly.

Facing creditor harassment in Michigan? Contact Frego & Associates today to protect your rights and put an end to the stress.
Source:
[1] Streaks, J. (2025, January 6). Average American debt: Household debt statistics. Business Insider. https://www.businessinsider.com/personal-finance/credit-score/average-american-debt