Michigan B2B Debt Collection Rules
Michigan has a large and diverse commercial economy anchored by automotive, manufacturing, and technology sectors. Collecting unpaid B2B invoices in Michigan requires compliance with state licensing requirements and an understanding of which consumer-protection statutes may touch commercial activity.
Key distinction: The federal FDCPA does not apply to B2B debts. Michigan's Consumer Protection Act focuses primarily on consumer transactions, providing relatively limited exposure for pure commercial collection — but maintaining professional standards across all accounts remains best practice.
How Long You Have to Collect
Michigan Compiled Laws — MCL §600.5807
The statute of limitations determines how long a creditor has to file a lawsuit to collect a debt. Once expired, the debt is not forgiven — but it becomes unenforceable through the courts.
| Contract Type | Time Limit | Code Section |
|---|---|---|
| Written contract | 6 years | MCL §600.5807 |
| Oral contract | 6 years | MCL §600.5807 |
| Open account (invoices) | 6 years | MCL §600.5807 |
| Promissory note | 6 years | MCL §600.5807 |
Important: The clock starts from the date of last activity — typically the last payment received or the invoice due date. A partial payment or written acknowledgment of the debt may restart the limitations period.
Who Needs a License
Michigan Collection Agency License
Michigan requires third-party debt collectors to hold a Collection Agency License. The state regulates collection agencies to protect both debtors and creditors in commercial transactions.
- Third-party collectors (agencies collecting for others) must hold a Michigan Collection Agency License
- Original creditors collecting their own debts are generally exempt from licensing
- Licensing is administered through the Michigan Department of Insurance and Financial Services (DIFS)
- Annual renewal required with updated bonding and registration
- Failure to hold a required license can void collection rights
How AgentCollect Handles This
- AgentCollect operates under its own Michigan Collection Agency License — you don't need to obtain one
- Our partnered attorneys are licensed and barred in Michigan
- All communications automatically include required disclosures
- Licensing status is verified and renewed annually
Laws That Apply to B2B Collections
Michigan Regulation of Collection Practices Act
Michigan's collection practices law governs the conduct of debt collectors in the state. While primarily consumer-focused, it sets the professional standard for all collection activity.
- Prohibits harassment, false representations, and unfair practices
- Requires written validation of debt upon request
- Restricts contact outside 8am–9pm local time
- Mandates cease-and-desist compliance
Michigan Consumer Protection Act — Limited B2B Application
The Michigan Consumer Protection Act (MCPA) focuses on transactions involving consumers. Direct B2B commercial debt collection has limited exposure under the MCPA, but sole proprietors and small businesses may occasionally receive limited protections.
- Applies primarily to consumer-facing transactions
- B2B debts between incorporated entities have minimal MCPA exposure
- Best practice: maintain professional standards regardless of debtor size
- Consult counsel for disputes involving sole proprietors
UCC Article 2 — Commercial Transactions
The Uniform Commercial Code governs most B2B commercial transactions in Michigan, treating both parties as sophisticated commercial entities with the ability to set their own contractual terms.
- Governs sale of goods between businesses
- Allows contractual modification of remedies and limitations
- Permits higher interest rates than consumer transactions
- Commercial reasonableness standard applies
Automatic Michigan Compliance
Every AgentCollect account is pre-configured for Michigan's specific requirements. No manual setup needed.
| Requirement | How AgentCollect Handles It |
|---|---|
| Contact hours (8am–9pm ET) | AI agents auto-detect timezone from area code. Never calls outside permitted hours. |
| Validation notice | Automatically sent within 30 days of first contact with all required disclosures. |
| Statute of limitations | Accounts past the 6-year SOL are flagged and handled with a modified approach. |
| Michigan Collection Agency License | AgentCollect holds its own license. Clients don't need to obtain one. |
| Cease-and-desist | Immediately stops all contact. Account moved to legal review queue. |
| Call recording disclosure | Michigan is a one-party consent state. Calls are recorded per AgentCollect policy. |
Michigan B2B Debt Collection FAQ
Collecting B2B debts in Michigan?
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