Creditor and debtor law includes the rights and obligations of (1) creditors who extend credit and make loans to consumers and businesses and (2) consumers and businesses who seek credit and loans for their personal and business finances. Creditor/debtor law consists primarily of state and federal statutes.
In Michigan, creditor and debtor law is governed by a combination of state statutes and federal laws that outline the rights and obligations of both parties. Creditors are individuals or entities that extend credit or make loans, while debtors are consumers or businesses that obtain credit or loans for personal or business purposes. State laws in Michigan, such as the Michigan Consumer Protection Act and various provisions in the Michigan Compiled Laws, regulate practices like debt collection, interest rates, and the rights of creditors to seek repayment through the courts. Federal laws, including the Fair Debt Collection Practices Act (FDCPA) and the Truth in Lending Act (TILA), provide additional protections for debtors, such as prohibiting abusive debt collection practices and requiring clear disclosure of credit terms. These laws work together to ensure a fair and regulated environment for credit transactions in Michigan.