Sued by IC System in Michigan? Here's What to Do Next
Michigan RESPONSE DEADLINE
21 Days
from the date you were served
STATUTE OF LIMITATIONS
6 Years
for typical IC System debts in MI
WAGE GARNISHMENT
Allowed — up to 25%
What Michigan consumers say about IC System
In the last 24 months, 287 Michigan residents filed CFPB complaints naming IC System . 76% of these complaints involve debt collection; 24% involve credit reporting or other personal consumer reports.
Most common complaint categories:
- 112 Attempts to collect debt not owed
- 45 False statements or representation
- 36 Incorrect information on your report
Source: CFPB Consumer Complaint Database , 24-month rolling window through May 2026.
About IC System
IC System is one of the oldest and largest debt collection agencies in the United States, founded in 1938. They collect on behalf of healthcare providers, utilities, telecommunications companies, and financial institutions. IC System has a significant number of CFPB complaints and has been involved in FDCPA litigation for practices including reporting disputed debts and pursuing debts consumers do not owe.
Type: Collection Agency. Common debt types: medical, utility, telecom, credit card.
CFPB Enforcement History
I.C. System, Inc. is a third-party debt collector based in St. Paul, Minnesota that has operated since 1938 and is one of the highest-volume collectors in the country. We could not identify a public CFPB consent order or formal CFPB enforcement action against I.C. System, but the company has been named in numerous private FDCPA lawsuits and the CFPB's complaint database contains thousands of consumer complaints, primarily about attempts to collect debt the consumer says is not owed.
Michigan-Specific Defenses Against IC System
Statute of Limitations Defense
In Michigan, the statute of limitations for credit card debt is 6 years. If your last payment was more than 6 years ago, the debt is time-barred. Verify when your last payment or account activity occurred and raise the SOL defense in your Answer if applicable.
Challenge the Amount
Demand a complete accounting from the original creditor's last statement through the current claimed balance. Any unauthorized fees, post-charge-off interest, or collection costs not in the original agreement should be disputed line by line.
Michigan Wage Garnishment Exemptions
Greater of 75% of disposable earnings or 30x federal minimum wage exempt.
Michigan Collection Practices Act / Michigan Consumer Protection Act
In addition to the federal FDCPA, Michigan's Michigan Collection Practices Act / Michigan Consumer Protection Act may provide additional protections and remedies against IC System's collection practices.
Michigan Court System
Small claims limit $6,500. District court up to $25,000. Circuit court for larger amounts. Filing fees in Michigan typically range $50-$260.
Common FDCPA Violations by IC System
- Collecting on medical debts that should have been covered by insurance
- Reporting medical collection accounts to credit bureaus before the required waiting period
- Failing to properly validate debts when disputed in writing
- Continuing collection on debts that were paid or settled
- Misidentifying the original creditor in collection communications
Statute of Limitations in Michigan
| Debt Type | SOL (Years) |
|---|---|
| Credit Card | 6 |
| Medical | 6 |
| Auto | 6 |
| Personal Loan | 6 |
| Written Contract | 6 |
| Oral Contract | 6 |
Frequently Asked Questions
Who is IC System?
IC System is one of the largest third-party debt collection agencies in the U.S. They have been in business since 1938 and collect debts for healthcare providers, utilities, and other companies.
IC System is collecting a medical debt — is this right?
Request validation and check with your insurance company. Many medical debts collected by IC System should have been covered by insurance or were billed incorrectly by the provider.
Can IC System affect my credit score?
Yes, IC System reports to all three major credit bureaus. However, medical debts have special protections — paid medical debts must be removed, and new medical debts cannot be reported for one year.
Should I pay IC System?
Do not pay without verifying the debt first. Request written validation, check if the amount is correct, and determine if the statute of limitations has expired before making any payment.
How long to respond in Michigan?
21 days from service to file your Answer.
What is the SOL in Michigan?
6 years for all contract types.
Does Michigan have its own debt collection law?
Yes. The Michigan Collection Practices Act provides additional protections for consumers.
Can wages be garnished in Michigan?
Yes. Federal limits apply.
Is the collection agency calling me licensed in Michigan?
If they are a third-party collection agency (not the original creditor), they need a Michigan license under MCL 339.904, part of the Occupational Code's Collection Practices article. The Michigan Department of Licensing and Regulatory Affairs (LARA) maintains a public licensee search. If you find that the collector calling or suing you is not licensed in Michigan, that is a major problem for them: unlicensed collection activity is a misdemeanor under MCL 339.601 and gives you civil claims under MCL 339.916 (treble damages or $150 plus attorney's fees). It can also be a defense to the underlying debt - some courts have dismissed suits brought by unlicensed collectors. Original creditors collecting in their own name are exempt from licensing but still subject to the RCPA (MCL 445.251), so you have leverage either way. Always check licensing first, file a complaint with LARA if the collector is unlicensed, and document every contact to support a private suit under the Occupational Code and the federal FDCPA.
What is the statute of limitations on credit-card debt in Michigan?
Michigan has a 6-year statute of limitations on most contract and open-account debt under MCL 600.5807(8). That covers credit-card debt, store-card debt, personal loans, and most installment contracts. The clock runs from the date of breach - generally the date of last payment or charge-off. Michigan law (MCL 600.5866) allows partial payment or written acknowledgment to restart the clock, so do not pay anything on an old debt or make a written promise to pay without first confirming the dates. If a collector sues you on a debt past the 6-year SOL, plead the statute of limitations as an affirmative defense in your answer - it is a complete defense if raised on time, but it can be waived if you do not raise it. Michigan also treats suit on a time-barred debt as a potential violation of the federal FDCPA and the RCPA, so a stale suit may be both a defense and a counterclaim. Check the dates carefully before responding to any Michigan collection notice.
Can a collector garnish my Michigan paycheck?
Yes, but only after suing and obtaining a judgment, and then subject to state and federal limits. Michigan follows federal law's 25% cap on disposable wage garnishment under 15 U.S.C. § 1673 and MCL 600.4015. Michigan also limits garnishment to the lesser of 25% of disposable earnings or the amount above 30 times the federal minimum wage. Garnishments are typically issued for 90 days at a time and must be re-issued by the creditor. Several categories of income are fully exempt: Social Security, SSI, VA, unemployment, workers' compensation, and most public assistance. Michigan also exempts $1,000 in a checking or savings account if certain conditions are met. If you receive a garnishment, file an Objection to Garnishment with the court within 14 days (MCR 3.101). Common grounds include exempt funds, lack of valid service of the underlying suit, the SOL having expired, or the collector lacking standing or proper licensing. Michigan Legal Aid and many consumer attorneys take these cases under fee-shifting laws.
How does Michigan's RCPA differ from the federal FDCPA?
The biggest difference is scope. The federal FDCPA (15 U.S.C. § 1692a(6)) generally exempts original creditors collecting their own debts - it applies primarily to third-party collectors and debt buyers. Michigan's Regulation of Collection Practices Act (MCL 445.251) covers "regulated persons," which has been interpreted to include original creditors. That means a Michigan consumer harassed by a credit-card issuer collecting its own debt has remedies under state law that federal law does not provide. Both statutes prohibit similar conduct: false threats, harassment, misrepresentation of amounts, contacting consumers after a stop request, communicating with third parties, etc. The RCPA's remedies (MCL 445.257) include actual damages, the greater of $50 per violation or three times actual damages (treble damages), and attorney's fees and costs - and willful violations carry enhanced penalties. Combining FDCPA and RCPA claims often produces stronger leverage than either alone. Michigan attorneys frequently file dual-track claims when the collector qualifies under both.
Can a Michigan car-loan deficiency be collected after repossession?
Often yes, but with specific conditions. Under Michigan UCC Article 9 (MCL 440.9601 et seq.), after a vehicle repossession the lender must (1) give the borrower written notice of the planned sale of the collateral, (2) sell the vehicle in a "commercially reasonable" manner, and (3) properly account for the sale proceeds. If the sale proceeds plus your payments are less than the loan balance, the lender can sue you for the deficiency - the gap between what you owed and what they recovered. But many Michigan deficiency suits fail because the lender skipped a statutory step. Common defenses: defective notice (wrong content, wrong timing, wrong delivery), commercially unreasonable sale (sold at wholesale to a related party, sold without effort to maximize price, etc.), or improper accounting. Under Michigan UCC § 440.9626, if the lender fails to follow Article 9 procedures, the deficiency can be reduced or eliminated entirely. The SOL on UCC contract deficiency claims is generally 4 years under MCL 440.2725 or 6 years under MCL 600.5807, depending on classification. Always review the notice and sale documents carefully.
Sued by IC System in Another State?
IC System files cases nationwide. Select your state for the response deadline, statute of limitations, and state-specific defenses.
Sued by a Different Collector in Michigan?
The 21-day Michigan response deadline applies no matter who sued you. Pick the creditor on your summons for creditor-specific defenses.
This page summarizes public information from the CFPB Consumer Complaint Database, CFPB enforcement records, and Michigan state law. It is not legal advice. Statutes and court rules change — consult a licensed attorney in Michigan for guidance on your specific case.
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