Sued by National Credit Systems 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 National Credit Systems debts in MI
WAGE GARNISHMENT
Allowed — up to 25%
What Michigan consumers say about National Credit Systems
In the last 24 months, 217 Michigan residents filed CFPB complaints naming National Credit Systems . 76% of these complaints involve debt collection; 23% involve credit reporting or other personal consumer reports.
Most common complaint categories:
- 62 Attempts to collect debt not owed
- 45 False statements or representation
- 28 Took or threatened to take negative or legal action
Source: CFPB Consumer Complaint Database , 24-month rolling window through May 2026.
About National Credit Systems
National Credit Systems (NCS) is a collection agency that specializes in collecting apartment and rental debts, including unpaid rent, lease break fees, and property damage claims. NCS is frequently reported to the CFPB for inaccurate debt amounts and failure to validate debts. They work primarily with property management companies and landlords to collect after tenants have moved out.
Type: Collection Agency. Common debt types: rent, lease break, property damage, utility.
CFPB Enforcement History
National Credit Systems, Inc. is an Atlanta-based debt collector specializing in apartment, rental, and multi-family housing debt. In February 2023, the CFPB filed a petition in the Northern District of Georgia to enforce a Civil Investigative Demand against National Credit Systems, after the company refused to respond pending the Supreme Court's CFPB funding ruling. The CFPB's investigation is examining whether NCS made false or misleading representations to consumers, collected unlawful amounts in violation of the FDCPA and CFPA, and furnished inaccurate information to credit reporting agencies. As of this writing the investigation is ongoing and no consent order has been entered.
Michigan-Specific Defenses Against National Credit Systems
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 National Credit Systems'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 National Credit Systems
- Collecting inflated amounts that include improper charges not in the original lease
- Failing to account for security deposit credits owed to the tenant
- Reporting debts to credit bureaus without proper validation
- Collecting on lease-break fees that violate state landlord-tenant law
- Failing to provide itemized accounting when requested
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 National Credit Systems?
NCS is a collection agency that primarily collects debts for apartment complexes and property management companies, including unpaid rent, lease break fees, and damage claims.
Can they collect for lease break fees?
It depends on your lease and state law. Many states require landlords to mitigate damages by finding a new tenant. If they did not try, the lease break fee may be unenforceable.
What about my security deposit?
If your landlord did not return your security deposit or provide a proper itemization, this reduces or eliminates what you owe. Many NCS debts do not account for security deposit credits.
How do I dispute an NCS debt?
Send a written validation request within 30 days of their first contact. Demand an itemized accounting of all charges and credits. Compare it to your lease agreement and move-out records.
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 National Credit Systems in Another State?
National Credit Systems 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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