MultiGen Law Institute is a consumer-advocacy organization that helps Michigan borrowers understand the rules a subprime auto lender must follow. If American Credit Acceptance (ACA) financed your vehicle and you have fallen behind, Michigan law gives you specific rights before, during, and after a repossession. This page is general information about Michigan repossession law, not legal advice about your particular situation. Knowing these rules can help you spot when American Credit Acceptance or its repossession agent has cut a corner it was not allowed to cut.
This guide covers Michigan. For the full state-by-state breakdown, see American Credit Acceptance repossession laws in all 50 states.
When can American Credit Acceptance repossess your car in Michigan?
Michigan is a “self-help” repossession state under the Uniform Commercial Code. After you default, MCL 440.9609 allows American Credit Acceptance to take the vehicle without first going to court, but only if it can do so “without breach of the peace.” That means the repo agent may not use force or threats, break into a locked garage, or take the car over your face-to-face objection at the scene. Michigan’s Motor Vehicle Sales Finance Act reinforces this: MCL 492.114 bars any contract clause that authorizes entering your premises unlawfully or breaching the peace, and requires that repossession be carried out only in the manner set by Article 9 of the UCC. If American Credit Acceptance breaches the peace, the repossession may be wrongful and expose the lender to liability.
Notice, cure, and reinstatement rights in Michigan
Because your American Credit Acceptance loan is a motor-vehicle installment contract, the Motor Vehicle Sales Finance Act (MCL 492.101 et seq.) requires the contract itself to summarize your legal rights, including your right to reinstate the contract after repossession. Before American Credit Acceptance sells the car, MCL 440.9611 generally requires it to send you a reasonable authenticated notice of the planned disposition. For consumer vehicles, MCL 440.9614 spells out what that notice must contain, including a description of the vehicle, the time and place of any sale, and a telephone number you can call to learn the exact amount needed to redeem. Watch these notices closely, because defective notice is one of the most common ways lenders violate the rules.
After the repossession — sale, redemption, and your personal property
Under MCL 440.9623, you have a right of redemption: you may get the vehicle back at any time before American Credit Acceptance sells it or otherwise disposes of it, generally by paying the full amount owed plus reasonable repossession expenses. The eventual sale must be “commercially reasonable” in method, manner, time, place, and terms under MCL 440.9610. Michigan law does not let a lender keep the personal belongings left inside your car — those items are yours, and you are entitled to retrieve possessions such as tools, car seats, or documents that were not part of the collateral. Ask American Credit Acceptance in writing for the return of your personal property and keep a copy of the request.
Can American Credit Acceptance sue you for a deficiency in Michigan?
Yes, Michigan allows a deficiency judgment, but only if the lender followed the rules. After the sale, MCL 440.9615 applies the proceeds to the balance; if the car sold for less than you owed, American Credit Acceptance may pursue the remaining “deficiency.” However, if the lender failed to send proper notice or the sale was not commercially reasonable, MCL 440.9625 and 440.9626 can reduce or eliminate the deficiency and may entitle you to damages. In short, a lender that skips the notice or dumps the car at a lowball auction can lose its right to collect the shortfall from you.
How long can they collect? Michigan’s statute of limitations
Your American Credit Acceptance loan is a written contract, and MCL 600.5807(9) sets a six-year statute of limitations on suing for breach of a written contract or money due. That clock generally runs from your default or last payment, and once six years pass American Credit Acceptance (or a debt buyer that purchased the account) can no longer win a lawsuit on a time-barred deficiency. Be careful: making a partial payment or signing a new written promise to pay can restart the six-year period. If you are sued on an old debt, the age of the account may be a complete defense worth raising.
Your consumer-protection rights in Michigan
The Michigan Consumer Protection Act, MCL 445.901 et seq., prohibits unfair, unconscionable, and deceptive practices, and it can apply when a lender or its agents mislead you about your rights or the amount owed. The Michigan Attorney General has authority under MCL 445.905 to investigate and act against auto lenders and dealers, and the AG’s Consumer Protection Division accepts complaints from Michigan residents. Federal laws — the Fair Debt Collection Practices Act and the Fair Credit Reporting Act — add further protection when a collector or credit-reporting error is involved. Filing a complaint with the Michigan AG creates a paper trail even while you pursue your own claim.
Repossessed by American Credit Acceptance in Michigan? Here’s what to do
- Save every letter, notice, and text from American Credit Acceptance, especially the pre-sale notice and any redemption figure.
- Write down exactly how the repossession happened — was a garage entered, was there a confrontation, did you object?
- Request the return of any personal property left in the vehicle, in writing.
- Check whether the sale notice met MCL 440.9614 and whether the sale looked commercially reasonable.
- Consider filing a complaint with the Michigan Attorney General’s Consumer Protection Division.
- If you are sued, calculate whether the six-year limit under MCL 600.5807 has passed.
You are not the only Michigan borrower dealing with American Credit Acceptance. Review the class-action list to see whether current litigation matches your experience, and explore the pro-se kit for organized templates and step-by-step guidance if you plan to respond on your own.
MultiGen Law Institute is a consumer-advocacy organization, not a law firm, and no attorney-client relationship is created by using this page. This is general information about Michigan law and is not legal advice about your specific situation. Statutes and their interpretation change over time. For advice about your circumstances, consult a licensed Michigan attorney.
Get your free case review
Dealing with American Credit Acceptance — a repossession, a deficiency balance, collection calls, or a lawsuit? Get a free, no-obligation review of your situation. Add your case below and our team will tell you where you stand. Want to stay anonymous for now? Use a throwaway email — we only need a way to send your review.