Legal Question in Credit and Debt Law in Michigan

This week I received a call from a collection agency who claimed I had defaulted on a pay day loan in 2006. Over the past 3 days, I have been in contact with them and today was able to verify the debt was valid. Earlier today I received a message from a man who said he was from the summons and warrant division of our court house, stating that a complaint was filed against me and was mailed to a po box I had back in 06, but no longer have. He was encouraging me to settle this debt with the collection agency, before charges were placed. I again spoke with collection company to work out a payment plan to pay this off and they wanted a huge amount initially. I told them I was disability and could pay a smaller amount today, and the rest on the first of the month. The rep from the collection agency then came back with several offers all of them much larger than I am able to pay at this time. She then said that it is going to go to court and there was nothing I could do about it.

My questions are:

Can they issue a warrant for my arrest?

What is the statue of limitations for collection on a debt like this in Michigan?

Should I be contacting an attorney asap to handle this as I have tried to work it out with the agency?

I have tried to google my questions, but feel LawGuru would be more accurate in the response.

Thank you for taking the time to read my post.

1 Answer from Attorneys

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