Attorney General Nessel Re-Issues Consumer Alert on Sudden Business Closures

LANSING – As the Department of Attorney General’s Holiday Scams campaign continues, Michigan Attorney General Dana Nessel is re-issuing her consumer alert, Business Sudden Closure - Protect Yourself, to inform residents of their options if a company they have done business with closes unexpectedly. 

These closures can leave customers without the goods or services they have paid for, often creating financial and logistical challenges. The Attorney General’s alert lists several critical steps that consumers can take to limit their losses. 

“Unexpected business closures are disruptive and often leave consumers vulnerable,” said Nessel. “Acting swiftly to protect your finances and privacy can make all the difference for your peace of mind. We’re here to help ensure Michigan residents navigate these challenges and safeguard their rights.” 

When faced with the sudden closure of a business, take these steps, depending on how you paid for the item or service: 

• If you paid by credit card, contact your credit card company immediately to dispute the charges for any undelivered goods or services.
• If you have not received the goods or services paid for by check, ask your bank to initiate a stop payment on any outstanding checks.
• If you signed a financing agreement, dispute payments with the finance company for items not received.
• If you authorized automatic payments, cancel future withdrawals through your financial institution.
• If you purchased insurance for medical devices, alert your insurance provider if a covered device was affected. 

Consumers should act promptly to protect their rights by: 

• Gathering all receipts, invoices, and records of transactions.
• Attempting to contact the company’s headquarters or customer service line.
• Lodging a formal complaint on the company’s website.
• Filing a complaint with the Attorney General’s Consumer Protection Team at 877-765-8388 or through the online complaint portal. 

Even after a sudden closure, businesses are legally required to safeguard your personal information, including medical records. If a healthcare provider closes: 

• Contact the office to request your records or have them sent to another provider.
• Contact the Department of Attorney General for assistance if you cannot reach the business.

Business owners should consult a private attorney to ensure compliance with state and federal laws regarding record protection and to avoid enforcement actions. 

To minimize potential losses, before making a purchase, consumers should: 

• Research the Business: Check reviews, and company history, and consult the Attorney General’s Consumer Protection Team or Better Business Bureau for any complaints.
• Limit Upfront Payments: Pay only what is necessary to secure an order, and use a credit card for added security.
• Review Contracts Carefully: For ongoing services, request monthly payment options rather than prepaying in full.