LANSING, MI ~ March 11, 2024 ~ Bills designed to cap payday lending interest rates in Michigan are gaining traction in Lansing.
The goal of these bills is to curb what some call the exploitative practices of lenders that target low-income communities, often trapping bowers in debt cycles that can lead to bankruptcy.
March 11, 2024 ~ Crain’s Detroit Business Managing Editor Mike Lee talks with 760 WJR‘s Guy Gordon, Lloyd Jackson, and Jamie Edmonds about the top business headlines of the week, including the City of Detroit preparing to host the NFL Draft, the higher housing prices in the area, the perils of payday lenders, and more.
(CONTINUED) “I am incredibly proud of the committee action taken to address predatory payday lending,” said Sen. Sarah Anthony, who authored one of the two bills being considered.
“This signifies a significant step towards protecting the financial well-being of communities across Michigan, especially those from marginalized populations and residents in rural areas who are often the most affected by these exploitative practices. I am committed to promoting economic justice for all Michiganders, and I am hopeful that this legislation will lead to long-term financial empowerment.”
Anthony’s bill (Senate Bill 632) went through the Committee on Finance, Insurance, and Consumer Protection last Thursday, with a bipartisan recommendation for the bill to pass.
If passed, the bill would limit payday lending rates to a cap of 36% annually, aligning Michigan with similar legislation enacted in 20 states and the District of Columbia. Those who currently borrow from payday lenders in Michigan pay as much as 300% annually.
Payday lenders say that they will discontinue doing business in Michigan, should either of the two bills pass.
You can keep up on the progress of these bills here:
