Michigan Payday Loan Laws
 | Max Term of Payday Loan: | 31 days | | Max Fees and Finance Charges: | 15% of $0-$100; 14% of $101-$200; 13% of $201-$300; 12% of $300-$400; 11% of $400- $600 + a database verification fee | | Maximum Loan Amount: | $600 | | Number of Rollovers: | None (cannot renew) | | Outstanding loans allowed at one time: | 1 per lender; 2 total | | Cool-off period: | Not specified | | Military Protection: | Not specified | | Payment Plan: | Yes | | Limits on collection and presentment: | Not specified | | Collection fees: | One $25 NSF fee per transaction | | Presentment Limit: | Not specified | | Penalties: | Civil Fines, Suspension or revocations of license; Cease and Desist Order; Criminal | | Private right of action: | Yes |
Michigan Payday Loan Laws:
New legislation, the Deferred Presentment Service Transactions Act (H.B. 4834)signed by Governor Granholm will regulate payday lending in Michigan by limiting loan amounts to 600 in a 31 day period and allow lenders to charge up to 15% depending on the size of the loan. Borrowers are allowed only one loan at a time. The law requires all payday lenders to be licensed by June 1, 2006, by the Office of Financial and Insurance Services. The law establishes a statewide database for lenders to determine if customers have other open transactions; and allows borrowers to file complaints with the state. The law permits payday lenders to charge service transaction and service fees for each transaction.
| Payday Loan Laws: |
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