Now I have run across some interesting laws going from state to state in my research of payday loans, and the payday loan laws in Michigan state did not let me down in being unique.
Payday loans are legal in the state of Michigan,. and payday loan lenders in Michigan must be licensed.
On the surface it seems this state is out to protect the borrower. By enacting the Deferred Presentment Service Transactions Act (H.B. 4834), which limits payday loans to 60 days maximum in length, and caps the amount loan to $600.00 per payday loan.
This does limit the roll over time a lender may allow to each loan holder, as most borrowers roll over their payday loan between 4 to 5 times before retiring it. 30 days is still enough time to rack up huge interest and fee charges. A one week payday loan may be rolled over 3 times within 30 days, and this adds up fast!
Another part of the law that helps borrowers is the State of Michigan allows only one payday loan per borrower at any given time. Michigan has developed a statewide database and payday lenders are required by law to use this database when doing business with applicants of payday loans. ‘
You may also log complaints through this database on the lenders of payday loans.
Michigan has a bit of an unusual interest rate set up. 15% of the first $100, 14% of amounts $100-200 13% of amounts $200 – $300, 12% of $300-400 the fourth $100, 11% of amounts $400-$600 plus administrative fees, service fees, and service transaction fees that go along with each transaction and each roll over. They fee you to death!
While some of the laws of this state do help the borrowers, all in all this state still allows way to high of interest rates and still allows roll overs which can lead straight to finding yourself stuck in the payday loan trap.
You know the one I mean, where you have defaulted on your payday loan, you have bounced the payday loan check at your bank, which in turn has bounced checks all over town. The loan company is calling and threatening to take legal action, the bank is calling, the businesses are calling and on and on, all the while the interest rate charges are still growing.
Take a deep breath and call yourself a payday loan debt consolidation company . They can help you get some relief from this headache and get all these people to quit calling! They can work wonders in restoring some sanity when you end up in trouble with payday loan debt.
I hope this article on Michigan state payday loan laws helps you make informed decisions when considering payday loans in this state.
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