Regulator Details

Michigan Office of Financial and Insurance Regulation

P.O. Box 30220
Lansing, MI 48909
Phone: (877) 999-6442
Fax: (517) 335-4978

Michigan Payday Loan Laws

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Michigan Payday Loan Laws Details

The data provided here is for general informational purposes and should not be used as legal reference. If you have questions regarding Michigan payday loan laws contact the Michigan Office of Financial and Insurance Regulation.

Payday loans are legal in Michigan (see Michigan Payday Loans or Michigan Installment Loans to compare fees and requirements for individual lenders).

Feature Specification
Amount (max) $600
Rates or Fees (max) 15% of first $100, 14% of second $100, 13% of third $100, 12% of fourth $100, 11% of fifth $100, 11% of sixth $100 + any database verificationfee
Term Limitations Max: 31 days
General Loan Terms

In Michigan, no rollovers are permitted (cannot renew but lender may extend only if it does not charge a fee). Nothing is mentioned about cooling periods between loans. Michigan requires extended repayment plans.

For example, in Michigan the rates and fees on a 14 day, $100 loan are:

Terms Amount
Loan Amount $100
Fees $15
APR 390%
Sample Loan Terms

Michigan also defines regulations around collections. If available, the table below lists the fees lenders are permitted to charge if the loan is not repaid and/or whether a lender can threaten use of or use criminal action if a borrower is unable to repay a loan.

Feature Specification
Collection Fees One $25 NSF fee
Criminal Action Prohibited
Regulations on Collections
Finally, a more detailed excerpt from Michigan's statutes on finance charges is listed below. In general the tables above summarize this.

A licensee may charge the customer a service fee for each deferred presentment service transaction. A service fee is earned by the licensee on the date of the transaction and is not interest. A licensee may charge both of the following as part of the service fee, as applicable: (a) An amount that does not exceed the aggregate of the following, as applicable: (i) Fifteen percent of the first $100 of the deferred presentment service transaction. (ii) Fourteen percent of the second $100 of the deferred presentment service transaction. (iii) Thirteen percent of the third $100 of the deferred presentment service transaction. (iv) Twelve percent of the fourth $100 of the deferred presentment service transaction. (v) Eleven percent of the fifth $100 of the deferred presentment service transaction. (vi) Eleven percent of the sixth $100 of the deferred presentment service transaction. (b) The amount of any database verification fee allowed under section 34(5). 

Citation: Mich. Comp. Laws Sections 487.2121 et seq.