Michigan Payday Loans

Michigan residents can choose from Michigan licensed, out-of-state licensed, tribal-based and foreign-based lenders for their payday loans.

The Payday Hound strongly prefers licensed payday lenders as the Michigan Office of Financial and Insurance Regulation evaluates, regulates, and monitors the payday loans made by these lenders. See Michigan Payday Loan Laws for more details on Michigan laws and regulations or Payday Loans for more general information.

Unlicensed payday lenders include tribe-based lenders, lenders licensed in other states, and foreign-based lenders. Tribal and out-of-state licensed payday lenders operate under the interpretation that they can export their tribe or state laws into Michigan and are required to adhere to federal lending laws but not Michigan regulations. Federal laws may be less restrictive and less frequently enforced. The final group of lenders is foreign-based payday loan lenders. They export their countries' laws into Michigan and are highly unregulated. See How to Choose A Payday Loan for more details.

The above is our understanding of how payday lending works in Michigan, but we are not a law firm. Please contact the Michigan Office of Financial and Insurance Regulation for more information.

What Are Payday Loans

Michigan payday loans are short-term employment-based loans. They do not require collateral and are typically available to people with all types of credit. Funds can be deposited into your checking account overnight. Full payment is due your next pay period. Fees range from around $9 to $45 per $100 borrowed. For example, if $300 is borrowed, then $327 to $435 will be automatically deducted from your account on your next pay period. If the full deduction is made, the loan is paid in full and you are done. If you are unable to pay in full some lenders allow loan renewals usually at the same rate. You will pay fees on the unpaid fees from the previous period. Now, at your next payday (the second payday since you took the loan) $356 to $631 will be automatically deducted from your account. The fees add up fast. Please be careful with these loans. If you think you will be unable to pay the loan off in one or two pay periods it might make sense to consider Michigan installment loans

Licensed Versus Unlicensed Lenders

We prefer Michigan lenders licensed in your state because they are typically more closely regulated and monitored. State-licensed lenders generally must apply, register, and remain compliant in every state in which they operate. As a result, state-licensed lenders are typically larger more permanent companies.

Unlicensed payday loans operate in Michigan by exporting laws from their state or tribe into Michigan. Tribes are formally recognized American Indian Tribes and generally treated as separate federal entities that operate under their own laws. We have seen an increase in the number of tribal-based lenders. The Payday Hound believes in transparent markets, fair regulations, and consumer choice. To the extent, the existence of tribal lenders increase consumer choice we like this. The creation of the self-regulating Native American Financial Services Association (NAFSA) is also a good thing. We hope to see continued transparency and enforcement to create safer choices for borrowers. For more information see Michigan Payday Loan Laws.

The above is our understanding of how payday lending works in Michigan, but we are not a law firm. Please contact the Michigan Office of Financial and Insurance Regulation for more information.

The Payday Hound reviews Michigan payday lenders and ranks them according to our Sniff Test, costs, and features. Being included on our list is not an endorsement or certification.