Payday loan provider proposal would only harm citizens that are vulnerable
The harms of payday financing have already been well documented, while the Michigan Legislature is currently poised to deliver those loan providers with another tool which could cause damaging monetary effects to the state’s communities that are already vulnerable.
May 27, the Michigan home of Representatives authorized House Bill 5097, authorizing a unique long run, high cost “small” loan product by “deferred presentment solution deal providers,” better referred to as payday loan providers. The proposed legislation allows payday loan providers to make loans all the way to $2,500, with month-to-month costs of 11 % for the principal of this loan, comparable to an APR of around 132 %. Read more →