• Sat. Aug 13th, 2022

Michigan coalition plans campaign to cut payday loan consolidation rates

Lansing – A coalition of Michigan groups has taken the first step in launching a petition campaign to dramatically reduce the rates payday lenders can charge customers for payday loan consolidation

Last Wednesday, a ballot proposal committee called Michiganders for Fair Lending submitted the wording of its petition to the State Department. The group hopes to use the state initiative process to collect 340,047 signatures and submit its proposal to voters in November 2022.

“We are a Fair Lending Coalition for Michigan,” said Pastor Dallas Lenear of Journey Church of Grand Rapids. “Together, we are working to protect consumers and end abusive payday lending practices.

“Proverbs 22:22 says ‘Don’t exploit the poor for being poor.…’ Yet that is precisely what the predatory payday lenders are doing here in Michigan.”

The practices of payday loan consolidation”}” data-sheets-userformat=”{“2″:8705,”3”:{“1″:0},”12″:0,”16″:10}”>payday loan consolidation lenders have been a subject of debate in Lansing for years. In 2020, Michigan House approved a bill that would have more than quadrupled the amount short-term lenders could lend at any given time. But the legislation stalled in the state Senate.

Under Michiganders for Fair Lending’s proposal, service fees charged by lenders would be capped at an annual percentage rate of 36%. According to the group, some Michigan lenders are currently charging fees as high as 370% APR.