Senate Bill 632 will cap payday lending interest rates at 36%, address economic disparities
LANSING, Mich. (March 7, 2024) – Yesterday, the Michigan Senate Finance, Insurance, and Consumer Protection Committee reported Senate Bill 632 favorably. The bipartisan legislation, sponsored by Sen. Sarah Anthony (D-Lansing), would cap interest rates on payday loans in Michigan at 36%. This comes after the committee heard several personal stories and testimony from stakeholders and residents.
“I am incredibly proud of the committee action taken to address predatory payday lending,” said Sen. Anthony. “This signifies a significant step towards protecting the financial well-being of communities across Michigan, especially those from marginalized populations and residents in rural areas who are often the most affected by these exploitative practices. I am committed to promoting economic justice for all Michiganders, and I am hopeful that this legislation will lead to long-term financial empowerment.”
If passed, this legislation will align Michigan with 20 other states and the District of Columbia. The Community Economic Development Association of Michigan, the Michigan Catholic Conference, Project: Green, the Center for Responsible Lending, and advocates and groups from around the state have shown support for this bill.
“During this National Consumer Protection Week, I am proud that we’ve taken action to provide real, beneficial relief for struggling residents by reining in unsustainable interest rates,” said Sen. Mary Cavanagh (D-Redford Twp.), Chair of the Senate Finance, Insurance and Consumer Protection Committee. “I appreciate the individuals and more than a hundred organizations that shared their perspectives with our committee and voiced their support of this legislation. Our vote to move this bill one step closer to becoming law will protect financially vulnerable residents against predatory practices.”
Interested residents are encouraged to visit SenatorAnthony.com to share their story and become a citizen cosponsor to help restore “Justice in Lending.” The bill now moves to the full Senate for further consideration.
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