Senate Bill 830 Citizen Co-sponsor
As families across Michigan face rising costs for housing, food, and utilities, unexpected expenses can quickly strain household budgets. Too often, existing lending options come with sky‑high interest rates and loan structures that make them difficult to pay off, trapping borrowers in cycles of debt. This legislation updates Michigan’s lending laws to better reflect today’s economic realities—preserving access to emergency credit while putting commonsense consumer protections in place so borrowers can repay loans without falling further behind.
What the Bill Does
- Caps interest rates to prevent excessive costs: Sets a 50% APR cap on both traditional payday loans and small‑dollar loans, significantly reducing costs compared to current triple‑digit rates.
- Expands access to safer small‑dollar loans: Allows loans up to $2,000 with longer repayment periods, making payments more manageable for people facing short‑term financial emergencies.
- Requires lenders to assess ability to repay: Ensures loans are based on documented income and living expenses so borrowers can meet basic needs after paying back the loan.
- Stops debt traps before they start: Prohibits loan rollovers and requires meaningful principal repayment before a loan can be renewed.
- Strengthens consumer protections and oversight: Adds an online complaint option through the state regulator and creates a fund to support financial education and literacy programs in local communities.