Senate Bill 632 caps payday lending interest rates to alleviate economic disparities throughout Michigan communities. 


LANSING, Mich. (March 26, 2024) — Earlier this month, Michigan Senate Democrats passed Senate Bill 632 with bipartisan support to cap interest rates on payday lending loans. Garnering support from over 100 local and statewide organizations, this legislation aims to protect vulnerable consumers from predatory payday lending practices that perpetuate financial distress and generational debt in communities across the state.

“It is well past time that we put Michigan on par with 20 other states and Washington D.C. by limiting the annual percentage rate that payday loan providers can charge consumers,” Senate Majority Leader Winnie Brinks (D-Grand Rapids) said. “Our caucus is proud to have taken tangible action to promote economic opportunity and provide real relief for our constituents.”

Right now, payday lenders can charge interest rates as high as 370% to Michiganders who are already struggling to get by. In fact, those who utilize payday lenders are more likely to file for bankruptcy and reborrow on the same day a previous loan is repaid.

“Almost 80% of those that Project GREEN surveyed about the impact of payday lending said that their payday loan made their financial situation worse than before the loan,” said Dallas Lenear, Executive Director/Founder of Grand Rapids-based Project GREEN. “Payday loans are like prescribing poison to people who are sick. It’s making it worse in the long run.”

By passing this important legislation championed by Senator Sarah Anthony (D-Lansing) which will cap interest rates at 36%, Michigan Senate Democrats are taking action to reverse the negative effects of payday lending to better the lives of people in every Michigan community.

This issue not only has strong bipartisan support in the Legislature, but also the backing of numerous consumers, financial experts, and more than 100 community advocates from all over the state, including the following organizations from our Grand Rapids community: 

  • New Development Corporation 
  • LINC Up Nonprofit Housing Corporation 
  • Habitat for Humanity Kent County 
  • Kent County Essential Needs Task Force 
  • Project GREEN 
  • Family Promise of West Michigan 
  • Grand Rapids Housing Commission 
  • Access of West Michigan 
  • Together West Michigan 
  • Heart of West Michigan United WAY

Michigan Senate Democrats remain committed to lowering costs and protecting our constituents from financially exploitative practices that intentionally target our most marginalized communities.