Midwest · Allowed
Payday loans in Michigan
Storefront payday lending is permitted in Michigan. State law caps what lenders can charge — the limits below are the legal ceiling, and honest lenders stay under it.
The limits below are the legal ceiling — any offer above them is being made outside the law.
The rules behind the numbers
A deferred presentment service transaction is not intended to meet long-term financial needs.
In practice: borrow $300 for a standard term and the finance charge is $42 — $342 repaid at the end, about 365% APR. Every compliant lender in Michigan has to fit inside that schedule.
Statute: MCL 487.2121 et seq. (Deferred Presentment Service Transactions Act)
Regulator: Michigan Department of Insurance and Financial Services · www.michigan.gov
Questions people ask here
How much can a payday loan cost in Michigan?
State law caps fees at 15% on first $100, 14% on 2nd $100, 13% on 3rd $100, 12% on 4th $100, 11% on 5th & 6th $100. On a typical $300 loan that works out to about $42 in finance charges — repaying $342 in total. A lender charging more than the cap is operating illegally.
What happens if I can't repay on time in Michigan?
This state's rules on rolling the loan over: forbidden. If you can't pay, ask the lender for an extended payment plan before you renew — and call the state regulator if the plan is refused.
Are online payday lenders legal in Michigan?
Only lenders licensed in Michigan may make loans to residents at these terms — the license, not the website, decides what's legal. Out-of-state lenders offering terms above the state cap are operating outside the law.
Who regulates payday lenders in Michigan?
Complaints about a licensed lender go to the Michigan Department of Insurance and Financial Services (www.michigan.gov) — keep the loan agreement and every fee disclosure you were given.