Michigan lawmakers are tackling payday loans, aiming to set standards for them and their maximum interest rates.
The House Insurance and Financial Services Committee is discussing Senate Bill 632, which would cap annual interest rates at 36%, compared to current rates reaching nearly 400%.
Dallas Lenear, director of Project GREEN — a grassroots economic empowerment network — highlights concerns about the exploitative nature of these loans.
“Payday loans inevitably are designed in a fashion that is unaffordable for the majority of people who use those loans,” Lenear said.
Lenear says many other states have already capped their interest rate or outright outlawed payday loans because of the financial damage they can cause their citizens. He argues it’s time for Michigan to do better.
