Michigan Payday Loan Laws and Regulations

Michigan Payday Loan Laws and Regulations

Are Payday Loans Legal in Michigan?

Short-term Payday Loans are Legal in the state of Michigan and are mostly regulated through Mich. Comp. Laws §§ 487.2121 et seq..

Deferred Presentment Service Transactions Act.pdf

The Payday Lending legislation covers all the parts of the process concerning:

  • Payday Loan amounts
  • Payday Loan repayment terms
  • Payday Loan online direct lenders
  • Payday Loan stores near you
  • Payday Loan interest rates and other fees
  • Payday Loan collecting practices
  • Payday Loan default penalties
  • The number of outstanding Payday Loans as well as a cooling-off period in-between etc.


The eligibility criteria for Payday Loans in Michigan are:

  • US residence
  • Minimum regular income of $1,000 per month
  • Valid checking or savings account with direct deposit
  • Phone number and e-mail address

Michigan Payday Loan Terms and Amounts

Michigan allows maximum $600 Payday Loan amount. It should be repaid within up to 31 days as you get your next paycheck. Earlier payments don’t contemplate any additional fees. You are likely to be charged $15 for a 14-day $100 loan taking into account the maximum APR of 390.00%.

However, there are no limits on the purpose of loan usage. Any urgent expenses, unforeseen bills, car repair, home repair, etc. may seem a sound reason to apply for a Payday Loan in Michigan.

If $600 is not enough, there are always other options to receive the necessary funds in Michigan:

  • Unsecured Installment Loans,
  • Bad Credit Personal Loans,
  • Title Loans,
  • Check Cashing,
  • Pawn Shops, etc.

Michigan Payday Loans online laws

Cash advances (payday loans) from both storefront and online lenders are legal in the state of Michigan. There are 650 payday lenders in Michigan. 

Reputable online lenders operating in accordance with all relevant state and federal laws can be applied to and compared on our platform using a simple online application form.

You state the necessary amount, fill in your personal information and get suitable offers from legit direct lenders. It takes only a few minutes and doesn’t affect your credit score. 

In case Payday Loan lenders violate Michigan laws, you can address  The Department of Insurance and Financial Services, P.O. Box 30220 Lansing MI 48909, Phone: (877) 999-6442, https://www.michigan.gov/.

Michigan Payday Loans interest rates, fees, and other finance charges

The main part of the payday loan payment is mostly made up of the interest rate, or APR. The maximum APR that may be charged for short-term cash advance in Michigan is 390.00%. It means that if you borrow $100 Payday Loan for 14 days the finance charges will be 15% – 11% of the loan amount.

Besides, the total cost of a Payday Loan includes some additional fees. Michigan lending rules allow to charge $25 NSF fee.

The law obligates Michigan Payday Loan lenders to provide you with a written disclosure of all the rates and fees in the understandable language. You should read them carefully and if you agree to acknowledge the notification by signing the contract.

Michigan Payday Loans direct lenders regulations 

The majority of payday stores in Michigan are run by only a few large companies. With over 550 payday stores in the state, the top 10 largest lenders operate 86.5% of all payday stores, with the top three largest lenders operating over half (52.1%) of all stores.

Payday Lenders Targeting Vulnerable Michigan Communities.pdf

In recent years, payday lenders have drained over half a billion dollars in fees from Michigan consumers to out-of-state companies. By charging APRs over 340%, payday lenders cost Michigan consumers over $94 million in 2016 and over $513 million over the past five years. Over two-thirds of Michigan payday stores have headquarters out of state.
Michigan payday lenders disproportionately locate their stores in communities of color. While statewide hee is 5.6 payday stores per 100,000 people in Michigan, payday store concentrations are higher in census tracts that have more African-Americans and Latinos. Census tracts that are over 25% and 50% African-American and Latino are 7.6 and 6.6 payday stores per 100,000 people, respectively.
Michigan payday lenders disproportionately locate their stores in rural and low-income areas. Rural census tracts have a payday store concentration of 7.1 stores per 100,000 people, while census tracts below 80% of the state’s median household income have 9.1 stores per 100,000 people.

You should be careful not to come across any scams. Some unfair lenders can operate without license or under a different license and offer too expensive ‘payday loans’ under illegal conditions. Always check that the lender you are going to apply to works under Michigan state law.

Michigan Payday Loans consumer information

Besides amounts, rates and fees, consumers must be also well aware of other details of Payday Loans in Michigan. They include the availability and number of rollovers, extensions and repayment plan, a cooling-off period, any default penalties or additional fees, etc. Check out the table below to find the most essential information:

Rollovers or extensions An extension or repayment plan
Cooling-off period None
NSF fee $25 NSF fee
Criminal actions Prohibited

Look for more detailed information on the official Michigan state regulator website –  The Department of Insurance and Financial Services, P.O. Box 30220 Lansing MI 48909, Phone: (877) 999-6442.

Legitimate Payday Loans online with NO credit check in Michigan

Looking for a legal Payday Loan with No credit check in Michigan? You must understand the meaning of this phrase correctly at first. No credit check implies that a lender will not inquire about your credit history information from or send your borrowing data to any of the three major credit bureaus Equifax, Experian, and TransUnion.

If you don’t want to damage your credit history Michigan law allows you to apply for a Payday Loan with No credit check. But you should understand that a lender needs to check your creditworthiness at least in some way. He can perform a soft credit check when a lender pre-approves you for a loan and this inquiry will not appear on your credit report. Or there’re other ways to prove you can afford the cash advance. Payday Loan lenders use the tracking system to verify your debts, check your income, etc. And generally, they charge higher interest to lessen the risks.

Michigan Payday loans online no credit check is one of the easiest options of getting quick cash to cope with emergency financial requirements, especially for the people with poor credit.

Does Michigan law allow Payday Loans for bad credit borrowers?

The average credit score in Michigan is 677, placing it in the good range. But it doesn’t mean that those who have a worse credit can’t apply for a Payday Loan in Michigan. 

  • First of all, There’re a lot of legit direct lenders in Michigan providing Payday cash advance to borrowers with both good and bad credit score.
  • Secondly, you can always find a cosigner to increase your chances of being approved for a bad credit Payday Loan.
  • Find out how to improve your credit score and do your best to do it fast. 
  • Or consider taking out a bad credit Installment Loan, or bad credit Personal Loan.

Legit Payday Loans in Michigan collection practices

If you can’t repay the loan amount plus interest on a due date it means you default the loan. When Michigan direct lender isn’t able to cash your check after the repayment term is over he may charge you an NSF fee. NSF fee means there are non-sufficient funds on your account. The amount charged is determined by the lender and stated in the agreement and may also be limited by the state’s Payday Loan law. In Michigan it’s $25 NSF fee.

What concerns collection practices, first of all, you may stay assured that any criminal actions are forbidden in Michigan. The law prohibits debt collectors from harassing or misleading a debtor.

If you think that your payday lender violates the Michigan Payday Loans law, you may file a written complaint with  The Department of Insurance and Financial Services, P.O. Box 30220 Lansing MI 48909, Phone: (877) 999-6442. The supervisor from that office interviews witnesses, reviews the payday lender’s business records and documentation, and determine whether to pursue civil or criminal charges.

Besides, if you are contacted by a Payday Lender for payment, remember that if the collector calls and threatens you on the phone, it’s 99% an offshore company. You can ignore everything they say, just hang upon them. If they call back, you may consider letting them know that you know that they are outside of the United States and have no rights to make any collections. Even if the debt collector is in the United States you should know that you won’t be arrested and no property of yours can be taken from you. They can’t do anything until they get a judgment against you. Now that most states have taken away their ability to sue debtors for three times the amount of the check, it is almost impossible for them to find attorneys to sue consumers.

Michigan Payday Loans news  – latest changes

Michigan lawmakers consider a bill that would allow payday lenders to offer longer term, higher dollar loans. Critics claim that it’s going to puts the most vulnerable Michiganders at risk.

House Bill No. 5097 would allow payday lenders in Michigan to make loans of up to $2,500 with no limit on the length of the loan. It can let lenders provide loans to individuals who already have a high-cost loan, and would permit the rollover of short-term payday loans into a longer-term loan.

Michigan Payday Loans historical background

2005 Deferred Presentment Service Transaction Act regulating all payday lending in the state was passed.
2006 Loans to the military were capped at 36% interest.
2017 It was proposed to inccrease loan amounts and terms but with no changes yet.
June 2, 20116 A Payday Loan Rule was proposed but still under consideration.
2019 No more current changes or proposals concerning Payday Loans.

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