Michigan Senate Votes For Tougher Payday Loan Regulations
By Danielle MasonPayday Loan Writer
Lansing, MI — The Senate voted Tuesday to approve a bill that would regulate the payday loan industry by limiting amounts of the cash loans and capping finance charges. But the House wanted to take a closer look at some provisions included by the Senate and sent the bill to a conference committee where the two chambers will hammer out their differences.
Michigan is one of just 14 states without a payday lending law, according to the National Conference of State Legislatures.
The legislation would limit borrowers to a maximum $600 loan in a 31-day period and let lenders charge service fees between 11 percent and 15 percent. For example, someone borrowing $100 would owe $15; a $600 loan would cost $76.
The Senate voted 31-6 to send the bill to the House, which shipped it to a House-Senate conference committee on a 59-48 vote. Democratic Gov. Jennifer Granholm had been expected to sign the compromise legislation. She vetoed a payday lending bill in early 2004, citing concerns that its interest rate cap was not stringent enough.
