Payday loans are legal in Michigan, but there are measures in place to prevent a borrower from entering a cycle of debt. If a borrower is unable to pay the loan back on time, they can request an installment plan to pay it off. Typically, lenders charge $15 for that.
Lenders are allowed to charge a maximum $25 NSF check fee. Borrowers also may notify a lender by mail if they think the lender is not following the law. If a lender is found to be in violation, they can be penalized up to five times the loan fee, with a minimum of $15.
Regulating the fine line of payday lending in Michigan is the 2006 Michigan Compiled Laws.
We at PayDayAllDay strongly suggest our consumers to do their research, and carefully analyze and compare the terms of services, rates, fees, and other conditions offered by several lenders before engaging in any borrowing activity.
