LANSING, Mich. (WILX) — Payday loans could face much tougher regulation in November.
Michiganders for Fair Lending, a Grand Rapids-based policy advocacy group, submitted 405,625 signatures Wednesday afternoon to the Michigan Secretary of State in an effort to ask a question about the November 2022 ballot to reform predatory practices payday loan.
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“Payday lenders have used the lure of quick money to prey on vulnerable Michiganders for too long. These extreme interest rate loans are designed to trap people in an endless cycle of debt, and we’re giving voters a chance this fall to fix that problem,” said Josh Hovey, Michiganders spokesperson for Fair. Lending.
In Michigan, the typical payday loan carries the equivalent of a 370% annual percentage rate (APR). The Michiganders for Fair Lending proposal asks voters to approve capping payday loan interest rates at no more than 36% APR.
“These conditions trap Michiganders in a cycle of debt,” Hovey wrote in a statement. “According to the Consumer Financial Protection Bureau, 75% of payday loan fees are collected from borrowers with ten or more loans per year.”
Hovey said the canvassing team exceeded their goal and collected more than 575,000 signatures to ensure a significant buffer.
Next, the Board of State Solicitors will consider petitions from Michiganders for Fair Lending. The campaign must submit 340,042 valid voter signatures to qualify for the November 2022 ballot.
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