State Passes Law to Regulate Payday Loans

Published on:
12 September 2006 at 10:20 a.m. ET

Written by: Unknown Author –

http://www.insidearm.com/news/00007207-state-passes-law-to-regulate-payday-loans/

Gov. Jennifer Granholm signed legislation Monday that will regulate the payday lending industry in Michigan by limiting loan amounts and capping finance charges.

Starting June 1, the new law limits borrowers to a maximum $600 loan in a 31-day period and lets lenders charge service fees between 11 percent and 15 percent, depending on the loan’s size. For example, someone borrowing $100 could be charged up to $15; a $600 loan would cost no more than $76.

For this complete story, please visit Granholm signs bill to regulate payday loans.