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MI SB0830
Bill
AI Summary
- Allows licensed deferred presentment service providers (payday lenders) to make small loans up to $2,000 with terms between 90 and 365 days, payable in substantially equal installments
- Creates the Consumer Education and Financial Services Access and Literacy Fund, funded by a new literacy fee of up to $200 on license applications and renewals
- Requires licensees to assess a customer's debt-to-income ratio before making small loans, considering major financial obligations, basic living expenses, and projected net income
- Expands the statewide database to track both deferred presentment service transactions and small loans in real time to prevent customers from having multiple overlapping loans
- Prohibits renewal of small loans (refinancing with proceeds of another small loan) and limits customers to one small loan or deferred presentment transaction at a time
Legislative Description
Financial institutions: small loan companies; licensed providers of deferred presentment service transactions to make certain small loans; allow. Amends title & secs. 2, 11, 13, 15, 17, 19, 22, 31, 32, 33, 34, 35, 36, 45, 48 & 53 of 2005 PA 244 (MCL 487.2122 et seq.) & adds secs. 24, 25, 31a & 32a.
Consumer protection: other
Last Action
Referred To Committee On Finance, Insurance, And Consumer Protection
3/10/2026
Committee Referrals
Finance, Insurance, And Consumer Protection3/10/2026
Full Bill Text
No bill text available