{"id":7321,"date":"2024-03-27T12:30:04","date_gmt":"2024-03-27T16:30:04","guid":{"rendered":"https:\/\/senatedems.com\/brinks\/?p=7321"},"modified":"2024-04-08T12:42:34","modified_gmt":"2024-04-08T16:42:34","slug":"payday-lending","status":"publish","type":"post","link":"https:\/\/dev.senatedems.com\/brinks\/2024\/03\/27\/payday-lending\/","title":{"rendered":"Senator Brinks, Statewide Consumer Advocates Support Democratic Legislation to Reform Predatory Payday Lending\u00a0"},"content":{"rendered":"\n[et_pb_section fb_built=”1″ theme_builder_area=”post_content” _builder_version=”4.22.2″ _module_preset=”default”][et_pb_row _builder_version=”4.22.2″ _module_preset=”default” theme_builder_area=”post_content”][et_pb_column _builder_version=”4.22.2″ _module_preset=”default” type=”4_4″ theme_builder_area=”post_content”][et_pb_text _builder_version=”4.22.2″ _module_preset=”default” theme_builder_area=”post_content” hover_enabled=”0″ sticky_enabled=”0″]
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Senate Bill 632 caps payday lending interest rates to alleviate economic disparities throughout Michigan communities.<\/span><\/i><\/b>\u00a0<\/span><\/p>\n

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LANSING, Mich. (March 26, 2024) \u2014 Earlier this month, Michigan Senate Democrats passed <\/span>Senate Bill 632<\/a><\/span> with bipartisan support to cap interest rates on payday lending loans. Garnering support from over 100 local and statewide organizations, this legislation aims to protect vulnerable consumers from predatory payday lending practices that perpetuate financial distress and generational debt in communities across the state.<\/p>\n

<\/span>\u201cIt is well past time that we put Michigan on par with 20 other states and Washington D.C. by limiting the annual percentage rate that payday loan providers can charge consumers,\u201d Senate Majority Leader Winnie Brinks<\/b> (D-Grand Rapids) said. \u201cOur caucus is proud to have taken tangible action to promote economic opportunity and provide real relief for our constituents.\u201d<\/p>\n

<\/span>Right now, payday lenders can charge interest rates as high as 370% to Michiganders who are already struggling to get by. In fact, those who utilize payday lenders are more likely to file for bankruptcy and reborrow on the same day a previous loan is repaid.<\/p>\n

<\/span>\u201cAlmost 80% of those that Project GREEN surveyed about the impact of payday lending said that their payday loan made their financial situation worse than before the loan,\u201d said Dallas Lenear<\/b>, Executive Director\/Founder of Grand Rapids-based Project GREEN. \u201cPayday loans are like prescribing poison to people who are sick. It\u2019s making it worse in the long run.\u201d<\/p>\n

<\/span>By passing this important legislation championed by Senator Sarah Anthony <\/b>(D-Lansing) which will cap interest rates at 36%, Michigan Senate Democrats are taking action to reverse the negative effects of payday lending to better the lives of people in every Michigan community.<\/p>\n

<\/span>This issue not only has strong bipartisan support in the Legislature, but also the backing of numerous consumers, financial experts, and more than 100 community advocates from all over the state, including the following organizations from our Grand Rapids community:\u00a0<\/span><\/p>\n