Under Michigan law, a loan agreement must contain the following: the name, phone number, and address of the cash advance business, a detailed listing of the interest and fees imposed, a clear explanation of the borrower's payment duties to the payday advance creditor, and an example illustrating the sum a consumer pays for borrowing a certain loan amount. A consumer is not permitted to have more than two outstanding cash advance payday loans at a time with more than one payday loan per lender. Michigan law prescribes a private right of action for the lender but prohibits criminal action.
A borrower can request up to $600 in payday loan funds.
The loan term is 31 days.
Borrowers cannot rollover or extend their cash advance loans.
Michigan law allows check cash advance creditors to charge an administrative fee of $5 as well as a service fee per transaction, provided that it does not exceed a 25% annual interest rate. Payday loan businesses can charge a maximum finance fee of 15% depending on the amount of the loan. The finance fee for a two-week payday loan in the amount of $100 is $15.
The APR for a two-week loan valued at $100 is 390%.