Earth Notes
(2006-05-28)
ANN ARBOR, MI
(Michigan Radio) -
June First, new regulations take effect for Payday Lenders in Michigan. The new rules are intended to regulate a previously unregulated industry.
The state office of Financial and Insurance Services is busy processing more than 400 applications for special payday lender licenses.
Largely operating out of small storefront businesses, payday lenders offer short term loans with sometimes costly fees or high interest rates.
State officials admit, until this year, the industry was unregulated in Michigan.
Labor department spokeswoman Kathy Fagan concedes state officials are not sure how big the industry is.
Among other things, Michigan's new regulations limit payday lender rate to a maximum of 15 percent of the amount of money borrowed. © Copyright 2012, Michigan Radio
