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Capped at $600 with a tiered service fee — $76 on the maximum loan. Two loans at a time, from different lenders. And if a lender breaks the rules, you can sue and recover your legal costs.
A Michigan payday loan carries no interest. It carries a service fee, calculated in $100 bands: 15% on the first $100, 14% on the second, 13% on the third, 12% on the fourth, and 11% on the fifth and sixth.Michigan · RegulatorMichigan DIFS — the service fee cannot exceed the aggregate of 15% for the first $100, 14% for the second, 13% for the third, 12% for the fourth, 11% for the fifth and 11% for the sixth $100
On the maximum $600 loan that comes to $76. On a two-week term that is well over 300% annualised, which is why the fee framing matters — it is designed not to look like a rate.
Michigan permits two payday loans at a time, provided they are with different lenders, and caps each at $600 excluding fees. Lenders must verify your eligibility before lending.Michigan · RegulatorMichigan DIFS — a customer can have no more than two payday loans at a time; they cannot be with the same payday lender; and each loan is limited to $600, not including the fees
Michigan law provides that a person injured by a payday lender who violates the Deferred Presentment Service Transactions Act may file suit to recover actual damages and reasonable attorney fees.Michigan · RegulatorMichigan DIFS — a person injured by a payday lender who violates the Deferred Presentment Service Transactions Act may file suit to recover actual damages and reasonable attorney fees
The attorney-fee provision is the part that matters. Without it, a claim worth a few hundred dollars is not worth bringing — which is precisely why lenders can afford to break small rules.
The department states that online payday lenders are typically not licensed to do business in Michigan and generally charge rates well above the legal limit.
Verify any lender at michigan.gov/difs or on 877-999-6442 before borrowing. An unlicensed lender is operating outside the Act, whatever the agreement says.
You can revoke authorisation and instruct your bank to stop the payment, whatever your agreement says.
What Regulation E says about automatic payments →
Every figure carries the jurisdiction and the exact provision it came from. Click to open the source.
A payday loan is a consumer debt. If it goes unpaid, two Michigan rules decide what a lender can do next: how long it has to sue you, and how much of your pay a court can order taken.
Being sued over an old payday loan? A collector can still file, but the time limit is a defence you can raise — and you cannot be jailed for the debt. What can and cannot happen if you don’t pay →