Endorsements Surge for Michiganders for Fair Lending

Only Initiative to Meet State Petition Deadline

LANSING, MI – The Michiganders for Fair Lending campaign announced today that it received a recent surge in state endorsements from chambers of commerce, state associations and nonprofits in its effort to reduce payday loan interest rates in the state. The endorsements signal the campaign’s growing momentum after recently submitting more than 405,000 petition signatures to qualify for the November ballot. 

“There are more payday loan stores in the U.S. than there are McDonald’s restaurants, which illustrates just how pervasive predatory payday lending institutions are,” David Snodgrass, President & CEO, Lake Trust Credit Union. “Payday lenders direct their marketing efforts toward vulnerable populations like seniors, veterans and low income communities, and their extremely high interest rates often trap borrowers in a cycle of debt, which limits opportunity for financial wellbeing in underserved communities. The Michiganders for Fair Lending initiative lowers the allowable rates on payday loans to protect consumers today and in the future.”  

The Center for Responsible Lending estimates that payday loans drain $103 million from the pockets of vulnerable Michiganders each year. In Michigan, the typical payday loan carries the equivalent of a 370% annual percentage rate (APR).  These terms trap Michiganders in a cycle of debt.  According to the Consumer Financial Protection Bureau, 75% of payday lending fees are collected from borrowers with ten or more loans per year. The Michiganders for Fair Lending proposal is asking voters to approve capping payday loan interest rates at no more than 36% APR.

“Fair lending is one of those unique issues that business groups and consumer advocates agree on. Leaders across the state know that predatory payday loan interest rates are holding Michiganders back by hindering their economic opportunities,” said Community Economic Development Association of Michigan Policy Director Jessica AcMoody. “Our growing coalition is spreading the word that this initiative will help uplift our communities by banning exorbitant interest rates on these payday loans that trap people in an endless cycle of debt.”

Some of the current endorsements for Michiganders for Fair Lending campaign include:

  • ACLU of Michigan
  • Astera Credit Union 
  • Black Impact Collaborative
  • Blue Water Habitat for Humanity
  • Brighton Area Chamber of Commerce
  • Center for Civil Justice
  • Center for Responsible Lending
  • Christian Reformed Church of North America
  • Community Action Network
  • Community Development Advocates of Detroit (CDAD)
  • Community Economic Development Association of Michigan (CEDAM)
  • Community Financial Credit Union 
  • Frankenmuth Credit Union
  • Genesis Nonprofit Housing Coalition
  • Greater Grand Rapids NAACP
  • Habitat for Humanity Michigan
  • Habitat for Humanity Kent County
  • Hispanic Chamber of Commerce
  • Jolt Credit Union
  • Joy Community Association
  • Kent County Essential Needs Taskforce
  • Lake Trust Credit Union
  • Lansing Regional Chamber of Commerce
  • City of Lansing
  • Mayor Rosalynn Bliss (Grand Rapids)
  • Michigan Association of United Ways
  • Michigan Disability Rights Coalition
  • Michigan League for Public Policy
  • Michigan Poverty Law Program
  • Michigan Works! Association
  • One Detroit Credit Union
  • Opportunity Resource Fund
  • Project Green
  • Sugar Law Center for Economic and Social Justice
  • United Way Montcalm-Ionia Counties

 

If approved by voters in November, Michigan would join 18 states plus the District of Columbia that have capped payday loan rates at 36% APR or less. Voters in Nebraska, Colorado, South Dakota, and Montana all recently enacted payday loan rate caps by ballot measure with more than 70% approval.  

For more information about Michiganders for Fair Lending and to join the coalition, please visit www.FairLendingMI.org

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