LANSING, Mich., March 27, 2023 —  State Rep. Jennifer Conlin (D-Ann Arbor Township) introduced a bill last week to require the Michigan Department of Insurance and Financial Services to conduct an extensive study and issue a yearly report on payday lending practices in Michigan.

“We’ve all heard stories about how payday lenders take advantage of their already struggling customers,” Conlin said. “Their victims are often members of low-income, disadvantaged communities who have the least political and financial power. This study will ensure that we develop responsible, effective legislation to hold predatory lenders accountable.”

Predatory lenders impose unfair or abusive loan terms on borrowers, including high interest rates and narrow time windows for repayment. They often use coercive tactics and target borrowers with credit problems or who have recently lost their jobs. Rising prices have provided payday lenders with only greater opportunities to exploit customers, leading to record-breaking profits in 2020. Many states already prohibit high-cost payday lending.