Bill > HB4581

This bill amends the Michigan Credit Reform Act by significantly changing the maximum allowable interest rates for regulated lenders. Specifically, the bill reduces the maximum annual interest rate from 25% to 10% for extensions of credit, effectively lowering the legal cap on interest charges. The bill removes a previous provision that allowed depository institutions (like banks) to charge any interest rate for credit card arrangements, which means these financial institutions would now be subject to the same 10% interest rate cap. Additionally, the bill reinforces an existing requirement that for personal, family, or household credit extensions, interest or finance charges must be calculated only on the unpaid balance of the principal. These changes aim to provide greater consumer protection by limiting the amount of interest that can be charged and ensuring more transparent and fair lending practices across different types of financial institutions in Michigan.

Government Affairs

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-4581