Bill > HB5161

This bill amends the Regulatory Loan Act to modify limitations on interest charges and fees for financial institutions. The key provisions include setting a maximum interest rate of 36% per annum, prohibiting licensees from inducing a person to take out multiple unsecured loan contracts simultaneously, and specifying how loan charges must be calculated. The bill allows licensees to charge a loan processing fee up to 5% of the principal (not exceeding $250), with this limit to be adjusted every two years based on changes in the Consumer Price Index. Licensees are permitted to charge various fees, including handling fees for returned checks, fees for processing payments, and reasonable annual fees for open-end credit. The bill also clarifies that licensees can recover costs associated with retaking and selling personal property and specifies that violations of the act are subject to penalties under the Credit Reform Act. Additionally, the bill defines "open-end credit" as credit that is not secured by real property and involves repeated transactions with a generally available credit limit as balances are repaid.

Government Affairs

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-5161