Michigan group collecting signatures to rein in payday loans
Associated PressLANSING, Mich. — A Michigan group began collecting signatures Wednesday for a ballot proposal to limit interest and fees charged by payday lenders they said are trapping low-income borrowers in cycles of debt. Jessica AcMoody, policy director at the Community Economic Development Association of Michigan, said payday loan customers take out 10 loans per year on average and 70% reborrow the day they pay off a previous loan. “This cycle causes significant financial harms for families caught in a debt trap — including difficulty paying for basic living expenses and medical needs repeated overdraft fees, which often lead to closed bank accounts, taking the borrower out of the mainstream banking system altogether,” she said. Spokesperson Patrick Meyers called the proposal “extremely deceptive” and said it would effectively ban state-regulated payday loans.
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Voting, payday lending ballot drives advance in Michigan
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