2005 House Bill 4834 (License and regulate “payday lenders” ) (Senate Roll Call 404)
Passed in the Senate (31 to 6) on September 13, 2005, to require licensure and impose regulations on providers of a "deferred presentment service" (or "payday loans"), including license fees and bonding requirements. The maximum allowable loan would be $600, and fees (interest) would be capped under a sliding scale of 11 percent to 15 percent depending on the size of the loan. Licensees would have to provide detailed warnings and notices about the loans, and use a real-time state database of all loan transactions to check whether an applicant has an outstanding payday loan elsewhere. The bill limits the duration of such loans, and prohibits "rollovers" and multiple loans. [History, Amendments & Comments]
The vote was 31 in favor, 6 opposed, and 1 not voting
(Senate Roll Call 404 at Senate Journal 78)
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The following legislators supported 2005 House Bill 4834 (License and regulate “payday lenders” ):
The following legislators opposed 2005 House Bill 4834 (License and regulate “payday lenders” ):
| Barcia (D) | Brater (D) | Clark-Coleman (D) | Clarke (D) | Patterson (R) | Scott (D) |
The following legislators did not vote on 2005 House Bill 4834 (License and regulate “payday lenders” ):
| Hammerstrom (R) |
Most Recent Comments
1) payday loans [by Anonymous Citizen on September 23, 2005]Please check the facts. If this bill passes, these people will truly have no where to go. Would you loan a complete stranger $200 for 3 weeks for $32 dollars? I do every day. Try to find one of my customers to say a bad thing about me...you won't. Regulate this and these people will get hurt.
Want to discuss? call me 248-451-9455
bob
QuickCash Payday Advance
An independent with one store, helping people daily.
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You need to check the facts. If this bill passes, there will be no place for these people to get money. They will turn to true loan sharks and people will get hurt. Would you loan a stranger $200 for 3 weeks for $32 dollars? I think not. I do. Try to find one customer in Pontiac of QuickCash payday advance to say a bad thing about me.
bob
QuickCash Payday Advance
Pontiac, MI
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Senator Thomas' statement is as follows:
Like my colleague, the previous speaker, I also rise in support of House Bill No.4834 not because I'm a fan of the payday advance industry, but because since 1999, we have struggled in Michigan to find a solution to the growing expansion of this industry.
Like my colleague from Highland Park, I represent one of those districts where just about on every street corner now there is a payday advance place opening. You can't keep track of how many times these places do open. We've been trying to regulate this industry in Michigan now for six years. This finally gets us on a level playing field where we can regulate this industry and provide true consumer protection.
This bill, frankly, is one of the best and toughest bills any state has passed in the nation. We will have the lowest fees of any state in the Great Lakes region, and certainly, the nation. We will have a limited number of advances that a customer can have at one time, which is dramatic improvement from where this legislation was six years ago when it was first introduced. We will have real and full disclosure of all costs, which we've never had, a complaint process for consumers, and very important, an extended payment plan so that when folks do over leverage themselves, there is a realistic opportunity to get out from under this debt.
While this legislation is not perfect, it is the best we could get at this time. It is reasonable and prudent consumer protection, and I'm very pleased that the Legislature is taking this action now to regulate this industry. It's simply not going. Away, we have to make sure that all people have fair protections, and this legislation ensures that.
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