Anthony and Robinson on payday lending bill

Wednesday, October 16, 2019

LANSING — The Michigan House of Representatives’ Regulatory Reform Committee took testimony on House Bill 5097 yesterday, which would extend the amount payday lenders are able to offer borrowers up to $2,500. Concerns have been raised that HB 5097 would encourage predatory payday lending practices in Michigan, as well as its potential to strengthen the debt trap cycle many experience due to high interest rates. In response, state Reps. Sarah Anthony (D-Lansing) and Isaac Robinson (D-Detroit) issued the following statement:

 

“One of the most common arguments behind payday lending is that the industry has the potential to support those who have been largely excluded from safer and more affordable traditional financing options, but in its current form, this bill does not truly empower those individuals who have been left out in the cold. Payday lending becomes predatory when loans have unreasonably high interest rates and other deceptive terms that trap cash-strapped workers in a cycle of debt. We strongly believe that every hardworking Michigander deserves access to safe and affordable financing options when they need it, especially in communities like Lansing, Detroit and Hamtramck, that have been disproportionately impacted by predatory lending practices. We remain committed to increasing transparency and accountability in the payday lending industry and working toward effective solutions for the people of Michigan.”   

 

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