Michigan state map

Payday Loans in Michigan

At a Glance
Michigan state flag
  • Nickname: "The Great Lake State"
  • Population: 9,995,915
  • Website: Michigan.gov

As any Michigander can tell you, the Mitten State has plenty to write home about. From its rich history as a leader in art, industry, and innovation (we’re looking at you, Motown, Ford, and Edison) to the endless beauty and adventure of its lakeshores and Upper Peninsula, Michigan has a lot to offer.

Nevertheless, between changes in job markets and population shifts across the state, there are many Michigan households struggling to make ends meet. As of 2018, the median household income in Michigan was $56,697 – about $5,000 lower than the national median income of $61,937. At the same time, Michigan’s poverty rate of 14.2% in 2018 was higher than the national average of 11.8%. This has left many Michigan residents struggling to make ends meet.

Average Credit Card Debt and Median Household Income in Michigan vs. the U.S.
The U.S.
Average Credit Card Debt (2019)
Median Household Income (2018)

Payday Loans in Michigan

Payday loans – also called cash advances, check advances, or “deferred presentment service transaction” – are typically for relatively small amounts, and they have to be paid back quickly. In Michigan, anyone with government-issued “personal identification, a checking account, and proof of anticipated income from a job or governmental benefits” can usually access a payday lender either online or in a storefront and take out an immediate loan of up to $600.

There are about 650 payday lenders in Michigan. On average, each of these payday lenders issues 3,541 loans annually, with an estimated average loan amount of $350. This leaves Michiganders paying an estimated $108,701,335 just in payday fees each year.

Payday Loan Statistics for Borrowers in Michigan vs. Nationally
Average Loan Amount
Michigan Payday Loans Borrowers: Average #s of Loans per Year
  • 5 or more loans per year:94% of Michigan payday loan borrowers
  • 12 or more loans per year:75% of Michigan payday loan borrowers
  • 30 or more loans per year:10% of Michigan payday loan borrowers

A 2008 report by the Center for Responsible Lending indicates that payday loan borrowers experience greater financial struggles than non-borrowers. The Center for Responsible Lending surveyed payday loan borrowers living in Detroit and found that they were more likely to be evicted from their homes, file for bankruptcy, or experiences lapses in their utilities, as compared to non-borrowers.

Statistics show that Michigan payday lenders set up shop in communities of color, low-income neighborhoods, and rural areas at higher rates than in other regions. The Center for Responsible Lending notes that areas with more than 25% African-American and 50% Latino residents have 7.6 and 6.6 payday stores per 100,000 people, respectively. Rural regions have a payday store concentration of 7.1 stores per 100,000 people, while low-income neighborhoods have, on average, 9.1 stores per 100,000 people. These figures are much higher than the average of 5.6 stores per 100,000 people across the rest of the state.

Consumer Protection in Michigan

How to Report a Lender in Michigan

The process for filing complaints about a lender varies depending on the type of complaint.

For payday lending complaints, the Michigan Attorney General’s Office advises consumers to notify lenders they believe to be in violation of the law in writing: “The payday lender must determine if it violated the law within three business days of receiving the complaint. If the payday lender determines that it did violate the law, it must return the check received from the customer and any service fees paid. The customer must still pay back the amount received. The payday lender, however, will be required to pay the customer an amount equal to five times the amount of the fee charged in the transaction, but not less than $15 or more than the face amount of the customer’s check.

If the payday lender does not believe it has violated the law, it must notify the Commissioner of the Department of Insurance and Financial Services (DIFS) and the customer of its conclusion. If the customer still believes that the payday lender has violated the law, the customer should file a complaint with DIFS… DIFS will investigate complaints promptly.”

Department of Insurance and Financial Services

If you’ve got a complaint about a title lender, those go to the Attorney General’s Office:

For complaints about a business offering payday loans:

Michigan Department of Insurance and Financial Services

Guides to Payday Loans in Michigan Cities

Check back soon for these payday loan guides to the following cities in Michigan:

Detroit | Grand Rapids| Lansing