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Michigan · checked October 24, 2026

Payday loans in Michigan: the rules and your way out

Payday loans allowed, with limits

Michigan licenses deferred presentment (payday) transactions of up to $600 for up to 31 days, with tiered fees, a real-time statewide database, and an installment repayment plan after 8 transactions in 12 months.

Law: Deferred Presentment Service Transactions Act, 2005 PA 244, MCL 487.2121 to 487.2173. MCL text as read 2026-10-24; the sections read show only the original 2005 PA 244 history (no later amendments). Fee amounts per DIFS Bulletins 2026-06-CF and 2026-07-CF (Jan. 26, 2026) and the DIFS fee page (verification fee eff. Sept. 1, 2025).

Michigan's rules, line by line

Largest loan
$600 per transaction (MCL 487.2153(1)).
Longest term
31 days. The maturity date may not be more than 31 days after the transaction (MCL 487.2153(4)(b)).
Fee or rate cap
Service fee of no more than 15% of the first $100, 14% of the second $100, 13% of the third $100, 12% of the fourth $100, 11% of the fifth $100 and 11% of the sixth $100, plus any approved database verification fee. No interest (MCL 487.2153(1), (4)(a)). The verification fee is $2.40 from Sept. 1, 2025 and may be passed to the consumer (DIFS).
Renewals and rollovers
A licensee may not renew an agreement. It may extend one only without a fee and without increasing the balance owed (MCL 487.2155(1)).
Loans at once
1 open transaction with the same licensee, and no more than 2 open in total across all licensees (MCL 487.2153(2)).
Payment plan if you cannot pay
Yes. If the borrower has entered 8 deferred presentment transactions with any licensee in a 12-month period, the licensee must offer a written repayment plan for the 8th and each later transaction that year. The borrower must ask, orally or in writing at the place of business, within 30 days after the maturity date. Repayment is 3 equal installments due on the next 3 paydays. A plan administration fee applies ($15 in statute, CPI-adjusted to $23.38 for 2026-2030 by DIFS Bulletin 2026-07-CF). No new transactions with any licensee during the plan. The database flags eligible borrowers (MCL 487.2155(2)-(4)).
State loan database
Yes. A statewide real-time database operated for DIFS by Catalis (formerly Veritec Solutions). Licensees must check it before each transaction and close transactions in it the same day (MCL 487.2142, 487.2154).
Limits on collection
One returned check charge per transaction: $25 in statute, CPI-adjusted to $38.96 for 2026-2030 (DIFS Bulletin 2026-06-CF) (MCL 487.2158(2)-(3)). The borrower is not subject to any criminal penalty for entering the transaction or if the check is dishonored (487.2158(4)), and the lender may not use any criminal process to collect (required notice, 487.2152). The check may not be presented before maturity or during a repayment plan (487.2155(5)). No confession of judgment (487.2153(4)(d)). After a return, the lender may use telephone-initiated debits only if the borrower agrees to each one and there is no fee (487.2155(9)).
Other rights
Right to rescind for any reason, without cost, by close of business on the next business day by returning the cash or the lender's check; the fee is refunded (MCL 487.2157(1)). Redeem the check at any time before maturity; no fee for partial payments (487.2157(2)). Violation notice procedure: if the lender agrees it broke the law, it must return the check and fee and pay restitution of 5 times the fee (minimum $15, maximum the check amount). If it disagrees, the borrower can complain to DIFS, which may order restitution of 3 times that amount (MCL 487.2156). Arbitration clauses must have the lender pay all costs and hold the arbitration within 10 miles of the borrower (487.2152(3)).

If you are behind on a payday loan in Michigan

  1. Ask for the payment plan before the due date. Michigan law gives borrowers a way to repay in installments. The details are in the table above. Ask in writing and keep a copy.
  2. Stop the automatic withdrawals if they are emptying your account. You can revoke the lender's permission to debit your account and tell your bank. How to do it.
  3. Look at a credit union payday alternative loan. Federal credit unions can lend $200 to $2,000 at much lower cost. How they work.
  4. Talk to a nonprofit credit counselor. A counselor can look at all your bills, not just this one. How to find a real one.

Check a lender, or report one

Sources

This page summarizes the law; it is not legal advice. Laws change, and the statute and regulator control. If something here is out of date, write to hello@paydayloan.help.

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