F.A.Q.

Yes, online payday loans are legal in Michigan. However, they are regulated by the Michigan Consumer Finance Act (MCFA). The MCFA stipulates that the maximum loan amount is $600, the maximum APR is 360%, and the loan term is capped at 31 days. Borrowers are also required to provide proof of income before obtaining a payday loan.

The MCFA prohibits payday lenders from charging certain fees, such as those for bounced checks or returned payments. Additionally, lenders must provide borrowers with a written disclosure of the loan terms before the loan is issued.

Here are some additional considerations for payday loans in Michigan:

• You can only have two payday loans at a time.
• Rolling over a payday loan into a new loan is not allowed.
• Lenders must be licensed by the Michigan Department of Insurance and Financial Services.
• Before signing the contract, the lender must provide a written disclosure of the loan terms.

Yes, payday lenders in Michigan can check if you have other loans. When you apply for a payday loan, the lender will request information about your income, employment, and existing debts. This data is used to assess your creditworthiness and determine your eligibility for the loan. If you have other loans, the lender will see this information and may factor it into their decision to approve or deny your application.

Furthermore, payday lenders in Michigan are required to report your loan information to credit bureaus. As a result, your payday loan will appear on your credit report alongside any other debts you have. This can negatively affect your credit score, potentially making it more challenging to get approved for other loans in the future.