Keep the Pressure on the Payday Loan Expansion Legislation in State House  

After the success of the first round of CapWiz emails to members of the House Financial Services Committee, MCUL & Affiliates is once again asking credit union supporters to step up and express their thoughts about this legislation. 

Legislation that would amend the Regulatory Loan Act to let the payday lending industry to expand authority by allowing them to engage in installment loans was introduced before the state House recessed for the summer.

House Bill 5594, which would amend the Regulatory Loan Act, was referred to the House Financial Service Committee. The legislation would allow loans that would be outside the current regulatory structure and include service fees. These loans would have an effective interest rate of more than 200 percent. MCUL & Affiliates believes this is not good for consumers and communities.

As an industry, credit union leaders need to keep the pressure on legislators by continuing to send a message loudly and clearly that this is not acceptable.

Take a few moments to send MCUL’s second prepared letter to state representatives (and it will automatically cc to leadership and committee members) through MCUL’s CapWiz program. For issues like this, it’s important to stress that numbers matter. Help keep this legislation from moving in the fall by accessing CapWiz and sending the action alert. 

Submissions to Monitor may be emailed. Bryan Laviolette is the editor of Monitor. Contact him by email or call (800) 262-6285, ext. 233. The newsletter of the Michigan Credit Union League is published Monday mornings or Tuesday mornings when Monday is a holiday. There is no Monitor the week after Christmas and the week after the Annual Convention and Exposition. The MCUL reserves the right to edit submissions for clarity and space.
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