A version of this column originally appeared in The Alpena News.
Numbers don’t lie. And the numbers here in Michigan clearly show that payday lenders are targeting vulnerable communities and stripping millions of dollars away from Michiganders under the masquerade of being a fast fix for financial emergencies.
Payday lending has clearly been predatory in nature, with 77% of payday lending advertisements targeting communities of color and lenders disproportionately locating stores in rural and low-income areas as well as Black and Latino communities, where community members have already faced extraordinary barriers to building generational wealth due to past and present-day racism.
Here in Michigan, there are 5.6 payday stores per 100,000 people statewide according to the Center for Responsible Lending, while there are 7.6 and 6.6 payday stores per 100,000 people in census tracts where the population is made up of 25% and 50% Black and Latino residents respectively. And in rural census tracts and census tracts below 80% of the state’s median household income, there is a payday lending store concentration of 7.1 stores per 100,000 people and 9.1 stores per 100,000 people respectively. These numbers show that people who are financially vulnerable are being targeted by payday lenders who offer risky loans that come with extremely high interest rates and short repayment periods.
With little regulation of payday lenders in Michigan to date, interest rates for payday loans in our state can often average an astonishing 370%, far exceeding the double-digit average annual percentage rates (APR) you typically see for other things, such as credit cards or buying a car. In fact, in the fourth quarter of 2023, credit cards carried an average APR of 21.47%, and the average APR for a car loan is currently 24.17% for a person within the lowest credit score range.
When you couple this with the short, two-week repayment period for these high-interest loans, you can clearly see why so many Michiganders find themselves trapped in an endless cycle of borrowing and debt. Families with low incomes often use payday loans when an unexpected expense arises, such as a car repair or a medical bill, but many times, they still need their next paycheck to go to their own basic needs, such as housing, utilities and groceries. This makes it near impossible for families to pay back their loans in the short time period required, frequently leading to more and more loans to cover that initial emergency cost. In fact, according to the Community Economic Development Association of Michigan, payday borrowers in Michigan take out an average of 10 loans per year and 70% reborrow the same day they pay off their previous loan. This type of back-to-back borrowing often results in mounting financial obligations that are near impossible to overcome.
This is how payday lenders are able to divest millions of dollars from Michiganders who are already struggling, with the Center for Responsible Lending reporting that Michigan payday lenders have made more than a half billion dollars off of Michiganders in just five years. This is money coming straight out of the pockets of individuals and families who are already struggling on a daily basis to make ends meet.
The time is now for commonsense protections to be put into place for the people of Michigan who have been harmed by this type of predatory payday lending. This includes residents living below the poverty line and households below the Asset Limited, Income Constrained, Employed (ALICE) threshold.
Fortunately, the Michigan Legislature has before them right now two bills that would take a big step in offering the type of consumer protections that Michiganders need. House Bill 4343 would require increased transparency and reporting of several pieces of information regarding payday loans and Senate Bill 632 would cap annual interest rates for payday loans at 36%, bringing it in line with protections that were extended to our military service members more than 17 years ago through the Military Lending Act. Senate Bill 632 would also bring Michigan in line with the 20 other states that have either already passed laws to cap payday lending rates around 36% or have put measures in place that ensure lenders can’t saddle consumers with interest rates and financing terms that lead to long-term debt traps.
We here at the Michigan League for Public Policy strongly support these bills and extend our immense gratitude to the bill sponsors: Sen. Sarah Anthony and Rep. Jennifer Conlin. We encourage you to join us in urging the Michigan Legislature and governor to prioritize and support their constituencies by making these bills part of the law here in Michigan as soon as possible.
Jay Cutler joined the League in March 2026 as the Kids Count Senior Data Analyst, where he collects, analyzes, and prepares data for Kids Count in Michigan.
Danielle Taylor-Basemore joined the League as the Development Data and Stewardship Coordinator in June 2025. She brings with her five years of nonprofit experience with a special focus on community engagement, data visualization and strategic programming. Prior to joining the League, Danielle served as the Business District, Safety, and Digital Manager at Jefferson East, Inc.
Scott Preston is a Senior Policy Analyst with the Michigan League for Public Policy, where he leads the organization’s immigration and criminal justice reform portfolios. In the three years prior to joining the League, Scott facilitated the Southeast Michigan Refugee Collaborative and managed a small business economic development program at Global Detroit. His work included launching Michigan’s first Refugee Film Festival and building on a trusted connector model that linked marginalized communities with crucial resources. Scott’s work at the League is informed by his background in journalism and research. He spent four years covering the Syrian refugee crisis in the Middle East for publications such as The Economist, and later worked with unaccompanied refugee minors through Samaritas. Scott holds a master’s degree in international migration and public policy from the London School of Economics and Political Science.
Kate Powers joined the League as the Chief Development Officer in February 2025. Prior to joining the League, Kate held leadership positions at many Michigan nonprofit organizations, most recently serving as the COO and Chief Development Officer of Ele’s Place. Kate has spent the bulk of her career in fundraising, with a short stint in the state Legislature as a legislative aide to members in both chambers. Kate is a graduate of Michigan State University’s James Madison College with a Bachelor of Arts in Social Relations and has a certificate in fundraising management from the Lilly Family School of Philanthropy at Indiana University. Additionally, Kate served on the East Lansing Public Schools Board of Education and is a past President of the Junior League of Lansing. In her free time, she enjoys traveling with her husband and her son and saving outfit of the day and home decor ideas on Pinterest. 
Nicholas Hess joined the League as the Fiscal Policy Analyst in September of 2024. In this role, Nicholas focuses on tax policy, government revenue, and their impact on working families and racial equity, including the effects of the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC). Nicholas values the role that judicious fiscal policy can play in the improvement of people’s lives and the economy, alleviating inequities along the way.
Audrey Matusz joined the League as the Visual Communications Specialist in September 2024. She supports the team with implementing social media strategies and brainstorming creative ways to talk about public policy. She brings with her nearly a decade of experience in producing digital products for evidence-based social justice initiatives. 
Jacob Kaplan 
Donald Stuckey 
Alexandra Stamm 
Amari Fuller
Mikell Frey is a communications professional with a passion for using the art of storytelling to positively impact lives. She strongly believes that positive social change can be inspired by the sharing of data-driven information coupled with the unique perspectives of people from all walks of life across Michigan, especially those who have faced extraordinary barriers. 
Yona Isaacs (she/hers) is an Early Childhood Data Analyst for the Kids Count project. After earning her Bachelor of Science in Biopsychology, Cognition, and Neuroscience at the University of Michigan, she began her career as a research coordinator in pediatric psychiatry using data to understand the impacts of brain activity and genetics on children’s behavior and mental health symptoms. This work prompted an interest in exploring social determinants of health and the role of policy in promoting equitable opportunities for all children, families, and communities. She returned to the University of Michigan to complete her Masters in Social Work focused on Social Policy and Evaluation, during which she interned with the ACLU of Michigan’s policy and legislative team and assisted local nonprofit organizations in creating data and evaluation metrics. She currently serves as a coordinator for the Michigan Center for Youth Justice on a project aiming to increase placement options and enhance cultural competency within the juvenile justice system for LGBTQIA+ youth. Yona is eager to put her data skills to work at the League in support of data-driven policies that advocate for equitable access to healthcare, education, economic security, and opportunity for 0-5 year old children. In her free time, she enjoys tackling DIY house projects and trying new outdoor activities with her dog.
Rachel Richards rejoined the League in December 2020 as the Fiscal Policy Director working on state budget and tax policies. Prior to returning to the League, she served as the Director of Legislative Affairs for the Michigan Department of Treasury, the tax policy analyst and Legislative Director for the Michigan League for Public Policy, and a policy analyst and the Appropriations Coordinator for the Democratic Caucus of the Michigan House of Representatives. She brings with her over a decade of experience in policies focused on economic opportunity, including workforce issues, tax, and state budget.
Simon Marshall-Shah joined the Michigan League for Public Policy as a State Policy Fellow in August 2019. His work focuses on state policy as it relates to the budget, immigration, health care and other League policy priorities. Before joining the League, he worked in Washington, D.C. at the Association for Community Affiliated Plans (ACAP), providing federal policy and advocacy support to nonprofit, Medicaid health plans (Safety Net Health Plans) related to the ACA Marketplaces as well as Quality & Operations.
Renell Weathers, Michigan League for Public Policy (MLPP) Community Engagement Consultant. As community engagement consultant, Renell works with organizations throughout the state in connecting the impact of budget and tax policies to their communities. She is motivated by the belief that all children and adults deserve the opportunity to achieve their dreams regardless of race, ethnicity, religion or economic class.
Emily Jorgensen joined the Michigan League for Public Policy in July 2019. She deeply cares about the well-being of individuals and families and has a great love for Michigan. She is grateful that her position at the League enables her to combine these passions and work to help promote policies that will lead to better opportunities and security for all Michiganders.
Megan Farnsworth joined the League’s staff in December 2022 as Executive Assistant. Megan is driven by work that is personally fulfilling, and feels honored to help support the work of an organization that pushes for more robust programming and opportunities for the residents of our state. She’s excited and motivated to gain overarching knowledge of the policies and agendas that the League supports.
