Michigan Interest Rates Laws
While most states set limits on how much interest a creditor may charge, consumers regularly waive these limits when agreeing to the terms of a credit card or other loan. Therefore, state interest rate laws typically have no bearing on the actual rates paid by borrowers. Regardless, Michigan interest rate laws impose a 5 percent limit on interest rates, or 7 percent with a written agreement.
Read about Michigan's interest rate laws in the following table. See Consumer Protection Resources to learn more about your rights and protections.
|Legal Maximum Rate of Interest||5%; maximum rate with written agreement: 7% §438.31|
|Penalty for Usury (Unlawful Interest Rate)||Loss of all interest, official fees, delinquency or collection charge, attorney's fees or court costs (§438.32)|
|Interest Rates on Judgments||Rate of interest equal to 1% plus the average interest paid at auctions of 5-yr. U.S. treasury notes during the 6 months preceding July 1 and January 1 (§600.6013)|
|Exceptions||Small loans (§493.1); credit union loans (§490.14)|
Note: State laws are constantly changing -- contact a Michigan consumer protection attorney or conduct your own legal research to verify the state law(s) you are researching.
Research the Law
- Michigan Law
- Official State Codes - Links to the official online statutes (laws) in all 50 states and DC
Michigan Interest Rates Laws: Related Resources