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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.

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