Members of the Black Leadership Advisory Council (BLAC) have put their support behind Michigan State Sen. Sarah Anthony and State Rep. Abraham Aiyash for their proposal of Senate Bill 632. The bill aims to cap the interest rate on payday loans at a maximum of 36 percent annual percentage rate (APR), in alignment with BLAC’s 2022 policy report to Governor Whitmer.
BLAC’s recommendation highlights the disproportionate targeting of Black communities by payday lenders, where loans can amass interest rates exceeding 300% APR. The lack of a cooling-off period between loans in Michigan prompts consumers to frequently renew loans, as per data from the Consumer Financial Protection Bureau (CFPB).
The advocacy emphasizes the prevalence of payday lending operations in communities of color, with areas with significant African American populations hosting more payday lenders per capita.
Reporting for WGRT – Choze Powell
