Michigan Sen. David Robertson (Picture: Courtesy picture)
The state Senate banking committee is scheduled Tuesday to listen to testimony on two bills quietly introduced Friday that experts state are made to foil future regulations that are federal payday loan providers, and might legalize car title lending in Michigan.
The bills, sponsored just by Sen. David Robertson, a representing that is republican and areas of Oakland and Genesee counties, allows payday loan providers to function through вЂњcredit solution companies.вЂќ These credit solution businesses вЂ” or CSOs вЂ” ostensibly arrange loans for customers but frequently work straight with just one lender, you can add on a site charge, leading to short-term loans where the yearly interest price frequently soars above 300 %. The CSO and loan provider typically share the owners that are same customer financing specialists state.
вЂњThis bill is predatory payday and vehicle title lending on steroids,вЂќ Debbi Adams, whom leads financial justice efforts for the community team Michigan United, stated in a declaration.