The Short Term Loan
MCL 487.2153 — one transaction up to $600.00, with a service fee that steps down by the hundred
The size. A licensee may enter into 1 deferred presentment service transaction with a customer for any amount up to $600.00, and may not enter into one if the customer has an open transaction with that licensee, or more than 1 with other licensees.
| Part of the transaction | Service fee may not exceed |
|---|---|
| Part of the transactionFirst $100.00 | Service fee may not exceedFifteen percent |
| Part of the transactionSecond $100.00 | Service fee may not exceedFourteen percent |
| Part of the transactionThird $100.00 | Service fee may not exceedThirteen percent |
| Part of the transactionFourth $100.00 | Service fee may not exceedTwelve percent |
| Part of the transactionFifth $100.00 | Service fee may not exceedEleven percent |
| Part of the transactionSixth $100.00 | Service fee may not exceedEleven percent |
Plus verification. The service fee may also include the database verification fee the act allows. The fee is earned on the date of the transaction and is not interest.
If the law was broken. Before signing, the customer receives a separate notice. A customer who believes the law was violated may tell the licensee in person before the close of business that day, or in writing at any time before signing a new agreement, and the licensee has 3 business days to determine whether it agrees that it violated the law and to say so.
Licensing, the disclosures the lender owes, and what happens when a check is returned are set out in other parts of the law that are not on this page. Whether a particular loan broke these limits is a question for the state's financial regulator or a licensed Michigan attorney.
Sources for this section (1)
- MCL 487.2153 — Deferred presentment: up to $600.00, and the service fee
Legal information, not legal advice. Verified as of September 2026. Applying it to a particular situation is the work of a licensed Michigan attorney.