Initiative to Cap Interest Rates on Payday Loans Submits Signatures for Michigan Election – Ballotpedia News

On June 1, the Michiganders for Fair Lending campaign submitted signatures for a ballot initiative that would appear on the November ballot.

The initiative puts a 36% annual interest rate cap on payday loans. Michiganders for Fair Lending argues that the typical payday loan has an annual rate of 370% and that high interest rates can be financially damaging to Michiganders. According to the Center of Responsible Lending, 18 states and the District of Columbia limit annual interest rates to 36%.

“Payday lenders have used the lure of a quick buck to prey on vulnerable Michiganians for too long,” campaign spokesman Josh Hovey told voters this fall for a chance to fix that problem.”

Of the 10 initiative campaigns in Michigan, the Michiganders for Fair Lending campaign was the only one to meet the June 1 signature deadline.

The campaign said it had submitted 405,265 signatures out of the 575,000 signatures it collected during the petition process. Michigan will require 340,047 signatures in 2022 to qualify an indirectly initiated state statute for voting. This number is determined by taking 8% of the votes cast for governor in the last gubernatorial election.

The measure is an indirectly initiated state law. Of the 21 states that allow initiated state legislation, nine states, including Michigan, use an indirect process for citizen-initiated legislation. In Michigan, citizen-initiated legislation that receives enough valid signatures is sent to the Legislature, which then has 40 days to enact the initiative into law. The governor cannot veto indirect initiatives approved by the legislature. If lawmakers do not approve the initiative, it will appear on the next general ballot.

The nine other initiative campaigns that did not submit their signatures on time will be allowed to appear on the ballot in the next election cycle.

There is one other measure currently on the ballot in Michigan — a state legislature-proposed constitutional amendment that would change term limits for state legislatures.

Since 1996, 26 citizen-initiated measures have gone to voters in Michigan for approval. Of the 26, 8 (31%) were approved and 18 (69%) rejected.

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