Michigan Title Loan Laws and Regulations

Find out if short-term Title Loans are legal in Michigan and what amounts, interest rates, and repayment terms are set by the state's Legislation.

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Michigan Title Loans Rates and Terms

Legal Status

Legal Status

The status of a loan type according to the Federal laws and regulations. What concerns Payday Loans some states consider them legal, some – illegal and some restrict them in terms of amounts and interest rates.

Maximum Loan Amount

Maximum Loan Amount

It’s the maximum sum of cash advance allowed to apply for in the state. It usually ranges from $500 to $1000. But it may vary depending on the lender and his requirements.

Minimum Loan Amount

Minimum Loan Amount

It’s the minimal amount of cash advance you can apply for. It’s not always stated, the average sum is $100. But it may vary depending on the lender and the state’s regulations.

Maximum Loan Term

Maximum Loan Term

It’s the maximum period of time within which you are to allowed to pay off your loan.

31 day(s)
Maximum APR

Maximum APR

The maximum percentage allowed that actually represents annual cost of your loan. The APR is based on several things, including the amount you borrow, the interest rate and costs you’re being charged, and the length of your loan.


Table of Contents:

What do Michigan Title Loan Laws Regulate?

Why are Title Loans so important for Michigan borrowers?

Michigan Laws aim at Title Loan consumer protection

Title Loan repossession Laws in Michigan

How You’re Protected from Repossession in Michigan

Title Loans Lenders regulation in Michigan

What are the main Title Loan Rules in Michigan?

How the law regulates Title Loan Interest rates and Fees in Michigan

What are Title Loan Terms based on Michigan laws?

What are Title Loan Requirements in Michigan?

What You Need to Know about Title Loans in Michigan

What do Michigan Title Loan Laws Regulate?

Everybody can’t but admit that short-term Car Title Loans are a great way to get quick cash, especially if you have bad credit.

You only need a valid driver’s license and a vehicle that’s titled in your name to get a guaranteed lender’s approval. However, every borrower must consider loan interest rates and terms, as well as any Michigan laws and regulations that may apply to Title Loans.

Why are Title Loans so important for Michigan borrowers?

Federal laws don’t actually regulate title loans, it’s the responsibility of each state. At the federal level, the Consumer Bureau for Financial Protection is in charge of making sure that lenders offer Title Loans only to borrowers who can repay the money. It’s done to protect borrowers from predatory lending.

Michigan Title Loan regulations determine:

  • what the lender can do in case of a defaulted payment;
  • limit interest rates that may be charged;
  • if renewals and rollovers are allowed;
  • limits on maximum and / or minimum Title loan amount;
  • maximum and/or minimum terms of Title Loan repayment;
  • any penalty fees, etc.

Title loans are Illegal in Michigan. The laws setm minimum and maximum 31 day(s) loan terms, but there is no limit on the amount that a consumer may borrow. So, Title Loan terms in Michigan are up to 31 days. The interest rate is capped to up to 31 days which is 25%/mon. Lenders can charge . These regulations are all established by 487.2121 et seq. (Specifcally 487.2153), http://www.legislature.mi.gov/.

Study these regulations carefully before applying for a Title Loan in Michigan. Pay special attention to repossession laws. They state the lender’s behavior and consumer’s rights in case of loan default. It will be good to know in advance whether the lender is legally allowed to repossess the vehicle and sell it in order to cover the financial loss if a borrower doesn’t repay the loan on time.

Michigan Laws aim at Title Loan consumer protection

As Title Loans are designed for covering short-term urgent financial needs, they should be considered only as solutions for emergency expenses. No credit check requirements for title loans make them more available than traditional bank loans but, on the other hand, riskier. That’s why the Michigan state has established title loan laws and regulations whose main idea is to protect consumers. Make sure you understand all the details before choosing a Car Title Loan for quick funding in Michigan.

Title Loan Repossession Laws in Michigan

Repossession laws are probably the most important part that consumers must clarify before applying for a title loan. In Michigan, the car title is used as collateral to secure a title loan.

According to Michigan title loan regulations, a consumer can lose the vehicle if he or she falls behind on title loan payments or violates the terms of the title loan in some other way. The lender has the right to repossess the vehicle, sell it, and use the money of the sale as compensation for a defaulted loan.

It’s necessary to mention, that in some states, title lenders are not allowed to keep the surplus from the sale of a repossessed vehicle. In some states there exists the consumer right to cure period. It’s about a month on average. It means a borrower has this additional time to repay a defaulted loan in order to get back the vehicle.

If a customer doesn’t pay the money back even after this period, the vehicle will be repossessed.

How You’re Protected from Repossession in Michigan

  • First of all, Michigan protects its residents by setting certain repossession laws.
  • Secondly, the Government takes care that lenders offered additional repayment time, or plan to redeem the title by paying the loan back.
  • The state also determines whether the vehicle can be sold and how much percent of the sale proceeds a lender can take.
  • Title lenders are obliged to maintain detailed records regarding all title loan transactions.
  • Michigan title loan lenders violating these laws may be fined up to $1,000.

Title Loans Lenders regulation in Michigan

Make sure the lender you apply to is licensed to provide Title Loans in Michigan. They are to pay a certain fee annually for licensing. If you know that you borrow from a legitimate lending company, you may stay assured that your rights will be protected.

What are the main Title Loan Rules in Michigan?

Title loans in Michigan are regulated by 487.2121 et seq. (Specifcally 487.2153). The official body that controls the lenders of Michigan and protects consumers’ rights is The Federal Trade Commission (FTC). In case of any question, or complaint you can always address. Find all the contact information on their website - https://www.consumer.ftc.gov/.

How the law regulates Title Loan Interest rates and Fees in Michigan

Under Michigan title loan laws, lenders are allowed to charge 300.00% APR. The maximum 31 day(s) Title loan term for Michigan is also set by the state’s law. If the loan is not paid in full within up to 31 days repayment temrs, the borrower takes a risk of having his or her vehicle repossessed.

What are Title Loan Terms based on Michigan laws?

Under Michigan Title Loan laws and 487.2121 et seq. (Specifcally 487.2153), there are up to 31 days terms. The maximum $600 loan amount allowed to borrow against a car title in Michigan is also limited and usually depends on the following factors:

  • Gross monthly income
  • Value of the vehicle
  • Requested loan amount
  • Term of the loan

What are Title Loan Requirements in Michigan?

Though Title Loanlaws differ by state, most lenders have similar requirements:

  • A car title, or sometimes physical possession of the vehicle title.
  • Proof of income from any source – alimony, child support, Social Security, workers’ compensation, or disability.

Besides, an applicant will be asked to provide the following information:

  • An accurate description of the vehicle (make, model, year, mileage, etc.)
  • Type of ID and ID number presented by you
  • Amount of the loan
  • The agreed-upon repayment date of the loan and the amount due
  • The monthly rate and charges
  • Your full legal name, address, contact number, and date of birth

Title Loan requirements for Michigan residents are:

  • Original vehicle title.
  • Government-issued ID.
  • Proof of residency.
  • Current vehicle registration.
  • Proof of vehicle insurance.
  • Recent pay stubs or other proof of ability to repay the loan.

In a nutshell: What You Need to Know About Title Loans in Michigan

  • Michigan Title Loan laws require lenders to be licensed, which means the state protects consumers against fraud. Good for you, as in any case when something goes wrong you can take legal action to stay safe.
  • Title loans in Michigan are regulated by 487.2121 et seq. (Specifcally 487.2153).
  • Any false advertising and selling or charging for any kind of insurance are considered predatory actions and lenders may be fined for them by law.
  • All these and more – limits on Michigan Title loan amounts, rates, terms, etc. are stated in the laws which you’d better study carefully before taking out a Title Loan.
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File a complaint on Title Loan lender in Michigan

If you need to file a complaint about your title loan service, or lender, you may contact The Federal Trade Commission (FTC) online at https://www.consumer.ftc.gov/ or by phone.