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SB 361

Consumer protection: identity theft; references to identity theft protection act in deferred presentment service transactions act; revise. Amends sec. 22 of 2005 PA 244 (MCL 487.2142). TIE BAR WITH: SB 0360'25

2025-2026 Regular Session Introduced by Sarah Anthony and 9 co-sponsors

Michigan bill requires payday lenders to comply with identity theft protection standards when handling consumer data in deferred presentment transactions.

referred to Committee on Government Operations
#consumerprotection:identitytheft
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Bill Summary · SB 361

Legislative bill overview

SB 361 amends Michigan's deferred presentment services law (payday loans) to add identity theft protections by incorporating references to the state's Identity Theft Protection Act. The bill requires payday lenders to comply with specific identity theft safeguards when handling consumer financial information during transactions.

Why is this important

Payday lenders collect sensitive personal and financial data from vulnerable borrowers who may have limited credit options. Without explicit identity theft protections, this data could be at risk of breaches or misuse. The amendment closes a regulatory gap by ensuring payday lenders meet the same identity theft prevention standards as other financial institutions.

Potential points of contention

  • Industry compliance costs: Payday lenders may argue that new security requirements increase operational expenses, potentially raising fees for already cost-burdened borrowers
  • Scope ambiguity: The bill references another act without fully detailing what specific security measures lenders must implement, creating potential enforcement uncertainty
  • Effectiveness question: Critics may question whether identity theft protections alone address the broader harms of predatory payday lending practices, or if this is a partial solution

Compiled from official sources — confirm details with the bill’s official record.

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