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HB 4343

Financial institutions: payday lending; legislative report requirement concerning deferred presentment service providers and transactions; revise. Amends sec. 51 of 2005 PA 244 (MCL 487.2171).

2023-2024 Regular Session Introduced by Brenda Carter and 17 co-sponsors

Michigan requires DIFS to publish annual public reports (2025-2031) on payday loans: provider counts, fees, transaction volumes, locations, complaints, and repeat borrowers.

assigned PA 46'24
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Bill Summary · HB 4343

Summary — HB 4343 (Deferred Presentment Service Transactions / “payday loans”)

Status: Enacted as Public Act 46 of 2024 (approved by Governor May 22, 2024). First required report due October 31, 2025; annual reports due each October 31 through October 31, 2031. Department: Department of Insurance and Financial Services (DIFS).

Purpose / intent

The law requires DIFS to compile and publish annual, standardized data about deferred presentment service transactions (commonly called payday loans) to increase transparency, inform legislators and regulators, and help assess consumer protection concerns (e.g., repeat borrowing, fees, complaint levels). Testimony indicated DIFS already collects much of this information; the statute directs formal reporting and public posting.

Key provisions

  • Requires the DIFS Director to submit a report to the standing House and Senate committees with jurisdiction over banking and financial services by October 31, 2025, and annually each October 31 through October 31, 2031.
  • DIFS must also publish the report on its website on the same schedule.
  • Required report elements include:
    • The number of persons engaged in providing deferred presentment service transactions in Michigan during the immediately preceding calendar year.
    • A general, detailed report on the business during the preceding calendar year, including:
    • A summary of program fees received by DIFS.
    • Statewide monthly statistics: transaction volumes, transaction amounts, fees, averages, active license locations, total number of customers, and repayment-plan usage.
    • County- or zip-code-level statistics: provider locations; transaction volumes; total advances; total fees; average advance and fee amounts; number of repeat borrowers (“repeat drawers”); and number of licensee locations.
    • The name and street address of each licensee during the preceding calendar year.
    • The number of complaints filed with DIFS against licensees and nonlicensees arising from in‑state transactions in the preceding calendar year.
    • Any additional information the Director considers relevant.
  • The statute preserves the Director’s authority to promulgate implementing rules under the Administrative Procedures Act.

Who is affected

  • DIFS: must compile, publish and transmit the reports (administrative burden is expected to be minimal).
  • Licensed deferred presentment (payday) providers: their aggregate and location data will be publicly reported.
  • Consumers, legislators, researchers, and advocates: gain access to standardized data to monitor industry activity, fees, complaints, and repeat usage patterns.

Fiscal and procedural notes

  • Fiscal impact: minimal — DIFS testified and nonpartisan analyses indicate existing resources likely suffice to gather and publish the reports.
  • Timeline: seven years of mandatory annual reporting (2025–2031). The act was approved May 22, 2024 and enacted as Public Act 46 of 2024 (effective per the act’s stated timing).

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

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