The American Fintech Council (AFC) has voiced its support for Michigan House Bill 5161, which proposes to raise the state’s interest rate cap on consumer credit from 25% to 36%. The bill, introduced by Representative Curtis VanderWall, aims to increase access to regulated and affordable credit for Michigan residents while preventing predatory lending practices.
Phil Goldfeder, CEO of the American Fintech Council, stated: “Michigan families deserve access to safe, affordable, and responsible credit when they need it most. AFC was built on the foundation of responsible credit for communities long forgotten by traditional financial institutions. A 36% cap modernizes an outdated framework and ensures that hardworking families can borrow responsibly and build financial resilience without resorting to dangerous alternatives.”
Currently, Michigan’s interest rate cap limits some working families’ ability to obtain safe loans through regulated channels. This restriction sometimes leads consumers toward unregulated or high-cost options. If enacted, HB 5161 would bring Michigan in line with other states that have similar standards balancing affordability and consumer protection. Responsible fintech lenders have already been operating under these standards elsewhere, providing services such as debt repayment assistance and short-term financing for essential expenses.
Ashley Urisman, Director of State Government Affairs at the American Fintech Council, commented: “The 36% interest rate cap strikes the right balance for Michigan families, both expanding access to credit while maintaining strong consumer safeguards. It’s a clear, evidence-based standard that reforms Michigan’s credit framework and ensures responsible lenders can continue to safely serve consumers.”
The AFC expressed its intention to collaborate with state policymakers as HB 5161 progresses through the legislative process.
AFC represents leading fintech companies and innovative banks that offer embedded finance solutions. The organization promotes transparent and inclusive financial systems by supporting innovation in financial services and advocating for sound public policy. Its members aim to enhance competition in consumer finance markets and develop products tailored for underserved communities.