Usury Laws

"Parties may stipulate in writing for the payment of any rate of interest that is less than 7% per year. There are limited exceptions to this rule. However, where there is not writing, the interest rate of loans must be at a rate of $5.00 for $100.00 for a year, or a proportional rate for a longer or shorter time. MCL § 438.31

A person is guilty of criminal usury when, without legal permission, he knowingly charges, takes or receives any money or other property as interest on a loan or forbearance at more than 25% simple interest per year or the equivalent rate for a longer or shorter period. Any person guilty of criminal usury may be imprisoned for a term not to exceed 5 years or fined not more than $10,000.00, or both. MCL § 438.41

After default, interest may be charged on unpaid interest at the rate specified in the contract up to 10%, or, if no interest rate is specified, up to 7%. MCL § 438.101

Exceptions to the limit of 25% interest per year fall under the Credit Reform Act (""CRA"") (MCL §§ 445.1851 - 445.1864)."