Consumer credit: interest rates; maximum interest rate allowed for medical debt; modify. Amends sec. 3 of 1976 PA 331 (MCL 445.903). TIE BAR WITH: SB 0702’25
Key claim: Michigan SB0701 proposes to amend the Consumer Protection Act to lower the maximum interest rate permitted on medical debt.
Abstract
(SB0701 · 103rd Legislature) Consumer credit: interest rates; maximum interest rate allowed for medical debt; modify. Amends sec. 3 of 1976 PA 331 (MCL 445.903). TIE BAR WITH: SB 0702’25 Latest action (2026-06-17): Referred To Second Reading
Why this matters
Capping interest rates on medical debt reduces the growth of balances owed by Michigan households and complements other safety-net measures limiting garnishment, foreclosure, and credit reporting for medical debt. It shifts costs from patients back toward medical creditors, and its tie-bar to SB0702 signals a coordinated legislative package rather than a standalone reform.