Financial institutions: other; limitations on interest charges; modify. Amends sec. 13 of 1939 PA 21 (MCL 493.13).

HB 5161 amends Michigan's Regulatory Loan Act to cap interest rates on certain loans at 36% annually and regulate associated fees. It specifically limits loan processing fees to 5% of the principal (capped at $250, adjusted annually for inflation), prohibits charging multiple unsecured loans simultaneously, and bans advance interest payments or compounding. This directly affects borrowers of closed-end loans and open-end credit (excluding credit cards) by restricting lender fees and interest calculations. The bill is pending in committee and would apply to licensed lenders operating under Michigan's loan regulations.