Michigan Compiled Laws

Mich. Comp. Laws § 438.32 (2026)

Violation of act; attorney fees and court costs, recovery.

✓ current as of July 2026

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INTEREST RATES

Act 326 of 1966

438.32 Violation of act; attorney fees and court costs, recovery.

Sec. 2.

Any seller or lender or his assigns who enters into any contract or agreement which does not comply with the provisions of this act or charges interest in excess of that allowed by this act is barred from the recovery of any interest, any official fees, delinquency or collection charge, attorney fees or court costs and the borrower or buyer shall be entitled to recover his attorney fees and court costs from the seller, lender or assigns.

History: 1966, Act 326, Eff. Mar. 10, 1967

PopularName Notes:

Usury Act

Notes of Decisions

Cited in 51 cases (8 in the last 5 years), 1971–2026 · leading case: Olsen v. Porter, 539 N.W.2d 523 (Mich. Ct. App. 1995).

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Olsen v. Porter, 539 N.W.2d 523 (Mich. Ct. App. 1995). · cites it 11× “Defendant’s answer included a counterclaim for a declaratory judgment in which he sought to apply all the interest he had paid on the usurious contract to the outstanding principal debt on the land contract pursuant to MCL 438.32; MSA 19.15(2). Plaintiffs moved for summary…”

Washburn v. Michailoff, 613 N.W.2d 405 (Mich. Ct. App. 2000). · cites it 6× “On cross appeal, defendants argue that the trial court erred in refusing to award them attorney fees under MCL 438.32; MSA 19.15(2), because plaintiffs were seeking to enforce a usurious promissoiy note.”

Lawsuit Fin., LLC v. Curry, 683 N.W.2d 233 (Mich. Ct. App. 2004). · cites it 2× “§ 438.32, the maximum lawful annual interest rate is seven percent and lenders that charge interest in excess of that rate are barred from recovering any interest, late fees, or attorney fees, and the borrower is entitled to recover his attorney fees from the lender.”

Lawsuit Fin., LLC v. Curry, 261 Mich. App. 579 (Mich. Ct. App. 2004). · cites it 2× “31 and MCL 438.32, the maximum lawful annual interest rate is seven percent and lenders that charge interest in excess of that rate are barred from recovering any interest, late fees, or attorney fees, and the borrower is entitled *591 to recover his attorney fees from the…”

Washburn v. Michailoff, 613 N.W.2d 405 (Mich. Ct. App. 2000). · cites it 6× “MCL 438.32; MSA 19.15(2) provides as follows: Any seller or lender or his assigns who enters into any contract or agreement which does not comply with the provisions of this act or charges interest in excess of that allowed by this act is barred from the recovery of any…”

Waldorf v. Zinberg, 307 N.W.2d 749 (Mich. Ct. App. 1981). · cites it 5× “Judge Gilbert denied defendants’ motions and stated that plaintiffs were entitled to attorney fees as part of the final judgment. The first question raised before this Court is whether the trial court erred in ruling that all interest previously paid by plaintiffs must be…”

Paul v. U.S. Mut. Fin. Corp., 389 N.W.2d 487 (Mich. Ct. App. 1986). · cites it 4× “On December 12, 1983, plaintiffs filed a complaint for declaratory relief against defendant alleging that defendant was barred from recovering interest and costs on the promissory note pursuant to MCL 438.32; MSA 19.15(2), because the note’s 10% per annum interest rate on the…”

Patrick v. Shaw, 739 N.W.2d 365 (Mich. Ct. App. 2007). · cites it 4× “MCL 438.32. Although there was only one loan here, there were effectively two semi-independent transactions.”

In re Skymark Props. Ii, LLC, 597 B.R. 363 (Bankr. E.D. Mich. 2019). · cites it 4× “As the Lender correctly points out, the Promissory Note, at paragraph 18, contains a provision that necessarily means that the interest charged under the Promissory Note cannot exceed the maximum amount permitted by law.”

Barbour v. Handlos Real Est. & Bldg. Corp., 393 N.W.2d 581 (Mich. Ct. App. 1986). · cites it 3× “Even if the mortgage and note are not void, plaintiff argues that the interest rate is usurious and he is entitled to actual attorney fees and costs provided by MCL 438.32; MSA 19.15(2). Plaintiff argues that defendants are not protected by the mortgage assignment because…”

Kansas City Life Ins. v. Durant, 298 N.W.2d 630 (Mich. Ct. App. 1980). · cites it 5× “Defendants argue that the trial court should not have allowed plaintiff to recover any interest, citing MCL 438.32; MSA 19.15(2): “Any seller or lender or his assigns who enters into any contract or agreement which does not comply with the provisions of this act or charges…”

Corradini v. Corradini (In Re Corradini), 276 B.R. 571 (Bankr. W.D. Mich. 2002). · cites it 2× “Mich. Comp. Laws Ann. § 438.32 (West 1995).”

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