LANSING, Mich. (WLNS) — The typical interest rate in Michigan right now for payday loans, or short-term loans is 370%. 

The rate is an issue that one group wants to change.

“We’ve modeled our campaign off of several other states that have recently approved payday lending reform and we are proposing to cap interest rates at no higher than 36%,” said Josh Hovey, the Spokesperson for the Michiganders For Fair Lending Campaign.

That 36% figure is about the same as a high-interest credit card.

The group says current rates at Payday businesses are hurting struggling families.

A recent study from the ‘Center for Responsible Lending’ says the average person who takes out a payday loan will need to take out 10 more loans just to keep up. 

“They’ll immediately pay one-off and not have enough money to cover the rest of their bills and so it becomes this endless cycle of debt,” said Hovey.

Today more than 400,000 signatures were officially scanned and delivered for review to get it on the November ballot.

Advocates say it shows Michiganders support the change.

“We believe that reflects what we already knew to be true of the heart of citizens around this state, that they want to see consumer protections within this industry and we believe that we are taking a huge step towards making that happen today,” said Director of Project Green, Dallas Lenear.

Once the petition signatures are validated by the Board of State Canvassers, the legislature will then have 40 days to approve the initiative.

“When you break the cycle of debt people are able to better provide for their families, they have less of their income going just to pay off high-interest debt,” said Hovey.