The bill amends the existing law regulating pawnbrokers in Michigan, specifically sections 8 and 9 of 1917 PA 273. Key changes include the requirement for pawnbrokers to provide a signed memorandum or note to individuals pawning items, which must now be consecutively numbered and include specific language regarding interest rates and borrower rights. The maximum interest rate that pawnbrokers can charge has been increased from 3% to 5% per month, and the bill clarifies that no charges can be made for the entry of the loan in the pawnbroker's records.

Additionally, the bill stipulates that interest on loans must be computed on unpaid monthly balances without compounding and prohibits pawnbrokers from charging any fees beyond those established in the act. The enactment of this bill is contingent upon the passage of House Bill No. 4115. Overall, these amendments aim to enhance consumer protection and clarify the terms of pawnbroker transactions.

Statutes affected:
House Introduced Bill: 446.208, 446.209