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 memorandum or note to individuals pawning items, which must now be signed by the pawnbroker and contain specific information about the loan. The bill also increases the maximum allowable interest rate on loans from 3% to 5% per month and stipulates that the memorandum must include a warning that loans with interest exceeding this rate are void. Additionally, the pawnbroker is prohibited from charging for the entry of the loan details and must print specific information on the back of the memorandum.

In section 9, the bill clarifies that a pawnbroker may charge a minimum interest of 50 cents on a single loan and a storage fee of $3.00 per month for unencumbered personal property. It also emphasizes that interest must be calculated on unpaid monthly balances without compounding and prohibits any charges beyond those specified in the act. The enactment of this bill is contingent upon the passage of House Bill No. 4115.

Statutes affected:
House Introduced Bill: 446.208, 446.209
As Passed by the House: 446.208, 446.209