This 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 pawnbrokers cannot charge for the entry of the loan details. Additionally, it mandates that the memorandum must include a warning regarding the consequences of charging excessive interest.

Furthermore, the bill clarifies that pawnbrokers may charge a storage fee of $3.00 per month for unencumbered personal property and emphasizes that interest must be calculated on unpaid monthly balances without compounding. It also specifies that pawnbrokers are not entitled to any examination fees and cannot charge amounts exceeding those established 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