PAWNBROKERS; MAXIMUM LOAN INTEREST RATE                                                                                         S.B. 369:

                                                                                                                                                                                                      SUMMARY OF BILL

                                                                                                                                                                        REPORTED FROM COMMITTEE

Senate Bill 369 (as reported without amendment)

Sponsor:   Senator Peter J. Lucido

Committee:   Regulatory Reform

CONTENT

The bill would amend Public Act 273 of 1917, which governs and licenses pawnbrokers in certain governmental units, to increase, from 3% per month to 4% per month, the maximum interest rate a pawnbroker may charge on any loan.

Specifically, the Act allows a licensed pawnbroker to charge on any loan a rate of interest that does not exceed 3% per month and is not required to accept any interest less than $0.50 on a single loan. The bill would modify the maximum interest rate from 3% to 4%.

MCL 446.209                                                                                                                   Legislative Analyst:   Drew Krogulecki

FISCAL IMPACT

The bill would have no fiscal impact on State or local government.

Date Completed:   10-30-19                                                                                                 Fiscal Analyst:   Ryan Bergan

Joe Carrasco

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.