SENATE BILL NO. 269
April 19, 2023, Introduced by Senator WOJNO and referred to the Committee on Regulatory
Affairs.
A bill to amend 1917 PA 273, entitled
"An act to regulate and license pawnbrokers that conduct business
in this state; to provide for the disposition of allegedly
misappropriated property in the possession of pawnbrokers; to
provide remedies and prescribe penalties; and to provide for the
powers and duties of certain local governmental units and state
agencies,"
by amending the title and sections 8, 9, and 18 (MCL 446.208,
446.209, and 446.218), the title and section 9 as amended by 2018
PA 345 and section 8 as amended by 2002 PA 469.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1 TITLE
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1 An act to regulate and license pawnbrokers that conduct
2 business in this state; to provide for the disposition of allegedly
3 misappropriated property in the possession of pawnbrokers; to
4 provide remedies and prescribe penalties; to prescribe civil
5 sanctions; and to provide for the powers and duties of certain
6 local governmental units and state agencies.
7 Sec. 8. A pawnbroker, at the time of a loan, shall deliver to
8 the person pawning or pledging any article a memorandum or note
9 signed by him or her, containing the pawnbroker that contains the
10 substance of the entry required to be made by him or her the
11 pawnbroker in his or her the pawnbroker's book by that is required
12 under section 6. A The pawnbroker shall not make or receive a
13 charge shall not be made or received by the pawnbroker for the
14 entry, memorandum, or note. The memorandum or note shall must be
15 consecutively numbered and upon the following must be printed on
16 its back shall be printed in English in 12-point type: the
17 following: "If interest or charges in excess of 3% 5% per month,
18 plus storage charges provided in this document, are asked or
19 received, this loan is void and of no effect, ; and the borrower
20 cannot be made to pay back the money loaned, any interest on the
21 loan, or any charges or any part of the charges, and the pawnbroker
22 loses all right to the possession of the goods, article, or thing
23 pawned , and shall surrender the item to the borrower or pawner
24 upon due demand for the item.".
25 Sec. 9. (1) A licensed pawnbroker may charge on any loan a
26 rate of interest that does not exceed 3% 5% per month and is not
27 required to accept any interest less than 50 cents on a single
28 loan. A pawnbroker may also charge $3.00 per month or fraction of a
29 month for the storage of unencumbered personal property under any
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1 single pledge or pawn.
2 (2) A pawnbroker or the pawnbroker's agent or employee shall
3 not charge or receive interest on a loan that exceeds the amounts
4 established in this act.
5 (3) Interest on a loan is not payable in advance and shall
6 must be computed on unpaid monthly balances without compounding.
7 (4) A pawnbroker is not entitled to any examination fee and
8 shall not make any charge that exceeds the amounts established in
9 this act.
10 Sec. 18. (1) Any Except as otherwise provided in subsection
11 (2), a person who shall violate any of the provisions of violates
12 this act, whether as owner, or as clerk, agent, servant or employe,
13 shall be employee, is guilty of a misdemeanor and upon conviction
14 thereof in any court of competent jurisdiction be fined not less
15 than 25 dollars nor more than 100 dollars, or punishable by
16 imprisonment in the county jail for not less than 10 days nor and
17 not more than 3 months, a fine of not less than $250.00 and not
18 more than $1,000.00, or by both. such fine and imprisonment in the
19 discretion of the court.
20 (2) A person who violates section 9 by charging on any loan a
21 rate of interest more than the rate prescribed in that section is
22 subject to a civil fine of not more than $5,000.00. The prosecutor
23 of the county in which the violation occurred or the attorney
24 general may bring an action to collect the fine.
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Statutes affected: Senate Introduced Bill: 446.208