May 2, 2007, Introduced by Rep. Virgil Smith and referred to the Committee on Banking and Financial Services.
A bill to amend 1917 PA 273, entitled
"An act to regulate and license pawnbrokers in certain governmental
units of this state; and to prescribe certain powers and duties of
certain local governmental units and state agencies,"
by amending sections 8 and 9 (MCL 446.208 and 446.209), section 8
as amended by 2002 PA 469 and section 9 as amended by 2004 PA 585.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 8. A pawnbroker, at the time of a loan, shall deliver to
the person pawning or pledging any article a memorandum or note
signed by him or her, containing the substance of the entry
required to be made by him or her in his or her book by section 6.
A charge shall not be made or received by the pawnbroker for the
entry, memorandum, or note. The memorandum or note shall be
consecutively numbered and upon its back shall be printed in
English in 12-point type the following: "If interest or charges in
excess
of 3% 5% per month, plus storage charges provided in this
document, are asked or received, this loan is void and of no
effect; and the borrower cannot be made to pay back the money
loaned, any interest on the loan, or any charges or any part of the
charges, and the pawnbroker loses all right to the possession of
the goods, article, or thing pawned, and shall surrender the item
to the borrower or pawner upon due demand for the item.".
Sec. 9. (1) A licensed pawnbroker may charge upon any loan a
rate
of interest not to exceed 3% 5%
per month and is not required
to accept any interest less than 50 cents on a single loan. A
pawnbroker may also charge $1.00 per month or fraction of a month
for the storage of unencumbered personal property under any single
pledge or pawn.
(2) A pawnbroker may charge $1.00 per month or fraction of a
month for a usage fee for unencumbered personal property pawned or
pledged and used by the pawner during the term of the pawn or
pledge. A usage fee charged under this subsection is not considered
interest.
(3) A pawnbroker or the pawnbroker's agent or employee shall
not charge or receive interest on the loan in excess of the amounts
provided for in this act.
(4) Interest on any loan is not payable in advance and shall
be computed on unpaid monthly balances without compounding.
(5) A pawnbroker is not entitled to any examination fee and
shall not make any charge in excess of the amounts provided for in
this act.