November 13, 2014, Introduced by Rep. Walsh and referred to the Committee on 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 that
contains the substance of the
entry
he or she is required to be made by him or her to make in
his
or
her book by section 6. A The
pawnbroker shall not make or
receive
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 on its back shall be printed the
pawnbroker shall print in English in 12-point type the following:
"If
interest or charges in excess of 3% per month, plus storage
charges
and usage fees 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 fees or any part of the charges, fees, 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 on any
loan
a
rate of interest not to that
does not exceed 3% 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 In addition to interest
under subsection (1), a
pawnbroker
may charge $1.00 20% 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 and
fees on the loan in excess of a
loan
that exceed the amounts provided for
established in this act.
(4)
Interest on any a 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 that exceeds the amounts
provided
for established in this act.