MI HB5954

Pawnbrokers must deliver a consecutively numbered memorandum or note to borrowers at the time of loan containing required entry information, with no charge for this document.

Pawnbrokers may charge interest not exceeding 3% per month on loans, with a minimum charge of 50 cents per loan.

Pawnbrokers may charge $1.00 per month or fraction thereof for storage of pledged personal property.

Pawnbrokers may charge a 20% per month usage fee for unencumbered personal property that is used by the pawner during the pawn term, which is not considered interest.

Pawnbrokers are prohibited from charging interest and fees exceeding amounts established in the act, charging interest in advance, or charging examination fees; interest must be computed on unpaid monthly balances without compounding.