MI HB4887

Limits pawnbroker interest rates to 3% per month on loans and allows $3.00 per month storage charges for unencumbered personal property, with interest computed on unpaid monthly balances without compounding.

Establishes that title to pledged or pawned items vests in the pawnbroker 90 days after the pledge or pawn if the borrower has not paid the debt, interest, and charges, and prohibits sale of items until they have remained in possession for at least 90 days.

Creates a written hold order process allowing law enforcement to place holds on property suspected of being misappropriated for up to 90 days, with requirements for specific information including property description, officer identification, and expiration date.

Provides that title vests in the pawnbroker 10 days after a hold order expires if no court extension is granted, and requires court hearings before property can be released to claimants, with courts authorized to order restitution to pawnbrokers for advances, interest, charges, and attorney fees.

Takes effect January 14, 2019, 90 days after enactment on October 16, 2018.