Bill > HB4623

This bill amends the 1917 Michigan law that regulates pawnbrokers. The key provisions are: 1) It increases the maximum allowable interest rate charged by pawnbrokers from 3% to 4% per month. 2) It allows pawnbrokers to charge a $3 per month storage fee for unencumbered personal property held in pawn. 3) It maintains the requirement that pawnbrokers provide borrowers with a signed memorandum detailing the loan terms, and states that if pawnbrokers charge more than the allowable interest rate, the loan is void and the pawnbroker must return the pawned item to the borrower. 4) It adds a new civil fine of up to $5,000 for pawnbrokers who charge an interest rate higher than the 4% per month limit, which can be enforced by the county prosecutor or state attorney general.