Bill > HB5536

This bill amends sections 8 and 9 of the 1917 PA 273 law, which regulates pawnbrokers in Michigan. The key provisions of the bill are: 1. It increases the maximum interest rate that pawnbrokers can charge on loans from 3% per month to 5% per month. 2. It requires pawnbrokers to provide borrowers with a memorandum or note containing the details of the loan, and specifies that this must include a notice informing borrowers that if the pawnbroker charges more than 5% interest per month, the loan is void and the borrower does not have to pay back the loan or any interest or charges. 3. It allows pawnbrokers to charge a $3 per month storage fee for unencumbered personal property held under a pawn. 4. It prohibits pawnbrokers from charging any fees or interest in excess of the amounts allowed under this law. The bill will only take effect if a related bill, Senate Bill No. ____ or House Bill No. 5535, is also enacted into law.