PAWNBROKERS; MAX. LOAN INTEREST RATE H.B. 5589:
SUMMARY OF HOUSE-PASSED BILL
IN COMMITTEE
House Bill 5589 (as passed by the House)
Sponsor: Representative Matt Hall
House Committee: Regulatory Reform
Ways and Means
Senate Committee: Regulatory Reform
CONTENT
The bill would amend Public Act 273 of 1917, which governs and licenses pawnbrokers in certain governmental units, to modify a provision requiring a pawnbroker to give to the person pawning or pledging any article a memorandum or note containing certain language to reflect the changes proposed by Senate Bill 369, which would amend Public Act 273 of 1917 to increase, from 3% per month to 4% per month, the maximum interest rate a pawnbroker may charge on any loan.
Specifically, the memorandum or note must be consecutively numbered and on its back must be printed in English in 12-point type the following: "If interest or charges in excess of 3% per month, plus storage charges 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 or any part of the charges, 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.". The bill would refer to 4%, instead of 3%.
The bill is tie-barred to Senate Bill 369.
MCL 446.208 Legislative Analyst: Stephen Jackson
FISCAL IMPACT
The bill likely would have a negative fiscal impact on the Department of Licensing and Regulatory Affairs and no fiscal impact on local units of government. The exemptions from licensure could result in fewer individuals seeking to obtain or renew a license. This would result in a decrease in revenue used to administer licensing and regulations for the Bureau of Construction Codes.
Fiscal Analyst: Elizabeth Raczkowski
This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.