PAWNBROKER FEES: CLARIFY
House Bill 4823 (Substitute H-1)
Sponsor: Rep. Rich Brown
Committee: Banking and Financial Services
Complete to 6-6-05
A SUMMARY OF HOUSE BILL 4823 AS REPORTED FROM COMMITTEE ON 6-1-05
The bill would amend Public Act 273 of 1917, which regulates pawnbrokers, to specify that a pawnbroker can charge a person who has pawned unencumbered personal property either of the following: a monthly storage fee or a monthly usage fee. The usage and storage fees would not be considered interest.
The bill also contains updated language regarding recordkeeping by pawnbrokers.
[Public Act 585 of 2004— House Bill 6029 — amended Public Act 273 of 1917 to allow a person who pawned and pledged unencumbered personal property to maintain possession of the property and continue to use it, with the pawnbroker allowed to charge a usage fee of $1 per month. This usage fee was a new fee created by Public Act 585. The storage fee already existed in law. Both are in addition to the three percent per month interest that can be charged on a loan.]
MCL 446.208 and 446.209
FISCAL IMPACT:
The bill would not appear to have any fiscal impact on sate or local government.
Fiscal Analyst: Richard Child
■ This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.