7.09.100 Pawn Service Charges

(a) In a pawn transaction, a pawnbroker may contract for and receive a pawn service charge as follows:

(1) Interest component of the pawn service charge shall not exceed 1.5 percent of the amount financed for each 30-day period in a pawn transaction.

(2) The total amount of the pawn service charge, including interest, shall not exceed 25 percent of the amount financed for each 30-day period in a pawn transaction, except that the pawn broker is entitled to receive a minimum of $5.00 for each 30 day period.

(b) The default date of a pawn may be extended by mutual agreement of pawnbroker and pledgor. Such extension shall be evidenced by written memorandum, a copy of which must be supplied to pledgor and which shall clearly indicate the new default date and the pawn services charges owed on the new default date. The pawn service charge for the extension shall be the equivalent of that charged for the original 30-day period. There is no limit on the number of extensions the parties may enter into.

(c) If pledged goods are redeemed within the original 30-day period, a pawnbroker is entitled to the amount specified in paragraph (a) of this section. Any unused pawn service charge paid in advance by the pledgor shall be refunded by the pawnbroker.

(d) Any interest, charge or fees contracted for or received, directly or indirectly, in excess of the amounts authorized are prohibited, may not be collected and render the pawn transaction voidable.