Senate Bill 2382

AN ACT TO AMEND SECTION 75-67-313, MISSISSIPPI CODE OF 1972, TO ALLOW PAWNBROKERS TO PASS CREDIT AND DEBIT CARD PROCESSING CHARGES TO THE CUSTOMERS; TO AMEND SECTION 75-67-315, MISSISSIPPI CODE OF 1972, TO ALLOW THE COMMISSIONER TO PROMULGATE RULES TO ALLOW PAWNBROKERS TO STORE CERTAIN PLEDGED GOODS OFF-PREMISES; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Section 75-67-313, Mississippi Code of 1972, is amended as follows:

75-67-313. (1) (a) A pawnbroker may contract for and receive a pawnshop charge in lieu of interest or other charges for all services, expenses, cost and losses of every nature not to exceed twenty-five percent (25%) of the principal amount, per month, advanced in the pawn transaction.

(b) The provisions of paragraph (a) of this subsection shall not include the fee charged by a third-party processing company for the use of a debit or credit card. Pawnbrokers shall be allowed to pass the third-party processing company's fee on to the customer if the pawnbroker provides clear and conspicuous notice to all customers that such fee will be applied to the debit and credit card transactions. Said notice must be provided before the customer completes the transaction and must include:

(i) The amount of the fee;

(ii) That the fee is for the use of an alternate payment method; and

(iii) The type of payment method to which the fee applies.

(c) The amount of the fee identified in the provisions of paragraph (b) of this subsection shall be limited to the single transaction cost charged by the third-party processor to the pawnbroker for the use of a credit or debit card.

(2) Any interest, charge, or fees contracted for or received, directly or indirectly, in excess of the amount permitted under subsection (1) of this section shall be uncollectible and the pawn transaction shall void. The pawnshop charge allowed under subsection (1) of this section shall be deemed earned, due and * * * ~~owing~~ owed as of the date of the pawn transaction and a like sum shall be deemed earned, due and * * * ~~owing~~ owed on the same day of the succeeding month.

SECTION 2. Section 75-67-315, Mississippi Code of 1972, is amended as follows:

75-67-315. A pawnbroker and any clerk, agent or employee of such pawnbroker shall not:

(a) Fail to make an entry of any material matter in his or her record book;

(b) Make any false entry therein;

(c) Falsify, obliterate, destroy or remove from his or her place of business such records, books or accounts relating to the licensee's pawn transaction;

(d) Refuse to allow the commissioner, the appropriate law enforcement agency, the Attorney General or any other duly authorized state or federal law enforcement officer to inspect his or her pawn records or any pawn goods in his possession during the ordinary hours of business or other acceptable time to both parties;

(e) Fail to maintain a record of each pawn transaction for four (4) years;

(f) Accept a pledge or purchase property from a person under the age of eighteen (18) years;

(g) Make any agreement requiring the personal liability of a pledgor or seller, or waiving any of the provisions of this article or providing for a maturity date less than thirty (30) days after the date of the pawn transaction;

(h) Fail to return or replace pledged goods to a pledgor or seller upon payment of the full amount due the pawnbroker unless the pledged goods have been taken into custody by a court or a law enforcement officer or agency;

(i) Sell or lease, or agree to sell or lease, pledged or purchased goods back to the pledgor or back to the seller in the same or related transaction;

(j) Sell or otherwise charge for insurance in connection with a pawn transaction;

(k) Remove pledged goods from the premises within thirty (30) days following the originally fixed maturity date;

(l) Accept a pledge or purchase property when such property has manufacturer's serial numbers which have been obviously removed and/or obliterated.

The commissioner may establish by rule, regulation or order a process to allow certain pledged goods to be stored off-premises, at a secure, nonresidential location.

SECTION 3. This act shall take effect and be in force from and after July 1, 2024.