PawnSmarts comes ready for Michigan — 3% monthly interest, $1 fees, 48-hour police reporting and the statutory transaction form — so you write a compliant pawn in about 30 seconds.
Michigan pawn laws are set by Act 273 of 1917 (MCL 446.201–446.219): pawnbrokers may charge 3% monthly interest plus $1 storage and usage fees, must license through the local governmental unit, must report each transaction to the local police agency within 48 hours, and may keep an item once a pawn goes unredeemed for 3 months. PawnSmarts ships pre-configured for these rules — it calculates the 3% interest and $1 charges, tracks the 3-month forfeiture clock, prints transaction records that substantially comply with the statutory form, and produces the 48-hour police report. You scan a license, the pledgor's details auto-fill, and the ticket prints. New hires are productive in about ten minutes.
It runs on Windows, Mac, iPad, Android or any browser, works offline, and auto-syncs when you reconnect. Pricing is $89/month (Essential) or $129/month (Professional), or own Professional outright for a one-time $2,995 — or free when you run card payments through our integrated processing. No contract, no setup fee. We migrate your current data for a one-time $395 and you are live in under 24 hours.
Michigan regulates pawnbrokers under Act 273 of 1917 (MCL 446.201–446.219), amended over the years and the subject of pending legislation in 2024–2025. It sets the rules for licensing, transaction records, police reporting, interest and forfeiture. Here is what PawnSmarts is configured to support.
MCL §446.201 requires every pawnbroker to obtain a license from the local governmental unit (city, village or township) before doing business. Internet drop-off stores are specifically exempt. MCL §446.202 sets one-year, non-transferable licenses and a $250 bond; local units may add fees and requirements. Pontiac and St. Louis, for example, require compliance with Act 273 and local ordinances before issuing a city license.
MCL §446.205 sets the core recordkeeping rules. Every transaction must be recorded at the time of receipt and include:
The record must be made on a form that substantially complies with the form in subsection (4) — an 8.5" x 11" form with fields for article description, serial/model numbers, trade name, color, size, jewels, material, stones, inscriptions, purchase price/loan amount, dealer, city, date and ticket number, and on the back the operator's license/ID number, customer name, address, employer, age, height, weight, race, sex, time received, and a rolled print of the right thumb. PawnSmarts can print transaction records that substantially comply with this statutory form.
MCL §446.205(3) requires you to keep a record of each transaction and, within 48 hours after the property is received, send one copy of the record to the local police agency. MCL §446.206 adds that you must state the articles are not, to your knowledge, stolen or misappropriated. PawnSmarts generates and exports these reports for submission to your local agency — and where a jurisdiction uses LEADS Online, it can transmit there automatically. You stay responsible for sending within the 48-hour window.
MCL §446.209 sets Michigan's fee structure:
PawnSmarts is configured to calculate Michigan's fee structure. You set the rates and monitor legislative changes; the software applies them to every loan accurately.
MCL §446.210 sets the forfeiture timeline. If the debt is not repaid within 3 months, the pawn becomes the property of the lender. Even after 3 months, if the pledgor pays all amounts due, payment reinvests them with title and the right of possession. PawnSmarts tracks the 3-month clock and flags items approaching forfeiture so you never miss a date.
PawnSmarts helps you track these with date-of-birth fields, notes and audit trails, but compliance is yours. Penalties for violations are set under MCL §446.218, with recent legislation (HB 4115, 2025) proposing updated civil sanctions for interest-rate violations.
Many Michigan cities layer their own rules on top of Act 273. Pontiac §26-976 requires compliance with Act 273 and local ordinances before a city license issues. St. Louis (Article VI) adds comprehensive local requirements:
St. Louis explicitly requires customer thumbprints, consistent with the state's right-thumbprint rule. Verify requirements with your city or county clerk — PawnSmarts does not track local licenses, bonds or ordinances for you.
Capture the rolled right thumbprint required by §446.205 (and by St. Louis) with a supported fingerprint scanner.
Scan a license to record the driver license, state ID or government ID number and auto-fill the pledgor.
Print transaction records on standard paper that substantially comply with the statutory form.
Generate and export duplicate records for your local police agency, or transmit via LEADS Online.
Pre-configured for 3% monthly interest plus $1 storage/usage fees, with no advance interest and no compounding.
Track the forfeiture clock and flag items approaching the 3-month deadline.
On the Professional plan, PawnSmarts sends each pledgor up to three automatic SMS and email reminders before a loan is due, each with a secure payment link. They pay online from home and the loan updates instantly. Fewer missed dates means fewer forfeitures and more redemptions.
Already running another system? We migrate your customers, loans and inventory for a one-time $395 and have you live in under 24 hours — no contract, no setup fee, cancel anytime. Browse the states we serve or start with what pawn shop software does.
Under Act 273 of 1917 (MCL §446.209), Michigan pawnbrokers may charge 3% interest per month, a $1 storage charge per month, and a $1 usage fee per month if you are granted written use of the property. There is a 50-cent minimum interest charge, and interest may not be charged in advance or compounded. Examination fees are prohibited.
Under MCL §446.210, if a pawn debt is not repaid within 3 months, the pledged property becomes the property of the pawnbroker. Even after 3 months, if the pledgor pays all amounts due, payment reinvests them with title and the right of possession. PawnSmarts tracks the 3-month forfeiture clock and flags items approaching the deadline.
Under MCL §446.205(3) and §446.206, Michigan pawnbrokers must send one copy of the transaction record to the local police agency within 48 hours after the property is received. The report must state that the articles are not, to the pawnbroker's knowledge, stolen or misappropriated. PawnSmarts generates and exports these reports for your local agency, and supports LEADS Online transmission.
Yes. MCL §446.205 requires a rolled print of the right thumb as part of the statutory transaction form, which must be on the back of an 8.5" x 11" form also capturing the operator's license/ID number, customer name, address, employer, age, height, weight, race, sex, and time received. PawnSmarts can capture the right thumbprint with a supported fingerprint scanner and prints transaction records that substantially comply with the statutory form.
PawnSmarts is $89/month for the Essential plan or $129/month for Professional, with no contract, no setup fee and month-to-month billing; you can also own Professional outright for a one-time $2,995, or get it free when you run card payments through integrated processing. Every plan ships with Michigan's Act 273 settings preconfigured plus LEADS Online, OFAC screening and all 48 states, and migrating from another system is a one-time $395 with most shops live in under 24 hours.
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