Pennsylvania Statutes Title 63 P.S. Professions and Occupations (State Licensed) § 281-12. Interest and charges

(A) A pawnbroker shall not charge, contract for or receive interest in excess of six per cent (6%) per year on any loan.

In addition to interest at the rate of six per cent (6%) per year, a pawnbroker may charge and collect from the pledger fees for storage, insurance, investigation, and other services which shall be--

Not more than two and one-half per cent (2 1/2 %) per month on that part of the unpaid principal balance of any loan: Provided, however, That a pawnbroker may charge an additional fee of up to one dollar ($1.00) to cover reporting relating to any pledge required by any governmental unit.

(B) The interest and charges authorized by this act shall be computed at the rates specified on the actual principal balance of the loan due for the actual time which has elapsed from the date of the loan to the date of payment. For the purpose of calculation of interest and charges permitted under this act, a year shall be twelve (12) calendar months, and a month shall be one calendar month, or any fractional part thereof. A calendar month shall be any period from a certain date in one month to the same date in the next succeeding month.

(C) A minimum of twenty-five cents ($.25) on loans of three dollars and ninety-nine cents ($3.99), or less, a minimum of fifty cents ($.50) on loans of more than three dollars and ninety-nine cents ($3.99) and not in excess of six dollars and ninety-nine cents ($6.99), a minimum of seventy-five cents ($.75) on loans of more than six dollars and ninety-nine cents ($6.99) and not in excess of nine dollars and ninety-nine cents ($9.99), and a minimum of one dollar ($1.00) on loans in excess of ten dollars ($10) and not exceeding fourteen dollars and ninety-nine cents ($14.99), and a minimum of one dollar and fifty cents ($1.50) on loans in excess of fifteen dollars ($15), may be collected on any loan for interest and charges.

(D) No greater interest nor other fees, fines, charges or costs shall be charged, contracted for or received, directly or indirectly, under any pretext whatsoever. Interest and charges permitted under this act shall not be collected or deducted in advance.

(E) A pawnbroker who charges, contracts for or receives interest or charges greater than permitted under this act shall forfeit both principal and interest, and shall return the pledge upon demand of the pledger, and surrender of the pawn ticket without tender or payment of principal or interest. A pledger, borrowing money from a pawnbroker licensed under this act, who shall have paid any interest and charges in excess of those prescribed and allowed by the provisions of this act, shall be entitled to recover back from the pawnbroker, by action at law commenced within six months from the date of the last payment, any and all interest and charges paid in excess of those permitted under this act, and in addition fifty dollars ($50.00) as a penalty to be paid to the pledger: Provided, nothing in this section shall be construed as prohibiting the pawnbroker from charging the pledger for actual expenses incurred for mailing when a pledge is redeemed by mail.

A pawnbroker shall at the time of payment furnish to the person paying a receipt showing the number of the pawn ticket on which the payment is made, the date of payment, the amount paid on principal of the loan, the amount paid for interest, and fees for storage, insurance, investigation and other services contemplated by this section, and the amount, if any, paid to the pawnbroker for cleaning, pressing, repairing or other similar services to the pledged personal property, which have been requested by the pledger. A duplicate copy of every receipt issued shall be retained by the pawnbroker for his record.