Predatory Lending Awareness Quiz

5. The maximum interest rate that a pawnbroker may charge for a secured loan cannot exceed 2 percent per month.

INCORRECT

True. The maximum interest rate that a pawnbroker may charge for a secured loan cannot exceed 2 percent per month. However, pawnbrokers may also charge for the storage and security of pawned property. Actual annual percentage rates of interest can be quite high, when both interest and storage costs are taken into account.

Reference:
Missouri General Assembly. (n.d.). Pawnbrokers and Small Loans. Retrieved on December 31, 2007 from http://www.moga.mo.gov/statutes/C367.HTM.