Pawnshop Loans Quiz

2. What is the maximum that a pawnbroker can charge for interest per month?

a. CORRECT!

The maximum interest rate that a pawnbroker can charge for a secured loan cannot exceed 2 percent per month; however, because pawnbrokers may also charge for the storage and security of pawned property, actual annual percentage rates (APRs) can be quite high when all fees are taken into account.

Reference: Missouri General Assembly Web site (n.d.). Chapter 367. http://www.moga.mo.gov/statutes/chapters/chap367.htm.