Asked in Banking, Consumer Law and Contracts for Tennessee

Q: I pawned my wedding ring on 8.11.17...for 250$.on 11.21.17 I went to get it and they said I owe 600$!!! I read the law..

The TN lawn broker act of 1988, which states they can charge a fee up to 1/5th of the loan and 2 %interest. I have a picture of their screen, that has their charges... And it says 20%? Pawned for 250$, there is interest on the 90 days and I went to get it out on the 92nd day and was told it is 600$ to get it out. I didn't see any law pertaining to time limits... Or anything that would pertain to my situation.

1 Lawyer Answer
Mr. James Charles Wright
Mr. James Charles Wright
  • Business Law Lawyer
  • Knoxville, TN
  • Licensed in Tennessee

A: You are right as to the fee and 2% interest per month...24% per annum. In 93 days the amount on 250 would not be 600. You should contact the local attorney general and advise them of what you believe is an unlawful practice.

45-6-210. Rate of interest Other charges permitted.

In connection with and for a pawn or pawn transaction, no pawnbroker shall demand and receive a rate of interest greater than two percent (2%) per month of the amount of the loan advance under the pawn or pawn transaction, and no other charge of any description, for any purpose whatsoever, shall be made by the pawnbroker; except that the pawnbroker may charge, contract for and receive a fee not to exceed one fifth (1/5) of the amount of the loan advance under the pawn or pawn transaction for investigating the title, storage, insuring the pledged goods, closing the loan, making daily reports to local law enforcement officers and for other expenses, losses of every nature whatsoever and for all other services. The fee when made and collected shall not be...

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