§ 28-7-5-28 — Rate of interest; calculation for partial month; minimum term; reduction in advance; penalty for excessive or unauthorized interest or charges

(a) The maximum rate of interest charged by
pawnbrokers shall be the same as the maximum loan finance charge for
supervised lenders under IC 24-4.5-3-508(2). For purposes of this
subsection:
(1) the term of a loan commences on the date on which the loan
is made;
(2) differences in lengths of months are disregarded; and
(3) each day is counted as one-thirtieth (1/30) of a month.
The minimum term of a loan made by a pawnbroker is one (1) month.
However, on loans paid in full within the first month, the pawnbroker
may charge one (1) month's interest.
(b) Interest shall not be deducted in advance, neither shall the
pawnbroker induce or permit any borrower to split up or divide any
loan or loans for the purpose of evading any provisions of this chapter.
(c) If a pawnbroker charges or receives interest in excess of that
provided in this section, or makes any charges not authorized by this
chapter, the pawnbroker shall forfeit principal and interest and return
the pledge upon demand of the pledger and surrender of the pawn
ticket without the principal or interest. If such excessive or
unauthorized charges have been paid by the pledger, the pledger may
recover the same, including the principal if paid, in a civil action
against the pawnbroker.
Formerly: Acts 1935, c.195, s.27; Acts 1969, c.287, s.1; Acts
1971, P.L.402, SEC.1. As amended by Acts 1981, P.L.259, SEC.1;
P.L.272-1983, SEC.1; P.L.14-1992, SEC.151; P.L.42-1993, SEC.80;
P.L.258-2003, SEC.12.