Sterling Heights, MI Business Licensing & Operations: Pawnbrokers (2026)
Key Facts
- Licensing authority
- City Clerk, § 12-86
- Interest cap
- 3% per month
- Storage fee
- $1 per month per item
- Sale eligibility
- after 3 months unredeemed
- Minimum patron age
- 18 years old, § 12-98
- License term
- expires December 31, non-transferable
- Revocation penalty
- 5-year license ban, § 12-100(B)
Summary
Sterling Heights requires every pawnbroker operating in the city to hold a license issued by the City Clerk under Code of Ordinances § 12-86, backed by a bond with two sureties. Holding a precious metal and gem dealer license or a secondhand dealer license does not exempt a business from this separate city licensing requirement, and the license is a revocable privilege, not a property right.
(A) No person shall carry on the business of a pawnbroker in the city without first having obtained a license issued by the City Clerk, authorizing such person to carry on such business subject to the provisions of this article. The fee for a pawnbroker's license, and for renewal of such license, shall be in the amount established by the annual appropriations ordinance, but not more than the limit established by state law. The licensee shall provide a bond to the city in the penal sum established by the annual appropriations ordinance and state law, with at least two sureties, conditioned for the faithful performance of the duties and obligations pertaining to the conduct of the business, and for the payment of all costs and damages incurred by any violation of state law or local ordinance.
(B) Licensure under either or both of the following acts, or related city ordinance, does not exempt a person or business from obtaining a license under this article:
(1) The precious metal and gem dealer act.
(2) The secondhand dealers and junk dealers act.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: 2026 S-46: Local legislation current through Ord. 509, passed 5-19-26).
Full Breakdown
An applicant for a pawnbroker license in Sterling Heights files a written application with the City Clerk under § 12-87, listing every owner, officer, director, and employee, along with fingerprints and sworn affidavits confirming no felony or moral-turpitude conviction within ten years and no other criminal conviction within five years. The Chief of Police then investigates the applicant's character and criminal history and inspects the proposed premises through the Building, Police, and Fire Departments, filing a report and recommendation with the City Clerk within 90 days (§ 12-88).
The City Manager reviews that report and, under § 12-89, must deny the license if the fee was not paid, the business would not comply with the city's building, fire, or zoning ordinances, a principal has a disqualifying conviction, the application contains false statements, or a similar license was denied or revoked elsewhere within the prior ten years. A license runs through December 31 of the issuance year, is not transferable, and ties the business to the address named on the license; a sale of the business requires the new owner to apply for its own license (§ 12-90).
Once licensed, a pawnbroker must record every pawn transaction in English with a sequential number, the borrower's identification, and the loan amount, open to examination by the City Attorney, police, code enforcement, and the Macomb County Prosecuting Attorney, and must send a copy to the police department every Monday (§ 12-91, § 12-92). Interest is capped at 3% per month with a $1 per month storage charge and a separate $1 per month usage fee if the pawner keeps using the item (§ 12-94). Title to an unredeemed pledge vests in the pawnbroker only after three months, and no sale may occur before that period runs (§ 12-95).
Pawnbrokers may not deface serial numbers, accept items from anyone under 18, accept goods they suspect are stolen, or conduct business on Sundays (§§ 12-97 through 12-99).
Violations & Fines
Violating any provision of the Pawnbrokers Ordinance is a misdemeanor under § 12-100(A), punishable under Chapter 1 of the city code. A conviction of the pawnbroker or any of its clerks, agents, or employees triggers automatic license revocation by the City Clerk with no refund of the license fee, and § 12-100(B) bars the pawnbroker from applying for a new pawnbroker license for five years from the date of revocation.
Frequently Asked Questions
Does a Michigan secondhand dealer license cover pawnbroking in Sterling Heights?
How much interest can a Sterling Heights pawnbroker charge?
Can a pawnbroker take an item from a 17-year-old?
What happens if a pawnbroker is convicted of a crime tied to the business?
Can a denied pawnbroker applicant appeal?
Sources & Official References
Other rules in Sterling Heights
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Pawnbrokers in Nearby Cities
How other cities in Macomb County handle pawnbrokers.