Montana Pawn Regulation:
Title 31 and Local Authority

Montana regulates pawnbrokers through a combination of state statutes and local ordinances. At the state level, Title 31, Chapter 1, Part 4 of the Montana Code Annotated establishes fee limits, licensing requirements, and recordkeeping standards . Local governments—cities, towns, and counties—have separate authority to impose additional regulations, including waiting periods, identification requirements, and inspection rights.

This decentralized approach means requirements can vary between Billings, Missoula, Great Falls, and rural areas. Pawnbrokers must consult both state law and the ordinances of the jurisdiction where they operate.

PPSS is a recordkeeping tool. It does not interpret Montana law, determine compliance status, or enforce regulations. You are solely responsible for configuring the software to align with your legal obligations and for submitting correct information to local authorities.

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i 25% Fee Cap — MCA §31-1-401

MCA §31-1-401 establishes Montana's unique fee structure for pawn transactions.

Fee limitation: A pawnbroker may not charge a fee of more than 25% of the amount of the loan for a 30-day period. The same 25% cap applies to extensions of a pawn agreement for an additional 30 days.

Definition of "fee": The statute explicitly defines "fee" to include all costs or charges, including but not limited to:

Interest
Commission
Discount
Storage
Care of property
Purchase option

No separate charges may be added outside the 25% cap.

Licensing threshold: A person may not carry on the business of pawnbroker by receiving goods pawned or in pledge for loans at any rate of interest above 10% a year without first obtaining a license . This creates a licensing trigger distinct from the fee cap.

Civil enforcement: Charging fees above the 25% cap results in forfeiture of double the amount of the fee. If the excessive fee has been paid, the customer may recover double the fee paid plus reasonable attorney fees. Action must be brought within two years, following written demand.

i Vehicle Title Prohibition — MCA §31-1-401(4)

MCA §31-1-401(4)(c) contains a distinctive prohibition: Unless licensed as a consumer loan licensee or deferred deposit loan licensee, a pawnbroker may not "receive the title to a motor vehicle for the purpose of a pawn transaction or in pledge for a loan".

Practical effect: Traditional vehicle title loans are prohibited for pawnbrokers operating under the standard pawn license. This is a significant restriction compared to many other states.

Related prohibitions: The same section also prohibits:

Cashing or advancing money for postdated checks in exchange for a fee .
Using access to deposit accounts as security for credit .
Engaging in devices to evade the law, including disguised loans or leaseback transactions .

i Register Requirement — MCA §31-1-402

MCA §31-1-402 requires every pawnbroker to keep a register containing, for every article pawned or purchased :

The date of the pawning or purchasing .
The date when the article must be redeemed .
The name of the person who pawned or sold the article .
The amount loaned on or paid for the article .

The register must be made available for inspection and examination by any peace officer.

i Municipal Authority — MCA §7-21-4207

MCA §7-21-4207 grants city or town councils explicit power to require the owners and keepers of pawn, secondhand, and junk shops to keep a record of all articles purchased or pawned to them.

Inspection rights: The record and the articles purchased or pawned are subject to the inspection of all police officers of the city or town.

Local ordinances: Cities may impose additional recordkeeping requirements beyond the state register statute. Pawnbrokers should obtain the specific requirements from their municipal police department.

i County Authority (Unincorporated Areas) — MCA §7-21-2120

MCA §7-21-2120 authorizes boards of county commissioners to regulate pawnbrokers located outside the boundaries of an incorporated city or town.

Permissible regulations include:

Standards for recordkeeping for all pawns, purchases, and sales .
A provision for a waiting period to allow investigators time to examine merchandise .
Required forms of identification needed by persons pledging or selling articles .
Penalty provisions for pawnbrokers who fail to comply .

Definition of pawnbroker: The statute defines pawnbroker as a person engaged in loaning money on personal property, personal security, pawns, or pledges, OR engaged in purchasing articles and reselling or agreeing to resell to the vendors at prices agreed on at or before purchase . This definition specifically includes repurchase agreements.

Ordinance requirement: Any county regulation must be adopted by ordinance substantially complying with general ordinance adoption procedures.

i Montana Jurisdictions — Local Considerations

Billings (Yellowstone County): Montana's largest city; pawnbrokers should consult Billings city code and police department for specific reporting requirements.

Missoula (Missoula County): City ordinances may impose additional recordkeeping or waiting periods.

Great Falls (Cascade County): Local requirements may differ from other cities.

Butte-Silver Bow (consolidated government): Unified city-county jurisdiction with combined authority.

Rural counties (unincorporated): County commissioners may have adopted ordinances under §7-21-2120. Pawnbrokers should check with county clerk or sheriff's office.

This information is based on publicly available statutes. Local requirements change, and interpretations vary. You must confirm current licensing and reporting obligations with the city or county where you operate.

i Stolen Property — 30-Day Hold and Administrative Warrant

MCA §46-5-212 establishes a specific procedure when property is suspected stolen.

30-day hold requirement: When a peace officer informs a pawnbroker that property pawned or purchased is stolen property, the pawnbroker shall hold the property for 30 days upon issuance of an administrative warrant by a peace officer.

Administrative warrant defined: A warrant issued by the administrative head (or designee) of the investigating agency, describing the property to be held, and stating that the pawnbroker shall hold the property for 30 days from receipt.

Surrender after 30 days: Following the expiration of the 30-day period, the pawnbroker shall surrender the property to the peace officer upon demand. The officer must provide a receipt.

Appeal right: During the 30-day period, the pawnbroker may appeal the validity of the administrative warrant in justice's court or municipal court.

Criminal penalty: MCA §45-6-314 provides that a pawnbroker who allows stolen property to be sold, bartered, or disposed of after a peace officer has requested the property be held for 30 days commits theft as defined in §45-6-301.

Three Editions — One Philosophy: Pay Once, Own It

All editions include tools to help you organize pawn data and export records. No edition automatically complies with any Montana law or local ordinance; you are responsible for proper configuration and submission.

Deluxe Edition

$695 once
Pawns, buy-outs, reminders, forfeits, payments, redemptions. Data export capability. Plain paper ticket printing. Suitable for single-terminal shops.

Diamond Edition

$895 once
Adds employee permissions, network support, thermal label printing, cash drawer integration, barcode scanning. For multi-user shops.

24karat Edition

$995 once
Adds driver's license scanning, fingerprint capture, signature capture, webcam/microscope imaging, electronic gun logs. Peripheral integration for shops that choose these tools.

i Montana LEADS & Police Reporting

Reporting authority: Montana does not have a single statewide electronic reporting mandate. Reporting requirements are established at the municipal or county level under §7-21-4207 and §7-21-2120.

Local reporting formats: Cities and counties may prescribe specific forms or electronic formats for pawn transaction reporting. Some Montana jurisdictions participate in LEADS Online; others maintain direct reporting systems.

Inspection rights: Regardless of reporting frequency, peace officers have statutory authority to inspect pawn records and articles on demand.

Agencies that may receive reports:

Billings Police Department
Missoula Police Department
Great Falls Police Department
Butte-Silver Bow Law Enforcement
County sheriff's offices (for unincorporated areas)

PPSS and reporting: The software can export transaction data in delimited text formats. If your local agency provides a file layout specification (field order, delimiters, header rows), you may be able to configure your export to match. PPSS does not automatically format exports for any specific Montana agency; you are responsible for testing and validation.

Fees: PPSS does not charge per report or per transaction. LEADS Online or local agencies may assess fees for participation; those fees are not paid to or collected by PPSS.

i Military Lending Act — 36% APR Cap

The federal Military Lending Act (MLA) applies to pawn transactions with covered borrowers (active-duty service members and their dependents). The APR, including pawn service charges, may not exceed 36%.

Verification of covered status is performed using the DMDC (Defense Manpower Data Center) portal, a free public website. Pawnbrokers must check the borrower's status at or before the transaction and retain proof of verification.

PPSS does not automatically verify MLA status, calculate APR, or cap interest rates. Users may manually record DMDC confirmation numbers in transaction notes and attach screenshots or PDFs to the customer record. Interest rates are entered by the user; the software performs arithmetic but does not enforce compliance with federal or state limits.

Hardware Compatible with PPSS

PPSS works with common off-the-shelf peripherals. No proprietary hardware is required.

Printers: Any Windows printer (inkjet, laser). Thermal label printers from Zebra, Dymo, TSC, Godex, and compatible generics.
Scanners: Driver's license scanners (1D/2D barcode). TWAIN-compatible document scanners.
Fingerprint: SecuGen biometric devices.

Cash Drawers: POS-X, Star, Epson, or generic drawers with RJ11 interface.
Signature Pads: Topaz Systems models.
Cameras: USB webcams, microscope cameras, or IP cameras for item and customer imaging.

Montana reporting note: Some Montana jurisdictions may have specific requirements for report format, identification scanning, or image submission. Pawnbrokers are responsible for contacting local law enforcement to obtain current specifications and confirming that their equipment and export settings meet those requirements. PPSS captures and stores data directly from connected devices; you must configure your exports to meet agency expectations.

View full hardware compatibility list ?

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Montana Pawnbrokers — In Their Own Words

"We almost made a costly mistake with vehicle titles. Our shop in Billings was asked to do a title loan, and we didn't know Montana law explicitly prohibits it under §31-1-401. A customer told us, and we checked—sure enough, unless you have a consumer loan license, you cannot take vehicle titles. We now refer those customers elsewhere. The software won't stop you from entering a vehicle transaction; you have to know the law."

— Yellowstone Pawn, Billings, MT

"The 25% fee cap is straightforward, but the definition of 'fee' matters. We used to charge a separate 'storage fee' on top of interest, until a customer threatened suit under §31-1-401. The statute says fee includes storage, care of property, everything. Now we bundle it all into one 25% charge. The software lets us set the rate, but we had to understand what Montana considers a fee."

— Big Sky Loan, Missoula, MT

"We're outside city limits in a rural county, so we fall under county commission authority per §7-21-2120. The county hadn't adopted any pawn ordinances, but the sheriff still wanted weekly reports. We worked with them directly to agree on a format—simple Excel spreadsheet with date, name, item, amount. The software exports CSV, we convert, and it works. The key was talking to local law enforcement, not assuming the state statute was the only rule."

— Prairie Hills Pawn, rural Montana

These are real experiences shared by Montana customers. Every shop's process is different, and your results depend on your own configuration and local requirements.

Why Some Montana Pawn Shops Choose PPSS

1. No monthly fees. You pay once. No one can raise your price or turn off your access.

2. Your data is stored locally. Customer records and item images remain on your own computers. You control backup, retention, and deletion.

3. Works without internet. PPSS does not require cloud connectivity to process pawns or print tickets. Internet is only needed for electronic reporting or DMDC lookup.

4. Flexible fee configuration. You can set interest/fee rates manually. The software performs calculations based on the numbers you enter; you are responsible for ensuring rates comply with Montana's 25% cap and all-inclusive fee definition.

5. Register export. Easy data export helps you comply with local reporting requirements or provide registers for police inspection as required by §31-1-402 and local ordinances.

6. No per-report fees. We do not charge for each export or submission. Any fees assessed by third-party reporting services are separate.

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