Can a pawnshop raise the interest or add charges I wasn't told about?
Last updated: 2026-07-11 · Educational content; not legal advice.
Short answer
No — a pawnshop cannot spring undisclosed interest or fees on you after the fact. The interest and every charge must be recorded on your pawn ticket (PD 114 §11) and disclosed to you in writing before the transaction under the Truth in Lending Act (RA 3765), and RA 11765 (Financial Products and Services Consumer Protection Act, 2022) requires financial service providers to deal transparently and refund anything collected in excess of what was disclosed. PD 114 §10 itself pegs pawnshop interest to the ceilings of the Usury Law and caps the service charge — though the Usury Law interest ceilings have been suspended since 1982 (Central Bank Circular 905), so the operative controls today are BSP regulation plus full written disclosure, not a fixed statutory rate. If a charge was not on your ticket, you generally do not owe it; demand a written breakdown and dispute the difference.
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Frequently asked
Is there a legal cap on pawnshop interest?
PD 114 §10 pegs interest to the Usury Law, but the Usury Law's ceilings were suspended by CB Circular 905 in 1982, so there is no single fixed statutory rate today. Interest is set by agreement subject to BSP regulation and must be fully disclosed in writing (RA 3765); this platform does not quote a specific rate because it varies — read the rate written on your ticket.
Can they charge fees on top of interest?
Only disclosed, lawful charges. PD 114 §10 allows a service charge but caps it, and every charge must appear on your pawn ticket (§11) and be disclosed under RA 3765. An undisclosed 'penalty' or surprise fee is disputable and, if collected, refundable under RA 11765.
They raised my payoff amount — what do I do?
Ask for a written computation showing the principal, the disclosed interest rate, and each charge, and compare it against your pawn ticket. If it exceeds what was disclosed, refuse the excess, demand a refund under RA 11765, and escalate to the BSP Consumer Assistance Mechanism if unresolved.
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Your rights when you pawn an item at M Lhuillier, Cebuana Lhuillier, Palawan, or any pawnshop — the 90-day redemption period, auction of unredeemed items, lost pawn tickets, and legal charges under PD 114 and BSP supervision.