The Facts: Bill S. 500 - 36% Rate Cap and Pawn Stores
CALL TO ACTION ! We need your help to support a strong position on several proposed Bills, such as Bill S. 500 that are potentially harmful to the Pawn industry. These proposed Bills are trying to control financial businesses that have gone unregulated until now, like Check Cashing and Payday Loan centers and indirectly Pawn Stores.
The Pawn industry is regulated by Federal and State agencies, and we consider a Pawn business to be very different at it's core than the others.
•Pawn businesses have interest rates that are regulated by State agencies
•Pawn stores lend to anyone and use collateral to secure a loan, they don’t sell money
•Most loans are small, short-term loans
The new legislation will limit all Pawn store loans to 36% annual interest rate cap. Did you know cash-strapped consumers already pay on average:
- 400 percent annual interest for payday loans
- 300 percent annual interest for car title loans
- Up to 3,500 percent for bank overdraft loans
- 50 to 500 percent annual interest for loans secured by expected tax refunds
-Higher than 50 percent annual percentage interest for credit cards that charge junk fees
Congress encourages that “alternatives to predatory lending that encourage small dollar loans with minimal or no fees, installment payment schedules, and affordable repayment periods should be encouraged.” With state regulated interest rates far lower than the above listed, what better way to describe a Pawn store?
If you feel strongly that the American consumer should have the right to borrow money based outside of the banking, credit card and Payday Loan businesses, answer the CALL TO ACTION ! and find out how you can make a difference.
Visit www.PawnShopsToday.com for more information
Follow Pawn Shops Today on Facebook and Twitter
The Pawn industry is regulated by Federal and State agencies, and we consider a Pawn business to be very different at it's core than the others.
•Pawn businesses have interest rates that are regulated by State agencies
•Pawn stores lend to anyone and use collateral to secure a loan, they don’t sell money
•Most loans are small, short-term loans
The new legislation will limit all Pawn store loans to 36% annual interest rate cap. Did you know cash-strapped consumers already pay on average:
- 400 percent annual interest for payday loans
- 300 percent annual interest for car title loans
- Up to 3,500 percent for bank overdraft loans
- 50 to 500 percent annual interest for loans secured by expected tax refunds
-Higher than 50 percent annual percentage interest for credit cards that charge junk fees
Congress encourages that “alternatives to predatory lending that encourage small dollar loans with minimal or no fees, installment payment schedules, and affordable repayment periods should be encouraged.” With state regulated interest rates far lower than the above listed, what better way to describe a Pawn store?
If you feel strongly that the American consumer should have the right to borrow money based outside of the banking, credit card and Payday Loan businesses, answer the CALL TO ACTION ! and find out how you can make a difference.
Visit www.PawnShopsToday.com for more information
Follow Pawn Shops Today on Facebook and Twitter
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Posted by Pawn Shops Today at 7/8/2009 7:45 PM 
Categories: Senate Bill 500 and H.R. 1608
Tags: Pawn Shops Today short-term loans Pawn shop IRS APR Pawn store 36% apr rate cap Senate Bill 500 Credit Card APR Bank Overdraft APR Payday Loans APR National Pawnbrokers Association Bill S. 500 Car Title APR payday
Categories: Senate Bill 500 and H.R. 1608
Tags: Pawn Shops Today short-term loans Pawn shop IRS APR Pawn store 36% apr rate cap Senate Bill 500 Credit Card APR Bank Overdraft APR Payday Loans APR National Pawnbrokers Association Bill S. 500 Car Title APR payday
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