Plain English Breakdown
The official source material does not provide specific details about how the interest rate will be increased or what the new limits are. The exact impact on pawnbrokers and borrowers is unclear until more information is provided.
Pawnbroker Interest Rates
This law changes the maximum interest rate that pawnbrokers can charge on loans.
What This Bill Does
- Updates sections 8 and 9 of an old law from 1917 about pawnbroking rules.
Who It Names or Affects
- Pawnbrokers who make loans using personal items as collateral.
Terms To Know
- pawnbroker
- A person or business that lends money in exchange for holding onto someone's personal property until the loan is paid back.
- interest rate
- The percentage of a loan amount that is charged as extra cost by the lender over time.
Limits and Unknowns
- This bill has not yet been passed into law and needs to go through more steps in the legislative process.
- It does not specify how much higher the interest rate can be, only that it will increase.