Pawnbroker groups ask for modest fee increases; senators press affordability concerns
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Summary
House Bill 1269 would shorten the pawn-loan redemption term from 90 to 60 days, raise interest on loans over $100 from 4% to 5% per 30 days, standardize document-prep fees at 15% for loans $50+, increase optional storage fees (including firearms), and authorize online payments. Industry witnesses said the changes are modest; several senators questioned whether combined changes could substantially raise costs for borrowers.
House Bill 1269 would revise statutory caps and fee structures for pawn loans, and industry representatives told the Senate committee the changes are necessary to keep small pawn shops viable as operational costs rise.
Staff described the substitute—ill as making five principal changes: reducing the loan term from 90 to 60 days; increasing the interest rate cap for loans greater than $100 from 4% to 5% per 30 days; consolidating the document-preparation fee to 15% for loans $50 or more; increasing optional storage fees (including a higher daily fee for firearms); and adding an online payment option when both parties agree to extend a loan.
Rep. David Hackney (11th Legislative District), the bill sponsor, said pawnbrokers provide emergency, nonrecourse loans for unbanked residents and play a role in returning stolen property through registration with law enforcement. "They're asking for a modest increase in interest rates from 4% to 5%...and a modest change in the term of the loan from 90 to 60 days," Hackney said.
Multiple pawnbroker witnesses testified in support. Tamara Rancourt of the Washington State Pawnbrokers called the changes "moderate" and said they are permissive rather than mandatory. Karen Strickland, with a multistore family business, said most redemptions occur within 60 days and the industry needs relief from rising costs. Michael Tranzu (Cash America) said the national trend and CPI-adjusted caps support modernization; Nika Mihailov and others added that average loans are roughly $150–$200 and many customers are unbanked.
Several senators pressed concerns about affordability. Senator Stanford and others noted that while storage fees are dollar amounts that reflect inflation, percentage-based increases (document-prep fees and interest) are not straightforward inflation adjustments and could substantially increase borrower costs when combined. Staff and industry witnesses offered to work with senators on numbers and amendments.
The committee recorded robust public testimony and questioning from senators but no committee vote appears in the transcript.