Bill Summary – FastDemocracy

H-2609.1
                           SUBSTITUTE HOUSE BILL 1910
     State of Washington         68th Legislature         2024 Regular Session
     By House Consumer Protection & Business (originally sponsored by
     Representatives Walen, McClintock, Chapman, Cheney, Reeves, and
     Hackney)
     READ FIRST TIME 01/23/24.
      AN ACT Relating to pawnbroker fees         and   interest   rates;   and
  amending RCW 19.60.060 and 19.60.061.
  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
     Sec. 1.   RCW 19.60.060 and 2015 c 294 s 1 are each amended to
 read as follows:
     All pawnbrokers are authorized to charge and receive interest and
 other fees at the following rates for money on the security of
 personal property actually received in pledge:
     (1) The interest for the loan period shall not exceed:
     (a) For an amount loaned up to $9.99 - interest at $1.00 for each
 thirty-day period to include the loan date.
     (b) For an amount loaned from $10.00 to $19.99 - interest at the
 rate of $1.25 for each thirty-day period to include the loan date.
     (c) For an amount loaned from $20.00 to $24.99 - interest at the
 rate of $1.50 for each thirty-day period to include the loan date.
     (d) For an amount loaned from $25.00 to $34.99 - interest at the
 rate of $1.75 for each thirty-day period to include the loan date.
     (e) For an amount loaned from $35.00 to $39.99 - interest at the
 rate of $2.00 for each thirty-day period to include the loan date.
     (f) For an amount loaned from $40.00 to $49.99 - interest at the
 rate of $2.25 for each thirty-day period to include the loan date.
                                       p. 1                            SHB 1910
     (g) For the amount loaned from $50.00 to $59.99 - interest at the
 rate of $2.50 for each thirty-day period to include the loan date.
     (h) For the amount loaned from $60.00 to $69.99 - interest at the
 rate of $2.75 for each thirty-day period to include the loan date.
     (i) For the amount loaned from $70.00 to $79.99 - interest at the
 rate of $3.00 for each thirty-day period to include the loan date.
     (j) For the amount loaned from $80.00 to $89.99 - interest at the
 rate of $3.25 for each thirty-day period to include the loan date.
     (k) For the amount loaned from $90.00 to $99.99 - interest at the
 rate of $3.50 for each thirty-day period to include the loan date.
     (l) For loan amounts of $100.00 or more - interest at the rate of
 ((four)) five percent for each thirty-day period to include the loan
 date.
     (2) The fee for the preparation of loan documents, pledges, or
 reports required under the laws of the United States of America, the
 state of Washington, or the counties, cities, towns, or other
 political subdivisions thereof, shall not exceed:
     (a) For the amount loaned up to $4.99 - the sum of $1.50.
     (b) For the amount loaned from $5.00 to $9.99 - the sum of $3.00.
     (c) For the amount loaned from $10.00 to $14.99 - the sum of
 $4.00.
     (d) For the amount loaned from $15.00 to $19.99 - the sum of
 $4.50.
     (e) For the amount loaned from $20.00 to $24.99 - the sum of
 $5.00.
     (f) For the amount loaned from $25.00 to $29.99 - the sum of
 $5.50.
     (g) For the amount loaned from $30.00 to $34.99 - the sum of
 $6.00.
     (h) For the amount loaned from $35.00 to $39.99 - the sum of
 $6.50.
     (i) For the amount loaned from $40.00 to $44.99 - the sum of
 $7.00.
     (j) For the amount loaned from $45.00 to $49.99 - the sum of
 $7.50.
     (k) For the amount loaned ((from)) of $50.00 ((to $99.99)) or
 more - fifteen percent of the loan amount.
     (((l) For the amount loaned from $100.00 to $249.99 - thirteen
 percent of the loan amount.
                                     p. 2                         SHB 1910
     (m) For the amount loaned from $250.00 to $499.99 - ten percent
 of the loan amount.
     (n) For the amount loaned from $500.00 to $999.99 - eight percent
 of the loan amount.
     (o) For the amount loaned from $1000.00 to $1499.99 - seven and
 one-half percent of the loan amount.
     (p) For the amount loaned from $1500.00 to $1999.99 - seven
 percent of the loan amount.
     (q) For the amount loaned of $2000.00 or more - six percent of
 the loan amount.))
     (3) For each thirty-day period, a pawnbroker may charge:
     (a) A storage fee of (($5.00)) $10.00; and
     (b) An additional fee of (($5.00)) $10.00 for storing a firearm.
     (4) Fees under subsection (2) of this section may be charged one
 time only for each loan period; no additional fees, other than
 interest allowed under subsection (1) of this section and storage
 fees allowed under subsection (3) of this section, shall be charged
 for making the loan.
     A copy of this section, set in twelve point type or larger, shall
 be posted prominently in each premises subject to this chapter.
     Sec. 2.   RCW 19.60.061 and 2007 c 125 s 2 are each amended to
 read as follows:
     (1) The term of the loan shall be for a period of ((ninety)) 60
 days to include the date of the loan.
     (2) A pawnbroker shall not sell any property received in pledge,
 until a minimum of ((ninety)) 60 days has expired. However, if a
 pledged article is not redeemed within the ((ninety)) 60-day period
 of the term of the loan, the pawnbroker shall have all rights, title,
 and interest of that item of personal property. The pawnbroker shall
 not be required to account to the pledgor for the proceeds received
 from the disposition of that item. Any provision of law relating to
 the foreclosures and the subsequent sale of forfeited pledged items,
 shall not be applicable to any pledge as defined under this chapter,
 the title to which is transferred in accordance with this section.
     (3) Every loan transaction entered into by a pawnbroker shall be
 evidenced by a written document, a copy of which shall be furnished
 to the pledgor. The document shall set forth the term of the loan;
 the final date on which the loan is due and payable; the loan
 preparation fee; the storage fee; the firearm fee, if applicable; any
                                     p. 3                         SHB 1910
 other fee allowed under law that is charged; the amount of interest
 charged every thirty days; the total amount due including the
 principal amount, the preparation fee, and all interest charges due
 if the loan is outstanding for the full ((ninety)) 60 days allowed by
 the term; and the annual percentage rate, and shall inform the
 pledgor of the pledgor's right to redeem the pledge at any time
 within the term of the loan.
     (4) If a person who has entered into a loan transaction with a
 pawnbroker in this state is unable to redeem and repay the loan on or
 before the expiration of the term of the loan, and that person wishes
 to retain his or her rights to use that item by rewriting the loan,
 and if both parties mutually agree, an existing loan transaction may
 be rewritten into a new loan, ((either in person or by mail)) and
 payment may be accepted in person, by mail, or through an online
 payment service. All applicable provisions of this chapter shall be
 followed in rewriting a loan, except that where an existing loan is
 rewritten by mail RCW 19.60.020(1) (a) and (g) shall not apply.
                                  --- END ---
                                     p. 4                         SHB 1910
Statutes affected: 
Original Bill: 19.60.060, 19.60.061
Substitute Bill: 19.60.060, 19.60.061