The bill amends existing laws regarding pawnbroker fees and interest rates in Washington State, specifically updating RCW 19.60.060 and 19.60.061. Key changes include an increase in the maximum interest rate for loans of $100.00 or more from four percent to five percent for each thirty-day period. Additionally, the bill modifies the fee structure for loan preparation and storage, raising the storage fee from $5.00 to $10.00 and establishing a new fee of $10.00 for storing firearms. The bill also simplifies the fee structure by removing several previous percentage-based fees for larger loan amounts, consolidating them into a flat rate of fifteen percent for loans of $50.00 or more.

Furthermore, the bill reduces the loan term from ninety days to sixty days, which also applies to the minimum period before a pawnbroker can sell pledged property. It mandates that every loan transaction must be documented in writing, detailing all fees and interest, and informs the pledgor of their right to redeem the pledge within the loan term. The bill allows for the rewriting of loans, enabling borrowers to retain their rights to the pledged item by mutually agreeing to a new loan, with payment options expanded to include online services.

Statutes affected:
Original Bill: 19.60.060, 19.60.061