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 or more from four percent to five percent per thirty-day period. Additionally, the bill modifies the fee structure for loan preparation and storage, raising the maximum 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 fee of fifteen percent for loans of $50 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 charges, and informs the pledgor of their right to redeem the pledge. 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 arrangement, with payment options expanded to include online services.

Statutes affected:
Original Bill: 19.60.060, 19.60.061