U.S. Senate Bill Could Close Pawn Shops

Back to News
Updated: 9:44 AM Apr 11, 2009 U.S. Senate Bill Could Close Pawn Shops Front Royal, Va. Pawn shops are seeing heavy traffic, partly due to the poor economy, but a new U.S. Senate bill could force them to shut down. Posted: 5:44 PM Apr 10, 2009

Font Size:

Pawn shops are seeing heavy traffic, partly due to the poor economy, but a new U.S. Senate bill could force them to shut down.

The bill, introduced by Sen. Richard Durbin, D-Illinois, could cap consumer interest rates at 36 percent.

Short term loans like those given by pawn shops fall under this legislation.
Pawn shop owner John Hoying, owner of Royal Pawn in Front Royal, says that amount won't cover the cost of processing the loan.

Hoying says pawn shops are an important life line.

"You close a pawn shop, people won't be able to go out and buy their medications, won't be able to pay their copay for the doctors that they have to pay for their children who are sick," says Hoying. "I've had people pawn items so that they could get diapers and baby formula."

A Website has been launched to let people voice their concerns about this bill. Click on the link below to learn more.

Latest Comments

Posted by: Cas Location: Arizona on Oct 27, 2010 at 12:02 PM

Amen Joseph! People walk into a pawn knowing what they are doing. If they're not able to pay back their loans, it's on them. Pawn shops are just like any other business. People are not forced to use them. Gun will find their ways onto our streets regardless if pawn shops are closed or not. At least background checks are run through pawn shops. Pawn shops are not any different than any other financial institution that the public has loans through...you don't pay, your items get repossesed. Nothings free. The government wants to start controlling everything that we do. If we keep letting them take away our rights, we'll soon be a communist country!! Be careful what you ask for!

Posted by: David Location: Harrison on Aug 18, 2010 at 12:29 AM

First, if pawns close the guns DO NOT GO BACK ON THE STREET, Crime is still on the rise anyway, because of the Economy, and the IDIOT we all know who caused it by going on a spending spree. There is a good, and bad side to this, as there will be less places for the criminal to sell his ill gotten gains, and less places for a person to get some extra money, yet I have done it in yard sales and selling to flea markets. It's time to put a cap on the Interest rates they charge. If you pay the interest ea. Mo. on an item that pawned for $150.00 you pay back $30.00 if you need to pay another Mo. at $30.00 then your $150.00 Item cost you $210.00 or you loose it. So your paying a lot MORE of your hard earned money to retrieve it than you borrowed. I know I use to be in this biz. Do the math. If you make the same money ea Mo. your going to be that much shorter next Mo. getting the Item out, so you need to put something else IN to make ends meet this MO. Putting a cap on interest Y close N

Posted by: Joseph Location: Illinois on Jul 21, 2009 at 04:55 PM

TO JOHNATHAN .. MOST MORONIC COMMENT I'VE EVER HEARD TO SHUT DOWN ALL PAWN SHOPS ! FOOD STAMPS BEING THE ANSWER TO THE 40 MILLION USERS OF PAWN SHOPS ? PLEASE ! NO ONE FORCES ANYONE TO USE A PAWN SHOP,YOU ARE ALLOWED TO GET YOUR ITEM BACK WITH A PAWN OR YOU ARE ALLOWED TO SELL USUALLY AT A LITTLE HIGHER PRICE. SOUNDS TO ME LIKE JOHNNY BOY PROBABLY OWNS A PAYDAY LOAN AND HATES THE COMPETITION FROM A PAWN SHOP THAT CHARGES A FRACTION OF THE INTEREST HE CHARGES !

Click here to post or read all 6 comments.