U.S. Senate Bill Could Close Pawn Shops

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.

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