Pawnbroker: New bill could put pawnshops out of business

Decatur, Ill (WAND) – Decatur Jewelry & Pawn owner Perry Lewin says a move in the Illinois legislature to possibly cap interest rates on pawnshop loans at 36% could force him to close his doors.

“It would virtually put me out of business almost immediately and every other pawnshop in Illinois,” Lewin told WAND News on Thursday. “There’s 222 pawnshops, over 1,000 employees, and this one size fits all rate cap will put all of the pawnshops out of business within a year.”

At a news conference earlier in the week Chicago lawmakers said they would attempt to pass a measure for the 36% cap. A previous attempt at capping the rate failed when the wording included payday & title loan companies but left out the pawn loan industry. The lawmakers view it as a loophole.

Perry says pawnbrokers will try to explain to lawmakers the impact on their industry in the coming weeks. It’s expected the legislature will take up the bill during a lame duck session in January.