Senate Bill Report — HB 1269
- Issuer
- Congressional materials
- Document type
- Report
- Date
- 2025-03-13
- Case
- 2025 03 13 A32964 D283747 Bill Report 1269 Sba Bft 25
Summary
A Senate Bill Report on HB 1269, an act relating to pawnbroker fees and interest rates, as of March 5, 2025, prepared by nonpartisan staff of the Senate Committee on Business, Financial Services & Trade. The report states the bill passed the House on 2/13/25 by 91-3 and was sponsored by Representatives Hackney, McClintock and Leavitt. The background section describes current Washington pawnbroker law, including a 90-day loan term and a table of loan preparation fees. Under the bill, the interest rate for loans of $100 or more rises from 4 percent to 5 percent per 30-day period, the storage fee and the firearm storage fee each increase to $10, and the loan term falls from 90 days to 60 days. The bill also allows payment on rewritten loans through an online payment service and carries no appropriation.
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Full text
SENATE BILL REPORT
HB 1269
As of March 5, 2025
Title: An act relating to pawnbroker fees and interest rates.
Brief Description: Concerning pawnbroker fees and interest rates.
Sponsors: Representatives Hackney, McClintock and Leavitt.
Brief History: Passed House: 2/13/25, 91-3.
Committee Activity: Business, Financial Services & Trade: 3/13/25.
Brief Summary of Bill
• Increases certain interest rates and fees that pawnbrokers are authorized
to charge and receive interest on.
• Decreases the duration of the term of pawnbroker loans from 90 days to
60 days.
• Expands the payment options for persons unable to repay a loan prior to
the expiration of the loan when the person is able to mutually agree upon
rewritten loans with a pawnbroker.
SENATE COMMITTEE ON BUSINESS, FINANCIAL SERVICES & TRADE
Staff: Clint McCarthy (786-7319)
Background: Washington regulates the business of pawnbrokers under statute. There is no
state licensing requirement for pawnbrokers. Local governments may issue licenses for
pawnbroker businesses and have the authority to enact provisions that are more restrictive
than those in statute. A pawnbroker is defined as every person engaged, in whole or in part,
in the business of loaning money on the security of pledges, deposits, or conditional sales of
personal property, or the purchase and sale of personal property.
This analysis was prepared by non-partisan legislative staff for the use of legislative
members in their deliberations. This analysis is not part of the legislation nor does it
constitute a statement of legislative intent.
Senate Bill Report -1- HB 1269
The statutory term of a pawnbroker loan is 90 days. Every loan transaction entered into by
a pawnbroker must be a written agreement, and a copy must be furnished to the pledger of
the property. Interest may be charged every 30 days, and a preparation fee may be charged
once for the term of the loan. If a pledged article is not redeemed within the 90-day term of
the loan, the pawnbroker has all rights, title, and interest of that item of personal property.
The pawnbroker is not required to account to the pledger for any proceeds received from the
disposition of that property. If a person is unable to redeem and repay the loan before the
expiration and that person wishes to retain their rights to their collateral, the person and the
pawnbroker may mutually agree on a new loan, and the person may pay in person or
through the mail.
For each 30-day period a pawnbroker may charge:
• an interest rate of $4 for loans of $100 or more;
• a storage fee of $5; and
• an additional fee of $5 for storing a firearm.
The table below illustrates the fees for the preparation of loan documents that a pawnbroker
is allowed to charge:
Maximum Charge
Loan Amount Allowed for Loan
Preparation Fees
Up to $4.99 $1.50
$5-$9.99 $3.00
$10-$14.99 $4.00
$15-$19.99 $4.50
$20-$24.99 $5.00
$25-$29.99 $5.50
$30-$34.99 $6.00
$35-$39.99 $6.50
$40-$44.99 $7.00
$45-$49.99 $7.50
15 percent of the loan
$50-$99.99
amount
13 percent of the loan
$100-$249.99
amount
10 percent of the loan
$250-$499.99
amount
$500-$999.99 8 percent of the loan
Senate Bill Report -2- HB 1269
amount
7.5 percent of the loan
$1000-$1499.99
amount
7 percent of the loan
$1500-$1999.99
amount
6 percent of the loan
$2000 or more
amount
Summary of Bill: Increases the Interest Rates and Fees that Pawnbrokers are Authorized
to Charge and Receive Interest On. For each 30-day period of the loan:
• the interest rate for a loan of $100 or more is increased from 4 percent to 5 percent;
• the storage fee is increased from $5 to $10; and
• the additional fee for storing a firearm is increased from $5 to $10.
The document preparation fee for any loan greater than $50 or more is 15 percent. The
provisions that lowered the maximum percentage pawnbrokers could charge below 15
percent for loans larger than $100 are eliminated. The table below illustrates the fees for
the preparation of loan documents that a pawnbroker would be able to charge under the
provisions of the bill:
Maximum Charge
Loan Amount Allowed for Loan
Preparation Fees
Up to $4.99 $1.50
$5-$9.99 $3.00
$10-$14.99 $4.00
$15-$19.99 $4.50
$20-$24.99 $5.00
$25-$29.99 $5.50
$30-$34.99 $6.00
$35-$39.99 $6.50
Senate Bill Report -3- HB 1269
$40-$44.99 $7.00
$45-$49.99 $7.50
15 percent of the loan
$50 or more
amount
Decreases the Duration of Time Before a Pawn Broker Can Sell Property Received as
Pledge for a Loan. The term of a loan under which a pawn broker shall not sell any property
received in pledge is decreased from a period of 90 days to 60 days.
Expands the Payment Options for Persons Unable to Repay a Loan Prior to the Expiration
of the Loan When the Person is able to Mutually Agree Upon Rewritten Loans with a
Pawnbroker. For persons that are unable to redeem and repay a loan before the expiration of
the loan and have entered into a mutually agreed upon new loan, the person may pay the
pawnbroker through an online payment service.
Appropriation: None.
Fiscal Note: Available.
Creates Committee/Commission/Task Force that includes Legislative members: No.
Effective Date: Ninety days after adjournment of session in which bill is passed.
Senate Bill Report -4- HB 1269
File and source
- File
- 2025-03-13_a32964_d283747_bill-report-1269-sba-bft-25.pdf
- Size
- 10,738 bytes
- SHA-256
- 653220e37db7f75c89e6c3616e5b9713171e2a7acacc2c5a809f4170aa7b92b1
- Original
- app.leg.wa.gov