Report - 2025 03 26 A33141 D285974 Bill Report 1269 Sbr Bft Ta 25
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- Congressional materials
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- 2025-03-26
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- 2025 03 26 A33141 D285974 Bill Report 1269 Sbr Bft Ta 25
Summary
A Washington Senate Bill Report on HB 1269, concerning pawnbroker fees and interest rates, as of March 13, 2025, prepared by staff of the Senate Committee on Business, Financial Services & Trade. It records that the bill, sponsored by Representatives Hackney, McClintock and Leavitt, passed the House on 2/13/25 by 91-3. The report describes current law, including the 90-day loan term and loan preparation fee schedule, and summarizes the bill: raising the interest rate on loans of $100 or more from 4 percent to 5 percent, raising the storage fee and the firearm storage fee to $10, setting a 15 percent preparation fee for loans of $50 or more, and cutting the loan term to 60 days. It also allows payment through an online payment service and summarizes supportive public testimony.
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Cite this document
“Report - 2025 03 26 A33141 D285974 Bill Report 1269 Sbr Bft Ta 25.”
Original at app.leg.wa.gov, dated 2025-03-26. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2025-03-26-2025-03-26-a33141-d285974-bill-report-1269-sbr-bft-ta-25/
, SHA-256 47a1d869b86cd1feec9cf08326073f5ed665fb68a4c65247593cceafc7405d80.Full text
SENATE BILL REPORT
HB 1269
As of March 13, 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.
Staff Summary of Public Testimony: PRO: Pawnshops provide a vital financial service
to our communities. Rates have remained stagnant and puts tremendous pressure on our
businesses. These loans provide a lifeline to people with critical expenses that they would
otherwise be unable to pay for.
The Pawnbroker model is unique. Nonrecourse simple interest loans. No credit checks.
They do not perpetuate a cycle of debt. A moderate increase in rates and a modernization of
statutes would be greatly appreciated. Pawn shops work closely with police to monitor
inventory for stolen merchandise. The FDIC did a study showing that less than 40
percent of people have money for emergencies. In order to keep our doors open, we need
have the ability to raise their rates. Prices have gone up. It has been ten years since
pawnbrokers have had their last raise.
There are millions of unbanked people. Lots of time people need a quick loan. There are
Senate Bill Report -4- HB 1269
no repercussions if a person comes back and pays off their loan. The typical loan is for
$180. The rates are pretty low and it is pretty difficult to get a loan from anyone else at
these dollar amounts. It is becoming difficult to employ people due to cost pressures. This
bill will allow certain pawnbrokers to stay open. Pawnshops are community establishments
where most customers live within one mile of where they are located. There are so many
people who need nonrecourse loans, and pawnbrokers help people who would otherwise be
unbanked.
Persons Testifying: PRO: Karen Strickland, Pawn 1 Inc.; Sam Lax, Pawn 1, Inc; Nika
Mihailov, Kittitas County Trading Co.; Janelle Morehart, Washington State Pawnbrokers
Association / Ponders Pawnbrokers; Tamara Rancore, WA St Pawnbrokers Association;
Carli Karlson, Wa St. Pawnbrokers Association Secretary; Michael Transue, Cash America.
Persons Signed In To Testify But Not Testifying: No one.
Senate Bill Report -5- HB 1269
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- Original
- app.leg.wa.gov