First and foremost, as of this date there has been no federal rate cap bill filed in either the House or the Senate. If there had been, you would have already heard about it from us. On a daily basis NPA’s Washington Counsel, Cliff Andrews follows any and all things that could impact the pawn industry through continual communication with Congressional offices.
In recent meetings we have been advised to expect a 36% rate cap bill to be introduced by Sen. Jack Reed together with support from Banking Chair Sherrod Brown. We also understand that Rep. Garcia will follow with a similar measure in the House. As stated during a Team GRC webinar earlier this year, we are staying the course to seek an exclusion for pawn and proceed with a measured approach. Rest assured we are continuing our proven strategy of Pawn 101 education with Congress. Remember that legislation filed in DC is a complicated process and takes time. Team GRC is on it!
That being said, you may have heard about a news report this week quoting Senate Banking Committee Chair Sherrod Brown’s intent to put forth legislation to include a federal interest rate cap of 36% on consumer lending. Senator Brown has co-sponsored similar efforts in previous sessions of Congress that also were unsuccessful.