Government Relations Updates

Government Relations Updates

Government Relations Committee (GRC) Updates

(Includes all updates related to Covid-19)

Texas Office of Consumer Credit Commissioner Report

Thanks to our fellow pawnbrokers in Texas for sharing a report from their regulator, the Office of Consumer Credit Commissioner, that reflects pawn industry statistics from 2008 through 2019. Although pawnbrokers are licensed, regulated, examined, etc. in most all states, just a very few of them publish the statistical information we are required to provide.     You can download the report here.

NPA Wins Injunction Against 36% Rate Cap

NPA, IPA and Other Plaintiffs Won a Preliminary Injunction against the Illinois Department of Financial and Professional Regulation’s Attempt to Apply a 36% Rate Cap on Illinois Pawnbrokers!   September 7, 2021As many of you know, the NPA joined the Illinois Pawnbrokers Association, Cash America, Inc. of Illinois, and EZPawn Illinois, Inc. as named plaintiffs in seeking a preliminary injunction against the Illinois Department of Financial and Professional Regulation’s attempts to add pawn ...

Protecting Americans from Debt Traps

The Senate Banking, Housing and Urban Affairs Committee held a hearing on July 29, “Protecting Americans from Debt Traps by Extending the Military’s 36% Interest Rate Cap to Everyone”.    This hearing immediately followed the filing of another Senate rate cap bill on July 28th to extend the provisions of the Military Lending Act to all consumers. This bill is S. 2508 and the official text is not ...

July 2021 is “Military Consumer Month” at the CFPB

It’s Time to Review Your Military Lending Act (“MLA”) and Service Members’ Civil Relief Act (“SCRA”) Compliance Programs July 22, 2021: So, right now – in July — is a good time to review your MLA and SCRA compliance programs. The DoD’s amended MLA regulation became effective for pawn transactions on October 3, 2016. The SCRA has been in place ...

Let’s Talk About Rate Caps at Pawn Expo

NPA’s Team GRC is preparing to bring you all the news from The Hill and elsewhere at Pawn Expo. Foremost in pawnbrokers’ minds is the subject of a federal cap of 36% APR on consumer lending, and the controversy surrounding the Illinois Predatory Lending Act that was passed back in January. The need for answers and clarity of whether the pawn industry ...

New, Non-Mandatory Federal Tax Credit to Offset Costs for Small Businesses Who Provide Paid Sick Leave for Employees to Get Vaccinated or Recover from Vaccinations

April 23, 2021On April 21, 2021, President Biden announced a new federal tax credit for employers who offer full pay to employees that take time from work to get the COVID-19 vaccine and recover from the after-effects, get tested for COVID-19, and to care for a child whose school or childcare provider is closed. Like other tax credits, there is no requirement ...

SAFE BANKING ACT

Monday evening, April 19th the House passed H.R. 1996—the Secure and Fair Enforcement Banking Act of 2021 (SAFE Banking Act) with bi-partisan support. While the primary focus of this bill is to allow banks to provide services to legitimate cannabis-related businesses an additional provision is included that could benefit other industries.  For years the pawn industry has experienced bank discontinuance of accounts and ...

Review of Refiners’ Questions to Pawnbrokers about Conflict Gold

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PAYCHECK PROTECTION PROGRAM DEADLINE EXTENSION

On Wednesday, March 10 the U. S. House of Representatives Small Business Committee indicated during a hearing they are open to extending the Paycheck Protection Program’s lending authority past the current March 31, 2021 expiration date.   Chairwoman Rep. Nydia Velazquez-NY stated, “it’s clear small businesses still need help, but lingering issues in the program have created a need for Congress to consider a short-term extension.”  ...

IRS reminds businesses to report large cash transactions; e-file encouraged

WASHINGTON — The Internal Revenue Service today reminds businesses of their responsibility to file Form 8300, Report of Cash Payments Over $10,000, and encourages e-filing to help them file accurate, complete forms.   Although many cash transactions are legitimate, information reported on Form 8300 can help stop those who evade taxes, profit from drug trading, engage in terrorist financing and conduct other criminal activities. The government can often trace money from these illegal activities through payments reported ...

Understanding how to report large cash transactions

Although many cash transcations are legitimate, the government can often trace illegal activities through payments reported on complete, accurate Forms 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business. Here are facts on who must file the form, what they must report and how to report it.   Who must file  Generally, any person in a trade or business who receives ...

Federal Bills File; Background Checks on Firearms Transfers

Two bills were filed in the House of Representatives on March 1, 2021. H.R. 8 was introduced by Rep. Mike Thompson (D-CA) and is described as a ‘universal background check bill’. Although the bill contains some exceptions, it would become a criminal act for a non-licensed individual to sell, give, hand over, etc. a firearm to another person without having the transfer done by a Federal Firearms Licensee ...

New Mexico proposed 36% APR legislation does NOT include pawn

Reports from some trade associations that represent non-depository lenders, not pawn industry related, discuss bills filed in New Mexico that call for a 36% APR cap. In fact, there are 3 bills under consideration by the Legislature there that apply a 36% APR to loans made under the New Mexico Small Loan Act of 1955 and the New Mexico Bank Installment Loan Act of 1959.   Contrary to ...

TEAM GRC MONITORING STATE LEGISLATURES

Last fall the NPA Board authorized Team GRC to contract with a tracking service that would allow monitoring of all state legislatures for bills filed that may impact the pawn industry. Some state pawn associations may already have this process in place, but others may not.   This week initial bill tracking reports were prepared for 28 states and emailed to ...

PPP PROCESSING DELAYS CONTINUE

Some pawnbrokers report having received PPP loan forgiveness with no problems, while others are still waiting. One pawnbroker recently received a request from their bank of additional information needed for the SBA such as…1) Description of the business activities; 2) Tax Return; 3) Company marketing information. Also reported was a SBA ‘Hold Code’ notation “NAICS 522-Credit Intermediation-Borrower appears to be engaged in lending-Potential eligibility issue.”   The ...