No more pawn shops?
POSTED: Friday, April 17, 2009 - 5:21pm
UPDATED: Thursday, April 8, 2010 - 2:57am
TYLER-It's a day some pawn shop owners never thought would come. One U.S. Senator has proposed a bill that if passed, would do away with pawn shops all together.
Experts say if this bill passes most pawn shops will shut down and 50 million Americans will be left with nowhere to get a short term loan.
Senator Richard Durbin of Illinois (D) proposed the bill designed to protect consumers from what he calls "unreasonable credit rates."
It would limit consumer interest rates to 36 percent.
Experts say the new interest a customer would have to pay on the loan wouldn't be near enough to keep pawnshops in business.
John Duncan of JC Pawn in Tyler told us if pawn shops close, people who just need cash fast aren't going to be able to get it.
"That's one thing we provide for people is a smaller loan," Duncan said. "They don't have to go through a background check, we don't care about their credit, its more on going by people's word and they're not going to be able to go have that luxury."