Assemblyman Jose Medina. (Kevin Sanders for California Globe)
RECAP: AB 1186, Increasing The Fees In Pawn Shops Across The State
Processing charges and fees for pawned items are to go up by the end of the year.
By Evan Symon, September 26, 2019 6:36 pm
Pawn shops have become the latest part of the loan industry to see favorable new laws.
What is it?
The bill increases payment and fee amounts instituted at pawn shops. Previous law stipulated that loan setup fees could not be more that $7.50 or 3.5% of the loan amount, and could not be higher than $30. Under AB 1186, it’s been upped to $7.50 or 3.% of the loan, not to go past $90.
Processing charges on guns would go up from $4 to $20, while noticing fees for pawned items shoot up from $3 to $5.
Additional charges for handling and storage were also bumped up under the new bill.
Who Backed It?
Assemblyman Jose Medina (D-Riverside) was behind the bill, introducing it to the Assembly at the beginning of the year. Assemblyman Medina authored the bill after calls from pawn shop owners about how other parts of the lending industry, such as payday loans and title loans, have eaten into the profits of pawn shops.
“AB 1186 makes changes that make it possible for the pawnbroker industry to remain financially viable in today’s lending market,” said Assemblyman Medina shortly before the Assembly vote on the bill.
Pawn shop owners and debt groups have supported the bill, who want pawn shops to be not crowded out by the larger loan sectors and remain an option for those who need a loan.
Despite threatening to even up revenue with other loaning places, there has been no real opposition against AB 1186.
What happened?
The lack of any opposition made AB 1186 an unusually fast-passed bill. Made from a bill into a law in less than 6 months, AB 1186 didn’t bring in detractors from the Assembly or the Senate. Despite being about raising fees in a well-used industry in California, no amendments were added to the bill, with no known debate over the bill happening either.
Voting was unanimous in both the Assembly and the Senate, surprising those who expected the loan industry to get involved.
Current Status:
Signed into Law.
Governor Gavin Newsom signed AB 1186 into law on August 30th, when it immediately became into law. All higher fees in pawn shops are currently in place statewide.
- Workwear Apparel Giant Dickies Announces Surprise HQ Move to California From Texas - November 21, 2024
- 5th District Alameda County Supervisors Race Is Still Too Close To Call - November 21, 2024
- 13th House District Race Between Duarte, Gray Within 351 Votes With 98% Of The Vote In - November 21, 2024
RELATED ARTICLES
-
-
March 5, 2020 -
June 17, 2020
Pawn shops are a necessity for a large sector of the population. It is more feasible for those people to attempt a loan through a local pawn shop rather than a bank. It is more convenient and has a smaller impact on their every day life than a bank loan would. http://www.GemCoCoins.com
Shopping in pawn shops can be a lot of fun! Think of it as a treasure hunt. You can venture into a pawn shop on any given day and find something that you want, or something you didn’t realize you wanted until you laid your eyes upon it. There is just so much to look at in pawn shops. You may even come across some treasure that has it’s own personal history lesson. http://www.GemCoCoins.com
Do you enjoy garage sales? Or maybe you like perusing estate sales? Then you should definitely give pawn shops a try! You can find all kinds of treasures in pawn shops. If you are looking for jewelry, coins, guns or nearly anything of value, give them a shot! http://www.GemCoCoins.com
Pawn shops get a dirty reputation in the movies and on television. They’re always made to look like seedy, problematic places that are a blight on society. In my experience, that couldn’t be further from the truth. They can actually kind of fun! Nearly anything you could thing of, from chainsaws to engagement rings, could be found inside these stores. Next time you’re driving by one, find the a place to turn around… then park and go inside. See for yourself what treasures a pawn shop may behold. http://www.GemCoCoins.com
Can you believe the prices nowadays?? I mean gas, groceries, cars, the prices are nuts! As far as I’m concerned, anything I can find in a pawn shop, that’s where I’ll be shopping. http://www.GemCoCoins.com
Any time I need to buy something for my home, I stop and consider if I could find it at a pawn shop. This may sound unusual, but you can find so many useful things at these little stores. I’ve found musical instruments for my kids, jewelry for my wife and all kinds of household pieces. http://www.GemCoCoins.com
I have 2 kids who want to be in band this year so I’m going to have to shell out considerable amounts of money if I want to purchase brand new instruments for both of them. Instead, I think I’m just going to take a trip to our local pawn shop to see what they have on hand. This way I can save some money in the process. http://www.GemCoCoins.com
I have 2 kids who want to be in band this year so I’m going to have to shell out considerable amounts of money if I want to purchase brand new instruments for both of them. Instead, I think I’m just going to take a trip to our local pawn shop to see what they have on hand. This way, I can save some money in the process. http://www.GemCoCoins.com
I am not a person who enjoys shopping because I find it draining. However, there is one exception and everyone who knows me knows this: I love pawn shops. My family knows this “secret” so they take advantage of it. We are all big fans of GemCo and we go in almost every weekend. Greg, the proprietor, is worth the trip! He is a fascinating guy. http://www.GemCoCoins.com