Usury Laws And Pawn Shops: What's The Verdict?

Usury laws in the United States vary by state and do not always apply to pawn shops. Pawn shops are regulated by local authorities and obtain licensing from city managers. The interest rates applicable to pawnbroker repurchase agreements are governed by the pawnbroker interest rate statute or the usury statute. Pawn shops are a special type of secured transaction and are regulated by the Pawnbrokers Act.

Do usury laws apply to pawn shops in Connecticut?

In Connecticut, pawn shops are licensed and regulated by the licensing authority of any town or city. These authorities may grant licenses to suitable persons to be pawnbrokers.

In 2014, the Connecticut Supreme Court ruled that state law limits how much interest pawn shops can charge consumers who agree to buy back items they sold to the shops in exchange for loans. The court ruled that the law caps interest on "repurchase agreements" at 12% per year. This came about as a result of a 2008 lawsuit by Westport resident Bess Gilmore, who died in 2009, against Pawn King in Stratford. Gilmore's lawsuit stated that the shop charged her 20% interest a month in her repurchase deal.

The court's decision was based on the pawnbroker interest rate statute, General Statutes § 21-44, and the usury statute, General Statutes § 37-4. The court concluded that the interest rates applicable to such repurchase agreements are governed by § 37-4.

Therefore, usury laws do apply to pawn shops in Connecticut, with the interest rates applicable to repurchase agreements being governed by the usury statute.

Do usury laws apply to pawn shops in New Mexico?

Pawn shops in New Mexico are governed by a specific set of regulations, including the New Mexico Pawn Statutes and the Pawnbrokers Act. These laws outline the requirements and restrictions that pawnbrokers must adhere to when conducting business.

In terms of usury laws, which pertain to the charging of excessive interest rates, New Mexico has statutes in place that address interest and usury in Chapter 56 - Commercial Instruments and Transactions, Article 8. However, the provided sources do not explicitly mention the applicability of usury laws to pawn shops in New Mexico.

Generally, usury laws set maximum interest rates that can be charged on loans, and they vary by state. These laws are designed to protect borrowers from excessively high interest rates that could lead to significant financial hardship. While pawn shops offer loans in exchange for collateral, their transactions may be subject to different regulations than traditional loans.

Pawn shops in New Mexico are required to obtain permits from the local government and follow specific guidelines for pawn transactions. These transactions are considered a type of secured transaction, where a person (the pawn debtor) transfers an item of personal property to the pawnbroker as collateral for a loan. The pawnbroker may charge fees and interest, but these charges are regulated by the state. For example, in New Mexico, pawnbrokers can charge $7.50 or 10% of the loan amount for the first thirty days, and up to 4% per month on the unpaid principal balance thereafter.

While usury laws typically focus on interest rates, it is important to note that pawn shops in New Mexico have additional regulations that govern their practices. These regulations include requirements for pawn tickets, record-keeping, prohibited practices, and penalties for violations. Therefore, while usury laws may not be specifically mentioned in the context of pawn shops in New Mexico, there are still comprehensive laws in place that govern their operations and protect consumers.

Do usury laws apply to pawn shops in Utah?

Usury laws place limits on the amount of interest that can be charged, and these laws vary from state to state in the US. Pawn shops are money lenders, and as such, they are subject to these laws.

In Utah, pawn shops are licensed and regulated by local municipalities. The Pawnshop and Secondhand Transaction Merchandise Transaction Information Act is available for download as a PDF on the official website of the Utah State Legislature. This act outlines the regulations that pawn shops in Utah must follow.

Every pawnbroker in Utah is required to keep a record of each article of property that a person pawns or sells to the business. This information must be submitted to a statewide repository that is accessible to law enforcement. The information that must be recorded includes:

• The date and time of the transaction
• The pawn transaction ticket number
• The date by which the article must be redeemed
• Information regarding the person who pawns or sells the article, including name, address, date of birth, driver's license number, signature, and fingerprint
• The amount loaned or paid for the article
• An accurate description of the article of property, including identifying marks, metallic composition, weight, and any other unique features

Pawn shops in Utah are also subject to other regulations, such as restrictions on transactions with certain persons and requirements for training and compliance. It is important for pawn shop owners and operators to be familiar with the specific laws and regulations that apply to their business in Utah.

Do usury laws apply to pawn shops in Colorado?

Pawn shops in Colorado are regulated by local authorities and obtain licensing from city managers. The state's pawnbroking laws are laid out in the Colorado Revised Statutes, which include requirements for pawnbrokers to record detailed information about the items they are offered and the people offering them.

Colorado's pawnbroking laws require anyone pawning an item to state that they are the lawful owner of the property being pawned. This is to reduce the market for stolen goods. If an item is stolen, the law seeks to identify the thief and return the items to the owner. If someone pawns an item that belongs to another person, they can be charged with a class 6 felony called false information to a pawnbroker.

Colorado law also sets out the requirements for a "contract for purchase", commonly known as a "pawn" transaction. This is a contract between a pawnbroker and a customer in which money is paid to the customer by the pawnbroker when the customer delivers tangible personal property, on the condition that the customer has the option to cancel the contract within a fixed period of time, which must be at least 30 days.

While I could not find a direct reference to usury laws, it appears that pawn shops in Colorado are subject to a variety of regulations and licensing requirements, and must follow specific procedures to prevent fraud and the sale of stolen goods.

Do usury laws apply to pawn shops in England?

In England, usury laws are state laws that specify the maximum legal interest rate at which loans can be made. Usury laws in American states vary and don't always apply to pawn shops.

In the case of GILMORE v. PAWN KING INC (2014), the Supreme Court of Connecticut ruled that the interest rates applicable to pawnbroker repurchase agreements are governed by the usury statute, General Statutes § 37-4, and not the pawnbroker interest rate statute, General Statutes § 21-44. This means that pawn shops in England are subject to the same usury laws as other lenders and cannot charge interest rates higher than the maximum rate allowed by law.

The court's decision in GILMORE v. PAWN KING INC was based on the interpretation of the statutory language in § 21-44 and § 37-4, as well as the genealogy and legislative history of these statutes. The court concluded that § 21-44 governs rates of interest rather than the rates pawnbrokers may charge in connection with repurchase agreements. On the other hand, § 37-4 was found to include direct or indirect interest within its scope, encompassing repurchase agreements as well as traditional loans.

In conclusion, pawn shops in England are subject to usury laws and cannot charge interest rates higher than the maximum rate allowed by the applicable usury statute.

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