County of Los Angeles Department of Consumer Affairs New Consumer Laws 2009

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PAWNBROKERS – HIGHER FEES ALLOWED

SB 580, Financial Code 21200, 21200.1

This new law increases the fees a pawnbroker may charge.

Under existing law, pawnbrokers can charge only a $1 monthly fee to customers who have a loan for over 90 days with an unpaid principal balance of $120 or less. This new law increases this fee from $1 to $3.

Existing law limits set up fees to $3 or $5, depending on the amount of the loan. This new law increases the set up fee to $5, or 2% of the loan, whichever is greater. The fee caps at $10.

Existing law lets pawnbrokers charge the following rates per month. These rates remain unchanged:

1. Loans up to $225: 2.5% of the unpaid balance
2. Loans from $226 to $900: 2% of the unpaid principal balance
3. Loans from $901 to $1650: 1.5% of the unpaid principal balance
4. Loans greater than $1650: 1% of the unpaid principal balance

For more information:
County of Los Angeles Department of Consumer Affairs
B-96 Kenneth Hahn Hall of Administration
500 W. Temple Street * Los Angeles, CA 90012-2706
Telephone (800) 593-8222 (within the County) * (213) 974-1452
Web site: dca.lacounty.gov