HB 2240 Summary

• Reduces minimum pawn transaction length from 90 days to 30 days with a 30-day grace period, allowing renewal by paying service charges for a total of 60 days.

• Adds 24-hour cancellation period allowing customers to cancel pawn transactions without fees or charges within the first 24 hours.

• Changes pawnbroker interest rate structure from 13% monthly for first two months and 11% thereafter to a maximum of 2% per 30-day period, with total charges not exceeding 20% of amount financed per 30-day period.

• Increases felony conviction lookback period for pawnbroker licensing from 5 years to 10 years for crimes involving stolen property, fraud, forgery, theft, or extortion.

• Prohibits reporting pawn transactions to consumer reporting agencies.