HB5840 Summary

• Amends the Pawnbroker Regulation Act to cap interest rates at levels permitted under the Predatory Loan Prevention Act rather than the previous 3% per month limit.

• Expands the definition of "loan" in the Predatory Loan Prevention Act to explicitly include transactions subject to the Pawnbroker Regulation Act.

• Makes it unlawful for any person or entity to solicit, broker, or advertise loans that violate the Predatory Loan Prevention Act's rate limits.

• Subjects pawnbrokers who violate the Predatory Loan Prevention Act to discipline under the Pawnbroker Regulation Act in addition to other enforcement remedies.

• Effective June 1, 2023, with provisions treating the changes as declaratory of existing law applicable to pending and future actions.