![Bills target pawnbrokers for tighter rate limits Bills target pawnbrokers for tighter rate limits](https://southwestregionalpublishing.com/wp-content/uploads/2023/01/img-Collins-pawn-0104-NVr0IL-1024x680.jpeg)
Bills target pawnbrokers for tighter rate limits
By PETER HANCOCK
Capitol News Illinois
phancock@capitolnewsillinois.com
SPRINGFIELD – Members of the Illinois Legislative Black Caucus are pushing legislation to put pawnbrokers under the same interest rate caps as payday lenders and other small-dollar, short-term lenders, but the pawn shop industry says the proposed caps would effectively put them out of business.
On the first day of a brief “lame duck” session Wednesday, state Sen. Jacqueline Collins and Rep. Sonya Harper, both Chicago Democrats, joined other advocates in accusing the pawn industry of exploiting a “loophole” in a 2021 law known as the Predatory Lending Prevention Act that was aimed at reining in the high-interest, short-term loan industry.
“The PLPA put a stop to many forms of predatory lending in Illinois, but pawnshops convinced a judge to give them a loophole to allow them to continue issuing loans with abusive and excessive three-figure interest rates,” Collins said during a Statehouse news conference.
The PLPA passed during the General Assembly’s last lame duck session in 2021, as part of the Legislative Black Caucus’ agenda aimed addressing what its members described as “systemic racism.” The law caps consumer lenders to charging no more than 36 percent interest per year.
But the law did not specifically mention pawnbrokers, who are allowed to charge interest rates and fees that can amount to effective rates as high as 240 percent per year or more when factoring in associated fees, according to the Woodstock Institute, a consumer advocacy group.
Two bills that have been introduced in the lame duck session – Senate Bill 4241 and House Bill 5840 – would close that gap by including pawn brokers within the PLPA.
“Predatory loans have drained billions from Black, brown and lower-income communities in our state,” Harper said. “The PLPA has stopped this cycle of disinvestment and enabled our community to retain wealth and to invest in jobs instead of padding the pockets of predatory lenders.”
Speaking separately to reporters, representatives of the pawn industry argued that they need to be treated differently from other kinds of lenders because they operate under a different business model.
“We’re already under a 36 percent rate cap. That’s how much interest we can charge, is 36 percent maximum,” said Kelly Swisher, president of the Illinois Pawnbrokers Association. “What we’re allowed by the Pawnbroker Regulation Act is to charge additional fees to help cover the mandated requirements for the pawn industry.”
When a person comes in to pawn something – a watch, a musical instrument or a stereo, for example – Kelly said the pawn shop is required to store those items on the premises, secure them and insure them for twice the amount of the pawn loan.
“And we have police reporting requirements, which, believe it or not, cost money,” he added. “A pawn shop must report to the local police and municipality by noon the following day of all the transactions that we do.”
Pawn shops also must conduct certain customer checks with the Department of Homeland Security and the U.S. Treasury’s Office of Foreign Assets Control, he said.
Putting pawnbrokers under a strict 36 percent cap would effectively limit them to charging just $3 per month on a $100 pawn, which Swisher said would not be enough to cover those additional mandatory costs.
As of Wednesday, it was unclear whether there would be enough time to consider the bills during the brief lame duck session, which cannot go beyond Jan. 11, when the newly-elected 103rd General Assembly is sworn into office. But Collins said she believes they will have the support of the Democratic legislative leadership.
“We expect for the speaker and for the president of the Senate to honor the position of the Illinois Black Caucus,” she said.
Capitol News Illinois is a nonprofit, nonpartisan news service covering state government. It is distributed to more than 400 newspapers statewide, as well as hundreds of radio and TV stations. It is funded primarily by the Illinois Press Foundation and the Robert R. McCormick Foundation.
Local News
![BR14 Brother Rice sophomore Tre Dowdell handles the ball against Leo on Friday. Photo by Jeff Vorva](https://southwestregionalpublishing.com/wp-content/uploads/2022/02/BR14-1024x733.jpg)
Brother Rice’s 11-game win streak ends with loss to Leo
Spread the loveBy Jeff Vorva Staff writer In seemingly a blink of an eye, Brother Rice picked up as many losses as it had all season. The Crusaders headed into last weekend’s action with a 21-2 record and was 10-0 in the Chicago Catholic League Blue. But Friday night, they suffered a 56-50 setback to…
![REAVIS Reavis bowlers claimed a regional title on Saturday. Photo by Reavis High School](https://southwestregionalpublishing.com/wp-content/uploads/2022/02/REAVIS-e1644205878770-1024x666.jpeg)
Area Sports Roundup: Six area girls bowling teams headed to sectionals
Spread the loveBy Jeff Vorva Staff writer Six area girls bowling teams are headed to sectionals. Reavis and Stagg won IHSA regional titles last Saturday, and four other teams have advanced to this weekend’s action. Reavis won its own regional at Palos Lanes in Palos Hills with a 5,378 in six games, well ahead of…
![MARIST SPORTS Marist's cheerleaders finished second in the state in the Large Team division on Saturday. Photo by Jeff Vorva](https://southwestregionalpublishing.com/wp-content/uploads/2022/02/MARIST-SPORTS-1024x581.jpg)
Marist cheerleaders takes 2nd in state
Spread the loveBy Jeff Vorva Staff writer After Marist’s cheerleaders watched a video of their state finals performance on Feb. 5, there were some long faces and tears as the girls filed out of the video room and into the cooling-off room. After a long meeting, there were more long faces. “I’ve had better days,”…
![6 Oak Lawn-Hometown Middle School, 5345 W. 99th St., Oak Lawn, hosted its annual Feed6 Meal Packaging event last month where students gathered together, while socially distanced, with their families, friends, teachers, and school staff members for a two-hour event, packaging fortified meals to be delivered to local food pantries. (Supplied photos)](https://southwestregionalpublishing.com/wp-content/uploads/2021/12/6-768x1024.jpg)
Oak Lawn-Hometown Middle School packs meals for needy during holidays
Spread the loveBy Kelly White Wishing everyone to have the best holiday season, Oak Lawn-Hometown Middle School students packed meals for those in need before they went on Christmas break. The school, 5345 W. 99th St., Oak Lawn, hosted its annual Feed6 Meal Packaging event on December 4, where students gathered together, while socially distanced, with…
![12 McCord Gallery & Cultural Center, 9602 W. Creek Road, Palos Park, featured the art of Stagg High School's most creative artists until January 28. (Photos by Kelly White)](https://southwestregionalpublishing.com/wp-content/uploads/2022/01/12-1024x768.jpg)
McCord shows off Stagg student artworks
Spread the loveBy Kelly White Stagg High School art students proudly had their work showcased at a local gallery. McCord Gallery & Cultural Center, 9602 W. Creek Road, Palos Park, featured the art of Stagg’s most creative until January 28. “Having my work as part of an art show in an art gallery like McCord is significant to…
![regional train hits bus2 regional train hits bus2](https://southwestregionalpublishing.com/wp-content/uploads/2022/02/regional-train-hits-bus2-1024x768.jpg)
No injuries when Metra train hits school bus in Orland Park
Spread the loveBy Bob Bong No children were injured Friday afternoon when their school bus stalled on railroad tracks in Orland Park and the bus was hit by a Metra commuter train. The Orland Fire Protection District responded to an emergency call Friday when a school bus from American School Bus Co. carrying students from…
![GSWNH_DilanUgalde_020422 Ugalde](https://southwestregionalpublishing.com/wp-content/uploads/2022/02/GSWNH_DilanUgalde_020422.jpg)
Charge West Lawn man in 47th St. slaying
Spread the loveBy Tim Hadac An 18-year West Lawn man has been charged with murder in connection with the June 11 slaying of a 20-year-old woman in the 4700 block of South Rockwell. Dilan E. Ugalde, of the 3600 block of West 62nd Place, was apprehended by members of the Chicago Police Department and the Great Lakes Regional…
![GSWNH_TravellBarnes_020422 Barnes](https://southwestregionalpublishing.com/wp-content/uploads/2022/02/GSWNH_TravellBarnes_020422.jpg)
Charge 2 in Ford City carjacking
Spread the loveBy Tim Hadac A 19-year-old man and a 15-year-old boy have been charged with aggravated vehicular hijacking in connection with a crime that occurred in a Ford City parking lot at about 8:45 a.m. Thursday, Jan. 27. Travell Barnes, 19, of the 6800 block of South Hermitage, and the boy allegedly took a…
![CPD Chicago Police Department](https://southwestregionalpublishing.com/wp-content/uploads/2021/07/Screen-Shot-2013-04-02-at-3.28.02-PM.png)
Police reports
Spread the loveMan shot to death in Chicago Lawn A 23-year-old man was shot in the back of the head and killed in a crime that occurred in the 6400 block of South St. Louis at about 1 a.m. Saturday, Jan. 30. Officers responding to a “person down” call discovered the victim lying on the…
Neighbors
![CRRNH_NiegoStory_062624 Thanks to Niego Real Estate, block after block in Clearing and Garfield Ridge are decked out each year in red, white and blue. Residents are asked to volunteer to pick up flags and decorate their whole block—or even additional blocks. --Supplied photo](https://southwestregionalpublishing.com/wp-content/uploads/2024/06/CRRNH_NiegoStory_062624-768x1024.jpg)
Niego Real Estate salutes America again
Spread the love. Popular flag program underway . By Tim Hadac Clearing and Garfield Ridge residents who want to decorate their blocks in red, white and blue this Independence Day are encouraged to contact Niego Real Estate and reserve a supply of U.S. flags at no charge. The popular program to promote patriotism and community…
![dvn 6-24-24 Alan_Morales Alan Morales](https://southwestregionalpublishing.com/wp-content/uploads/2024/06/dvn-6-24-24-Alan_Morales.jpg)
Lyons Mental Health Commission pulls LeaderShop funding
Spread the loveExecutive director accused of harassment From staff reports The local nonprofit service community was jolted when nearly $300,000 in mental health funds was withdrawn by a Lyons Township agency from the Western Springs LeaderShop, a social service agency that has provided youth programs for nearly 40 years. The Lyons Township Mental Health Commission…
![SRP-IMAGE-Logo SRP-IMAGE-Logo](https://southwestregionalpublishing.com/wp-content/uploads/2021/05/SRP-IMAGE-Logo-1024x560.png)
Mount Carmel, Marist and Oak Lawn among 84 teams at Riverside-Brookfield shootout
Spread the loveBy Xavier Sanchez Correspondent High school boys basketball does not stop in March and pick back up in late autumn. For many players, playing hoops is a year-round commitment. AAU ball is a big reason for, that there are summer camps, shootouts or other events at most schools during the summer. The…
![PeggyZabicki Peggy Zabicki](https://southwestregionalpublishing.com/wp-content/uploads/2023/10/PeggyZabicki-1024x768.jpg)
Dog lovers to celebrate ‘Fur of July’
Spread the love. By Peggy Zabicki Your correspondent in West Lawn 3633 W. 60th Place • (773) 504-9327 . I’m starting out with some fun news. The West Lawn Dog Park Advisory Council will be hosting a Fur of July Pet Parade on Saturday, June 29 from 10:30 a.m. to 12:30 p.m. at West Lawn…
![MaryStanek Mary Stanek](https://southwestregionalpublishing.com/wp-content/uploads/2023/10/MaryStanek-768x1024.jpg)
Fourth of July not happy for everyone
Spread the love. By Mary Stanek Your correspondent in Archer Heights and West Elsdon 3808 W. 57th Place • (773) 517-7796 . Happy Fourth of July. Cannot believe I am already saying that, time sure goes. Hope it is safe and quiet for everyone and especially all of our house pets. For us its shutting…
![kathyheadley2021 Kathy Headley](https://southwestregionalpublishing.com/wp-content/uploads/2023/10/kathyheadley2021-869x1024.jpg)
St. Rita’s transformation is worth a look
Spread the love. Kathy Headley Your correspondent in Chicago Lawn and Marquette Manor 6610 S. Francisco • (773) 776-7778 . St. Rita of Cascia Church, 63rd and Fairfield, continues to undergo its transformation from the sunflowery/harvest golds and browns of the 1960s and 1970s to the calming pastels of the 2000s. Since the basilica-style church…
![NAEHER Alyssa Naeher clears a ball at North Carolina on June 23 in a 3-1 Red Stars loss. IMAGN photo](https://southwestregionalpublishing.com/wp-content/uploads/2024/06/NAEHER-1024x712.jpg)
Loss to Courage brings Red Stars’ winless streak to five games
Spread the loveBy Jeff Vorva Correspondent The Chicago Red Stars historic start to the season is all but forgotten. In the last five matches, the Red Stars have failed to win, with the latest setback being a 3-1 loss on the road to North Carolina on June 23 in an NWSL battle. The Red Stars…
![SRP-IMAGE-Logo SRP-IMAGE-Logo](https://southwestregionalpublishing.com/wp-content/uploads/2021/05/SRP-IMAGE-Logo-1024x560.png)
Summer League Basketball | Illinois powers compete at Riverside-Brookfield Shootout
Spread the loveBy Xavier Sanchez Correspondent School’s out for the summer, but high school athletes across Illinois are remaining active during the summer sports season. This includes basketball players, who can be found at camps, open gyms, camps and even weekend tournaments. Among the more high profile hoops action in the area was the Riverside-Brookfield…
![Dana RETTKE Dana Rettke, a graduate of Riverside-Brookfield High School, will play on the U.S. women's volleyball team at the upcoming Summer Olympic Games in Paris.](https://southwestregionalpublishing.com/wp-content/uploads/2024/06/RETTKE.jpg)
Dana Rettke and Ryan Murphy heading to Paris Summer Games
Spread the loveBy Jeff Vorva Correspondent Area fans of the Summer Olympics will have extra reasons to cheer athletes from the United States in the upcoming Paris Games. Dana Rettke of Riverside is a member of the U.S. women’s volleyball team and Palos Heights native Ryan Murphy will represent the country in swimming. Rettke, a…