Chicago Woman Speaks Out After Pawn Shop Loan Cost $8k In Fees

There is a state loophole that allows pawnbrokers to charge loan interest rates of up to 243 percent! A bill that would set a 36 percent ceiling on this interest rate was unveiled by state lawmakers on Wednesday.

As the new measure was revealed, a woman from Chicago shared her experience. She obtained two loans totaling $800 to aid with moving costs, but the fees for the loans cost her $8,000 in total.

She also lost the stuff she had pawned, including a MacBook Pro and three professional cameras.

“For more than a year, the interest rate on my pawn loans was about 150 percent. I spent $200 a month in interest to roll the loans over, and after a year I had paid over $2,400 in interest, had made no progress in repaying my loans, and the pawn shop still kept my belongings “Jazmine Thompson, a victim of a dishonest pawn loan, said.

Pawnbrokers made $50 million in commissions alone in 2020, according to a lending advocacy group.

Leave A Reply

Your email address will not be published.