If enacted, HB 2975 will modify existing laws related to pawnbrokers under ORS 726.390 and ORS 726.395. The bill empowers pawnbrokers to charge a set-up fee, capped at ten percent of the loan amount, alongside other specific fees for handling firearms. This alteration is intended to regulate and clarify the cost structure of pawn loans, which can often include hidden fees that disproportionately affect low-income borrowers. By doing so, it aims to enhance consumer confidence and encourage fair lending practices within the pawnbroker industry.
House Bill 2975 focuses on regulations surrounding pawnbrokers in Oregon, specifically addressing interest rates and fees that may be charged to customers. This legislation aims to adjust the legal framework governing pawnbrokers to ensure fair practices and consumer protections. Notably, the bill prescribes an interest cap of three percent per month on pawnbroker loans, stipulating that any additional fees must be transparent and reasonable. The changes here are designed to provide a safer borrowing environment for customers seeking short-term loans against their pledged items.
While the measure largely focuses on enhancing consumer protection, the inclusion of fees associated with firearms storage may raise discussions regarding gun control and the responsibilities of pawnbrokers in regulating firearm transactions. Opponents might argue that the increased fees for gun storage could create barriers for customers wishing to pawn firearms, potentially placing an undue financial burden on certain demographics. Thus, the bill represents a delicate balance between enabling lenders to mitigate risks associated with pawning firearms while ensuring that such practices remain affordable and accessible.