Bill Text: NJ S161 | 2014-2015 | Regular Session | Introduced


Bill Title: Concerns interest rate chargeable by licensed pawnbrokers on certain transactions.

Sponsorship: Slight Partisan Bill (Democrat 2-1)

Status: (Failed) 2014-03-17 - Withdrawn from Consideration [S161 Detail]

Download: New_Jersey-2014-S161-Introduced.html

SENATE, No. 161

STATE OF NEW JERSEY

216th LEGISLATURE

 

PRE-FILED FOR INTRODUCTION IN THE 2014 SESSION

 


 

Sponsored by:

Senator  GERALD CARDINALE

District 39 (Bergen and Passaic)

Senator  NICHOLAS P. SCUTARI

District 22 (Middlesex, Somerset and Union)

 

 

Co-Sponsored by:

Senator Stack

 

 

 

 

SYNOPSIS

     Concerns interest rate chargeable by licensed pawnbrokers on certain transactions.

 

CURRENT VERSION OF TEXT

     Introduced Pending Technical Review by Legislative Counsel

  


An Act concerning pawnbrokers and amending R.S.45:22-22.

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

1.      R.S.45:22-22 is amended to read as follows:

     45:22-22.    Notwithstanding the provisions of N.J.S.2C:21-19 to the contrary, a pawnbroker shall not charge or receive interest on a loan in excess of [3.7%] 4.5% per month or a fraction thereof, except that he may charge [$1.00] $1.50 where the interest herein amounts to less.  In no event shall any other charges be made for any reason whatsoever, except as permitted by the Commissioner of Banking and Insurance.

(cf:  P.L.2001, c.388, s.2)

 

     2.    This act shall take effect on the first day of the fourth month next following the date of enactment.

 

 

STATEMENT

 

     This bill increases the rate of interest that a licensed pawnbroker may charge per month with respect to pledge transactions from the current rate of 3.7% to 4.5% and increases the minimum charge for these transactions from $1.00 to $1.50. These amounts were last increased more than 10 years ago.

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