Pawnbrokers.

Existing law prohibits a pawnbroker from charging or receiving compensation at a rate exceeding 2.5% per month on that portion of the unpaid principal balance of any loan up to, including, but not in excess of $225. For other loan amounts, existing law prohibits a pawnbroker from charging or receiving compensation at a rate exceeding specified amounts based upon the unpaid principal balance of the loan. A knowing violation of the laws regulating pawnbrokers is a crime. This bill would revise these limits on pawnbroker compensation and would instead prohibit a pawnbroker from charging or receiving compensation at a rate exceeding 2.5% per month on the unpaid principal balance of any loan. Because a knowing violation of this bill's provisions would be a crime, the bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.