(a) Beginning January 1, 2011, the maximum rate of interest which a pawnbroker may contract for, and receive, including fees, shall not exceed 5% per month, or fraction of the month, for the first 6 months of a loan, and 3% per month, or fraction of the month, thereafter; provided, that a pawnbroker may contract for, and receive, a minimum charge of $2 per month, or fraction of the month, in lieu of interest.
(b) The borrower may pay all or any part of any loan made pursuant to this part at any time before the date of maturity thereof, but any such payment may first be applied by the licensee to all interest unpaid up to the date of such payment.
(c) Once during each calendar year, a borrower shall have the right to rescind any pawn loan by the end of the same business day of the transaction. A $2 fee may be assessed by the licensee to offset the administrative cost of the rescission.
(d) The Mayor shall investigate from time to time, but no more frequently than once every 3 years, the economic conditions and other factors relating to and affecting the business of making pawnbroker loans under this part and shall ascertain and report to the Council all pertinent facts necessary to determine what maximum rate of interest should be permitted.
(Aug. 6, 1956, 70 Stat. 1040, ch. 970, § 9; Mar. 12, 2011, D.C. Law 18-315,§ 4(c), 57 DCR 12412; Sept. 26, 2012, D.C. Law 19-171, § 302, 59 DCR 6190; Dec. 24, 2013, D.C. Law 20-61, § 7158(c), 60 DCR 12472.)
1981 Ed., § 2-1909.
1973 Ed., § 2-2009.
Effect of Amendments
D.C. Law 18-315 rewrote subsec. (a); and added subsecs. (c) and (d).
D.C. Law 19-171 enacted this subchapter into law.
For temporary (90 day) amendment of section, see § 2(b) of Predatory Pawnbroker Regulation and Community Notification Emergency Act of 2010 (D.C. Act 18-385, April 29, 2010, 57 DCR 3838).
For temporary (90 days) amendment of this section, see § 7158(c) of the Fiscal Year 2014 Budget Support Emergency Act of 2013 (D.C. Act 20-130, July 30, 2013, 60 DCR 11384, 20 DCSTAT 1827).
For temporary (90 days) amendment of this section, see § 7158(c) of the Fiscal Year 2014 Budget Support Congressional Review Emergency Act of 2013 (D.C. Act 20-204, October 17, 2013, 60 DCR 15341, 20 DCSTAT 2311).
Section 2(b) of D.C. Law 18-200 amended subsec. (a) to read as follows:
“(a)(1) The maximum rate of interest which a pawnbroker may contract for, and receive, including fees, shall not exceed 24% per annum; provided, that this subsection shall not apply to any pawnbroker licensed in accordance with this part as of April 1, 2010.
“(2) The maximum rate of interest which a pawnbroker licensed in accordance with this part as of April 1, 2010 may contract for and receive shall be the same as permitted by section 8 of Article 41 of the Police Regulations, effective August 22, 1957 (C.O. 57-1638; 16 DCMR § 910).”.
Section 4(b) of D.C. Law 18-200 provided that the act shall expire after 225 days of its having taken effect.
Section 7151 of D.C. Law 20-61 provided that Subtitle O of Title VII of the act may be cited as the “Tax Clarification Amendment Act of 2013”.
Change in Government
This section originated at a time when local government powers were delegated to a Board of Commissioners of the District of Columbia (see Acts Relating to the Establishment of the District of Columbia and its Various Forms of Governmental Organization in Volume 1). Section 402(72) of Reorganization Plan No. 3 of 1967 (see Reorganization Plans in Volume 1) transferred all of the functions of the Board of Commissioners under this section to the District of Columbia Council, subject to the right of the Commissioner as provided in § 406 of the Plan. The District of Columbia Self-Government and Governmental Reorganization Act, 87 Stat. 818, § 711 ( D.C. Code, § 1-207.11), abolished the District of Columbia Council and the Office of Commissioner of the District of Columbia. These branches of government were replaced by the Council of the District of Columbia and the Office of Mayor of the District of Columbia, respectively. Accordingly, and also pursuant to § 714(a) of such Act ( D.C. Code, § 1-207.14(a)), appropriate changes in terminology were made in this section.