Larry Nuckols

“We’re very concerned… On a national basis, the average (pawn shop) loan is only $60, so when you cap interest at 36 percent, that’s just 3 percent per month, or $1.80.”

Pawn shop owner Larry Nuckols worries that the 36% cap on loans to military personnel in the 2007 Defense Authorization Act approved last month will squeeze some shops out of business…

The cap will affect payday lenders, income tax refund lenders, pawnshops and title lenders. Nuckols company owns 13 stores and military personnel make up about 20 percent of his customer base at one of his locations.

Larry Nuckols said that he would not be able to give loans at the proposed rate:

“You can’t pay an employee to write a loan for that fee.”

Larry Nuckols is president of Pawn Management Inc. and the San Antonio Pawn Brokers Association.

Source: Military Takes Aim at High-Interest Loans by Aïssatou Sidimé (San Antonio Express-News)

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