Thinking about hocking Grandma's wedding ring to get a fast loan? The annual percentage rate you'll pay may work out to anywhere from 109 percent to 285 percent, according to state data.
Here's what you're likely to pay in interest and other charges on a $1,000 loan, says Cynthia Mouradain of Pacific Gold Inc., a downtown pawnbroker, assuming the maximum charges permitted under state law:
• 3 percent in interest for a 60-day loan period Ñ with an extra 30-day grace period. Total: $59.18.
• A 2 percent storage fee. Total: $20.
• A 10 percent setup fee that caps at $100. Total: $100.
• An additional $3 storage charge and a $9 background check if the hocked item is a gun. Total: $12, plus $3 every time the loan is renewed.
The grand total on a $1,000 loan: $179.18, and for handguns $191.18. If these charges are multiplied over a one-year period, the total clearly will be much higher.
Many pawnbrokers charge less than the maximum allowed, says Earl Oller, owner of Silver Lining Jewelry & Loan, 2122 N.E. Sandy Blvd., and former longtime president of the Oregon Pawnbrokers Association. The annual percentage rate on a $100 loan at Silver Lining is 96 percent, Oller says; on $400, it's 100 percent.