SPRINGFIELD – Under a new law led by State Senator Elgie R. Sims, Jr., the pawnbroker industry will now have enhanced oversight to ensure it is being fair, transparent and equitable.

“Working with consumer advocates and other interested stakeholders, we passed a comprehensive plan to ensure transparency and ethical practices within the pawnbroker industry,” said Sims (D-Chicago). “The Predatory Loan Prevention Act stopped many forms of predatory lending in Illinois, and we are working to continue down that path.”

Sims’ law creates the Pawnbrokers Regulation Act of 2023, regulating how a pawnbroker can operate and conduct its operations to ensure they are being fair, transparent, and equitable. It gives the Illinois Department of Financial and Professional Regulation authority to oversee and regulate the industry. Further, it establishes a complaint and penalty system, which could result in the termination or suspension of a pawnbroker’s license.

As part of the Black Caucus’ Four Pillar Agenda in 2021, Sims was instrumental in passing the Predatory Loan Prevention Act. The PLPA was aimed at reining in the high-interest, short-term loan industry. The bill passed today by the Illinois Senate creates a robust, consumer-focused regulatory process aimed at building on the work started with the passage of the PLPA.

Sims worked alongside IDFPR, various consumer advocates, and industry representatives to put forth House Bill 779 to ensure the pawnbroker industry is safe and well-regulated.

“We have taken a positive step to protect people who are struggling and need to use the services of a pawnbroker,” said Sims. “We must stop predatory practices in any lending industry by giving consumers the peace of mind that they will be dealt fairly and equitably.”

House Bill 779 was signed into law Friday.