The September 8th ruling caps a “repurchase agreement” interests and service charges at 12 percent a year.
The ruling can as the result of a lawsuit filed against Pawn King, a Connecticut based buy/sell shop. The lawyers for Pawn King attempted to argue that a “repurchase agreement” isn’t a pawn or loan and shouldn’t fall under the interest limits. The judges saw differently.
Connecticut Supreme Court Rules State Law Limits Pawnshops' Interest Rates
Connecticut courts limit pawnshop interest to 12 percent.