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House Co-Sponsorship Memoranda
House of Representatives
Session of 2021 - 2022
Regular Session
MEMORANDUM
| Posted: | January 18, 2022 04:09 PM |
|---|---|
| From: | Representative Tracy Pennycuick |
| To: | All House members |
| Subject: | Predatory Financing of Dogs and Cats |
Colleagues, I plan to introduce legislation to prohibit the financing of a dog or cat. Lending companies would be prohibited from entering into a closed-end credit agreement or open-end credit agreement with puppy or kitten buyers. Pet stores and online sellers often push financing on those who cannot afford a puppy outright (many sell for thousands of dollars) which has led to financial hardship for borrowers who have unknowingly ended up with extremely high interest rates and hidden fees. One Monroeville pet store customer told the Better Business Bureau that she unknowingly signed up for financing with a 151% interest rate and will end up paying $6,055.40 for a $1,888.31 puppy. Financing also increases impulse puppy purchases, which can result in weeks-old puppies with families that do not have the time, willingness, or resources to properly care for them. This can lead to health and behavior issues, relinquishment to a shelter, or neglect. Impact: Puppy-selling pet stores and large online puppy brokers are the only entities known to offer financing through third party lenders. They would still be able to sell puppies and kittens under this legislation but would not be able to offer financing for them. Open-end credit agreements, i.e. credit cards, would still be allowed. Responsible breeders who sell directly to the public do not finance puppies, so they will not be impacted. Similar laws: Illinois became the first state to prohibit the financing of a dog or cat 2021. The legislation passed unanimously in both chambers. Several other states have prohibited just the leasing of a dog or cat (rent to own language in financing contracts), but have found that this does not address the larger issue of financing. Problem in Pennsylvania: At least 20 pet stores in the state and several large online brokers that ship puppies to in-state customers offer financing through third party lenders that many would consider predatory. For instance, all 20 pet stores that offer financing utilize Easy Pay Finance, a company with nearly 400 Better Business Bureau complaints and a warning from ScamFinance.com that the company fails to disclosure noticeable Terms and Conditions, has “horrific customer service” and “outrageously high loan rates” (between 129 to 200% on average). Please join me in supporting this important legislation. Thank you |
Introduced as HB2311