Q: I have owned a pawnshop since 2001. I pawn vehicles. There has been a change in money lenders policy
I have owned a pawnshop since 2001. I pawn vehicles. The interest on vehicles has always been 20% monthly.
Recently, the policies of the moneylender permits have changed. Now pawnshops can only charge 20% on the first month's interest. Only 4% interest can be charged on the 2nd month's interest and every month after. The new policy also states that when the total interest paid equals the total of the original loan...interest can no longer be charged and all $ paid by the customer has to go towards the principal to clear off the loan capital.
I am trying to change the terms of my contract because the new policy is having a major impact on my finances...for instance regarding business expenses: rent, employee salaries, business tax, trade license, business loans, business supplies, etc.
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