An overview of high-interest pet loans:
- From: A number of countries have taken action against online pet stores and stores that offer high-interest loans and expensive rental arrangements to their customers.
- Why: States argue that retail pet stores target low- or low-credit individuals with high-interest loans that can double or triple the price of a pet.
- where: Twelve states have taken steps to limit the practice of offering high-interest loans through online pet stores.
A number of countries have taken action against the high-interest loans and exorbitant leasing arrangements that online and convenience pet stores impose on their customers.
A high-interest loan or rental arrangement for a consumer who purchases a pet from an online pet store or from a real pet store can end up costing two to three times the original cost of the animal, Washington Post Reports.
Illinois and California are two states that have recently taken steps to counter the practice, with the former outlawing high-interest loans earlier this year.
Meanwhile, California Governor Gavin Newsom signed a bill earlier this week that largely bans online pet stores from entering into a financing agreement when selling cats, dogs or rabbits, the Washington Post reported.
Ten other states are said to already ban pet store rental schemes that require a refund if the animal is not paid.
Providing pet loans to consumers is not a new practice; However, offering high-interest loans to individuals who have no or poor credit is a new development, the Washington Post reports.
Five states ban dogs from retail pet stores
Five states have gone so far as to ban the sale of dogs, as well as cats and rabbits, in some cases, entirely from retail pet stores, often arguing with customers buying a costly pet with health problems.
Complaints about expensive loans and rental options, meanwhile, have also increased in the past several years, according to the Animal Legal Defense Trusts, the National Consumer Law Center and the Humane Society, the Washington Post reports.
Congress reportedly took steps last year aimed at ending the practice of providing high-interest pet loans, while bills introduced by Congress in 2019 and 2021 — which are currently stalled — demanded a 36% cap on the interest rate for all lenders.
In related pet news, famous pet food and product companies have Advertise a recall or face class action This year, including Aldi, Blue Buffalo, and Bayer, among others.
Did you buy a pet with a high interest loan or an expensive rental arrangement? Let us know in the comments!
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Countries take action against high-interest pet loans
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