As I continue my transition from a bank executive to a non-profit leader, there are moments that make me pause, scratch my head, and question whether the world is wired correctly. One such moment occurred in early January when the Illinois Pawn Association (IPA ... and not the beer) successfully used horribly flawed research to sow enough doubt among Illinois legislators to effectively block legislation that would close a loophole allowing pawn shops to disregard the state interest rate cap of 36% on loans.
Instead, pawnbrokers can charge interest of as high as 243%.
