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Millie Hill said it was love at first sight as her husband of 50 years held a pint-size Chihuahua puppy at a Puppyland pet store last summer.
Howard Hill, 95 and dealing with vascular
dementia, was worried about how quiet their home in Kent, Wash., might become when their aging dog, Mr. B, passed away. So after hurriedly signing papers at the pet store chain, the Hills walked out with the new $4,595 puppy.
When she sat down to look at the paperwork a few days later, Millie Hill quickly realized her mistake: The bundle of high-interest loans she’d signed would eventually swell to a total cost of more than $19,000.
“I felt betrayed. You don’t expect this from people who sell animals and love animals,” said Millie Hill, 85, whose husband died in November. “This should not be allowed; it should be illegal.”
A growing chorus of state legislatures agree and are taking action to outlaw high-interest loans and leasing arrangements from brick-and-mortar and online pet stores.
The deals can leave pet owners on the hook for double or triple the cost of an animal and can cripple the credit of those who can’t pay up.
Illinois banned the high-interest loans this year and California Gov. Gavin Newsom (D) signed a bill on Monday that generally prohibits online pet stores — regardless of location — from being involved in financing the sale of dogs, cats or rabbits
Another 10 states have banned retail pet stores from offering leasing plans that are similar in cost and structure to car leases, meaning a failure to pay could result in a pet being seized.
“They are preying on people who are making an emotional decision,” said California state Rep. Brian Maienschein (D), who sponsored the bill. “These are not reasonable loans, the terms are predatory, in some cases doubling the cost of the pet. That’s absurd.”
The founder of Puppyland, which has six stores in four states, defended the company’s practice of using finance companies that offer the high-interest loans, arguing that it gives pet owners more flexibility. “
These interest rates are not unique to Puppyland and Puppyland has no control over the interest rates our customers receive when working with 3rd parties for financing,” Kayla Kerr said in a statement, adding that the company has no plans to change its loan policies.
“If we were to suspend this option, it essentially narrows the choice for the customer and we would not want to do that.”
EasyPay Finance, a company that offers high-interest loans through pet stores across the nation, said they allow customers who might otherwise not qualify for a traditional loan to buy the pet of their choice. The company says its loan rates can be as high as 199 percent…….
Howard Hill, 95 and dealing with vascular
dementia, was worried about how quiet their home in Kent, Wash., might become when their aging dog, Mr. B, passed away. So after hurriedly signing papers at the pet store chain, the Hills walked out with the new $4,595 puppy.
When she sat down to look at the paperwork a few days later, Millie Hill quickly realized her mistake: The bundle of high-interest loans she’d signed would eventually swell to a total cost of more than $19,000.
“I felt betrayed. You don’t expect this from people who sell animals and love animals,” said Millie Hill, 85, whose husband died in November. “This should not be allowed; it should be illegal.”
A growing chorus of state legislatures agree and are taking action to outlaw high-interest loans and leasing arrangements from brick-and-mortar and online pet stores.
The deals can leave pet owners on the hook for double or triple the cost of an animal and can cripple the credit of those who can’t pay up.
Illinois banned the high-interest loans this year and California Gov. Gavin Newsom (D) signed a bill on Monday that generally prohibits online pet stores — regardless of location — from being involved in financing the sale of dogs, cats or rabbits
Another 10 states have banned retail pet stores from offering leasing plans that are similar in cost and structure to car leases, meaning a failure to pay could result in a pet being seized.
“They are preying on people who are making an emotional decision,” said California state Rep. Brian Maienschein (D), who sponsored the bill. “These are not reasonable loans, the terms are predatory, in some cases doubling the cost of the pet. That’s absurd.”
The founder of Puppyland, which has six stores in four states, defended the company’s practice of using finance companies that offer the high-interest loans, arguing that it gives pet owners more flexibility. “
These interest rates are not unique to Puppyland and Puppyland has no control over the interest rates our customers receive when working with 3rd parties for financing,” Kayla Kerr said in a statement, adding that the company has no plans to change its loan policies.
“If we were to suspend this option, it essentially narrows the choice for the customer and we would not want to do that.”
EasyPay Finance, a company that offers high-interest loans through pet stores across the nation, said they allow customers who might otherwise not qualify for a traditional loan to buy the pet of their choice. The company says its loan rates can be as high as 199 percent…….
