Proposed bill could put more people out of work

TERRE HAUTE, Ind. (WTHI) - In the midst of a credit crisis, Ill. Senator Dick Durbin is trying cap interest rates on small lines of credit.

His bill is meant to regulate businesses like credit card companies, but it would also apply to pawn shops, leaving few options for folks in dire situations.

Millions of people bring items into a pawn shop and then walk out with a short term loan.

In a tough economy, they use this money for everything from paying bills to dealing with unexpected job loss.

One pawn shop owner said the rate cap would force many to close.

"It would change the business drastically," said Terre Haute pawn shop owner, Don Chasteen. "I would probably have to lay some people off. It would definitely hurt some of our customers."

At a time when banks are reluctant to loan money, pawn shops are the only place many can turn.

"Brings me a little extra money," said customer William Matherly. "Though I have to pay the interest to get stuff back out, it still helps a little bit."

Click here to learn more about the bill.