Some pet stores and online retailers use high-interest loans and leasing agreements that tout low monthly payments.
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Legislators are worried about your Frenchie, and not just because he hates his new sweater. California Governor Gavin Newsom signed a bill Monday that prevents online pet stores from offering financing for pet sales, a widespread practice that’s trapping pet owners in loans that sometimes end up tripling the cost of their dog, according to the Washington Post.
Some pet stores and online retailers use high-interest loans and leasing agreements that tout low monthly payments and target hopeful pet parents without great credit. One financing company that frequently works with pet stores, EasyPay, says it helps out customers who wouldn’t normally be able to afford the Shih Tzu of their dreams…with a 199% interest rate.
- One elderly couple told the Post that after agreeing to a loan for a $4,595 chihuahua puppy, they realized it would end up costing them almost $20,000 after interest.
Legislators are watching…California isn’t the only state that wants to get rid of the pet price gougers. Eleven other states have banned pet financing, but the current patchwork of regulations makes it impossible to end the practice entirely. At the federal level, a national interest rate cap has been proposed, but it’s currently in congressional limbo.
In the meantime, some states have banned dog- and other pet sales entirely, considering adoption better for both pets and humans.—MM
