Submitted Photo Tracy Pennycuick, R-Montgomery, speaks in the state House of Representatives in late January.

A Montgomery County Republican wants to put an end to the practice of taking out a loan to pay for a dog or a cat.

Rep. Tracy Pennycuick, R-Montgomery, sponsored House Bill 2311 to amend Title 12 of the state Commerce and Trade laws to prohibit the financing of a dog or cat. She said one pet owner in her district ran into trouble with a financed pet purchase.

“Pet stores and online sellers often push financing on those who cannot afford a puppy outright (many sell for thousands of dollars) which has led to financial hardship for borrowers who have unknowingly ended up with extremely high interest rates and hidden fees,” Pennycuick wrote in her legislative memorandum. “One Monroeville pet store customer told the Better Business Bureau that she unknowingly signed up for financing with a 151% interest rate and will end up paying $6,055.40 for a $1,888.31 puppy.”

Illinois passed the Holmes Law (HB 572) into law in September, with the law taking effect Jan. 1. Humane Society officials said the legislation is a blow to puppy mills that often sell animals to those who may not be able to afford them outright and offer loans with high interest rates and hidden fees. Customers of one Illinois pet outlet complained to state legislators that interest rates were as high as 188%.

“This doesn’t just happen in payday loan stores, they’ve been getting away with predatory lending interest rates anywhere from 30 to 150% and higher,” said Illinois state Sen. Linda Holmes, sponsor of the legislation. “Most pet stores have issues with their animals coming from unprincipled breeders and puppy mills – some in poor condition – so these consumers can end up thousands in debt and grieving as well.”

Pennycuick said the problem isn’t just one store in Monroeville. She noted at least 20 pet stores in the state and several online brokers that ship puppies to Pennsylvania customers with financing through third-party lenders. Pennycuick’s legislation does not impact puppy-selling pet stores and online puppy brokers from selling pets, just offering loans to pay for them. Those purchasing expensive dogs or cats would be able to pay for them with credit cards.

“For instance, all 20 pet stores that offer financing utilize Easy Pay Finance, a company with nearly 400 Better Business Bureau complaints and a warning from ScamFinance.com that the company fails to disclosure noticeable Terms and Conditions, has “horrific customer service” and “outrageously high loan rates” (between 129 to 200% on average),” Pennycuick wrote.