If you buy a dog or cat, you shouldn't be lured into signing a purchase agreement that uses the animal as collateral. That's the rationale for a state law taking effect July 28, outlawing the practice in Washington. Lawmakers say people who entered into these agreements often were unaware their pets could be repossessed if they fell behind on payments.
Buying a specific breed of dog or cat can be expensive, sometimes costing into the thousands. So some breeders and companies offer loans that may be paid off over time. But state Rep. Derek Stanford (D-Bothell) says he was surprised when he found out that hidden in some of these contracts was the possibility that non-payment could result in repossession of the animal.
"And that's, I think, not an outcome that is reasonable for a pet," Stanford said. "It's not a chair or a TV."
In addition, Stanford says, some of the the loan contracts people were signing when purchasing pets were actually leases, which don't require the same level of disclosure as loans. For example, he said, unlike a loan they don't have to spell out what the annual percentage rate or APR is.
"And the effective APR of some of these contracts was over 100 percent, which I thought was pretty outlandish for someone purchasing a pet," he said.
