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Save My Pawn Shop
April 12, 2009 - by Donny Shaw
Here’s a new campaign against a bill in Congress that would cap interest rates on all loans at 36 percent — SaveMyPawnShop.com.
The bill they are fighting is called the Protecting Consumers from Unreasonable Credit Rates Act. According to a press release from Sen. Dubrin (D-IL), the bill’s sponsor, it would apply a 36% cap to all open-end and closed-end consumer credit transactions, including mortgages, car loans, credit cards, overdraft loans, car title loans, refund anticipation loans, and payday loans. The high-interest, short-term loans that pawnbrokers give out, backed by undervalued jewelry, camera, instruments and the like, would be covered under the bill.
Here is pawn shop owner John Hoying defending the industry, via WHSV in Virginia:
“You close a pawn shop, people won’t be able to go out and buy their medications, won’t be able to pay their copay for the doctors that they have to pay for their children who are sick,” says Hoying. “I’ve had people pawn items so that they could get diapers and baby formula.”
Obviously, the pawn shops face a big challenge in mounting a defense of their business model as a reasonable solution to poverty and lapses in healthcare coverage. But before you discredit their ability to defend high-interest loans to low-income individuals, read my post below on how the payday loan industry, which is generally regarded with even more disdain than pawn shops, has gotten members of Congress to back the idea of a 390% APR. That’s not a typo — Rep. Luis Gutiérrez [D, IL-4] is actually pushing a bill that would levy a three hundred and ninety percent APR on typical payday loan borrowers.
(h/t Senatus)
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Comments
People need to stop buying crap they can’t afford, then reselling it to pawn shops at rip off rates. The problem isn’t pawn shops, it’s stupidity. No amount of legislation is going to prevent stupidity, and it’s a waste of time and money to continue to fight “for the little man”, since the “little man” is such a raving idiot.
so if your not rich your an idiot? society isnt the entire problem its also people that think like you
This comment above is from a no brain person.
and has never went to a pawn shop take a look before you think you know it all.
200 loan is 20.00 in the first 90 days pal
and you are the idiot takes a big man like you to sit behind a screen and judge people
pack up your man and move to china russia or cuba
THIS IS THE LAND OF THE FREE
AND IF YOUR SO SMART DID YOU KNOW HE GOT A 55,000.00 KICK BACK FROM CITIBANK TO WRITE THIS BILL??
LOOK IT UP YOU SIT BEHIND A COMPUTER ALL DAY
They aren’t saints, but when we choose to come after all pawn shop owners and pay-day loan providers, we have to remember the people who frequent these establishments would seek loans elsewhere if they could.
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With the economy the way it is today,stop and think about it for a minute, look at all the break-ins and robberies that has happened not counting the ones that are being planned right now. When people have bad credit like lots of americans do, they have no other place to go to borrow some money than a pawn shop. So if it get passed about pawn shops only charging 36% interest a year all of the pawn shops will close. You think break-ins and robberies are bad now, let people not have any money to buy food….ENUFF SAID!!!!!!!!!!!!!!
It’s estimated that up to 40 million people use pawn shops in one way or another. Are the banks prepared to make $50-$100-$200 loans that millions of people need from time to time to meet small obligations ?
It would be impossiable for a pawn shop to keep it’s doors open on 3% loans !
has anyone thought about the fact that pawn shops are the only way someone who just lost a job due to all of these cut backs are getting money to feed the family also has anyone also thought about the fact that money is also being used to pay for gas to find to a job.
I have been in the pawn business my entire life. I see this stuff every single day. I am so disgusted at ignorant people who stereotype our business. Stop sitting in front of the tv and watching the pawn shop being portrayed as predator’s in silly movie’s. This business is no different then any other. You have good client’s and bad client’s. It is so easy to notice just the negativity. When your children are hungry and the job you have been at for 15 year’s lays you off, come see us.