Posted: 8/25/2009 11:58:02 AM EDT
| Do you know anything about "save my pawnshop dot com" ?? One of my customers showed it to me . Is it legit ?? |
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anybody want to give a cliff notes of the bill? Example: for a $100 loan generally interest is 25%, so payback is $125. This $25 includes interest charges, employee's time, storage space and paperwork, tags, labels etc. New Bill would make the maximum charge $2 on $100. Therefore, out of bidness. 
Pawnshop APR is 300%. 25% for the first 3 months and then 15% for every month after that. The bill would cap it at 36% APR. Again, out of Bidness.
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anybody want to give a cliff notes of the bill? Example: for a $100 loan generally interest is 25%, so payback is $125. This $25 includes interest charges, employee's time, storage space and paperwork, tags, labels etc. New Bill would make the maximum charge $2 on $100. Therefore, out of bidness. 
Man......that can't be right. Put that real stuff on Pawnstars. This is in my prayers now....it'd eliminate the businesses of some of my favorite people. |
| Maybe it's just me, but how many folks actually get their stuff out of hock? I can count on two fingers how many thing's I've pawned in my life and on both occasions I took them to a pawn shop to SELL them, not borrow money on them. By no means am I an expert, but I would think most of the folks bring stuff to the shop kiss it good bye when it crosses the counter. I could be wrong through. |
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My girlfriends folks run two pawn shops in Callahan/Folkston. People very often pawn things, pay the interest for months, then never come back, then the pawn shop can sell. This can result in profits of 10x what was lent on the item. This interest is key for pawn shops.
However, they really make most of their money on the jewelry people sell or lose on pawn. They take sacks of the shit to the wholesalers. Regarding this bill, a similar bill put paycheck advance places out of business. Obviously this is another liberal attempt to protect people from themselves and further eliminate personal responsibility. Posted Via AR15.Com Mobile |
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Maybe it's just me, but how many folks actually get their stuff out of hock? I can count on two fingers how many thing's I've pawned in my life and on both occasions I took them to a pawn shop to SELL them, not borrow money on them. By no means am I an expert, but I would think most of the folks bring stuff to the shop kiss it good bye when it crosses the counter. I could be wrong through. In my shop, we have a 60%+ pick-up rate which is about the national average. Other shops, depending on their customer base and business practices, may have a higher or lower rate. Some people may think that 25% per month interest is high, but try to borrow $100 from a finance company and see what they charge in "fees". You're cheaper in the long run to go to a pawn shop for a small loan like that. Talk to your banker about a $500 loan on a 8 year old car - he won't even waste his time on you.... If the .gov steps in and cuts the interest rates, there will be a lot of people with nowhere left to turn for small, short term cash loans when the little shops like mine close up. |
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Maybe it's just me, but how many folks actually get their stuff out of hock? I can count on two fingers how many thing's I've pawned in my life and on both occasions I took them to a pawn shop to SELL them, not borrow money on them. By no means am I an expert, but I would think most of the folks bring stuff to the shop kiss it good bye when it crosses the counter. I could be wrong through. In my shop, we have a 60%+ pick-up rate which is about the national average. Other shops, depending on their customer base and business practices, may have a higher or lower rate. Some people may think that 25% per month interest is high, but try to borrow $100 from a finance company and see what they charge in "fees". You're cheaper in the long run to go to a pawn shop for a small loan like that. Talk to your banker about a $500 loan on a 8 year old car - he won't even waste his time on you.... If the .gov steps in and cuts the interest rates, there will be a lot of people with nowhere left to turn for small, short term cash loans when the little shops like mine close up. Steve, You are 100% correct. There are people that rely on our services and they will be hurt the most if this bill passes. If you put it in perspective like you did our interest rates are fair for a short term loans when compared to other sources available to the typical customer we service. Many of the customers we service probably have a terrible credit history and their choice are limited to say the least. I guess they can always turn to black market sources if we are shut down. When people need money they will find a source no matter the long term ramifications. I guess the govt can declare war on black market loan operations much like the have on drugs. We all know how cost effective and successful that campaign has been. I admire your redemption rate. I don't think mine is anywhere near 60% even though I am VERY careful about items I take for collateral. Two years ago my redemption rate was a little north of 60% and I was making loans on most anything that walked through the door. I think Dublin is in trouble. Many of the large employers like Mohawk carpet, SE Paper ETC are laying off, furloughing or shutting down. TD |
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Maybe it's just me, but how many folks actually get their stuff out of hock? I can count on two fingers how many thing's I've pawned in my life and on both occasions I took them to a pawn shop to SELL them, not borrow money on them. By no means am I an expert, but I would think most of the folks bring stuff to the shop kiss it good bye when it crosses the counter. I could be wrong through. In my shop, we have a 60%+ pick-up rate which is about the national average. Other shops, depending on their customer base and business practices, may have a higher or lower rate. Some people may think that 25% per month interest is high, but try to borrow $100 from a finance company and see what they charge in "fees". You're cheaper in the long run to go to a pawn shop for a small loan like that. Talk to your banker about a $500 loan on a 8 year old car - he won't even waste his time on you.... If the .gov steps in and cuts the interest rates, there will be a lot of people with nowhere left to turn for small, short term cash loans when the little shops like mine close up. Steve, You are 100% correct. There are people that rely on our services and they will be hurt the most if this bill passes. If you put it in perspective like you did our interest rates are fair for a short term loans when compared to other sources available to the typical customer we service. Many of the customers we service probably have a terrible credit history and their choice are limited to say the least. I guess they can always turn to black market sources if we are shut down. When people need money they will find a source no matter the long term ramifications. I guess the govt can declare war on black market loan operations much like the have on drugs. We all know how cost effective and successful that campaign has been. I admire your redemption rate. I don't think mine is anywhere near 60% even though I am VERY careful about items I take for collateral. Two years ago my redemption rate was a little north of 60% and I was making loans on most anything that walked through the door. I think Dublin is in trouble. Many of the large employers like Mohawk carpet, SE Paper ETC are laying off, furloughing or shutting down. TD Most of my customers can't get a checking account let alone a bank loan. We did have a couple that come in wanting to pawn their car title for $100 for a couple weeks to cover a utility bill. They told us that the finance company up the road was going to charge them over $200 to pay out the 6 month $100 loan even if they paid it early and the guy said "BS, I'll go to a pawn shop, it's cheaper". He came to us, got $100 to pay his bill and paid us the $125 two weeks later just like he said he would. He hasn't borrowed any money since then but is a regular customer making purchases... 
We've had to get extremely selective on what we pawn since the Kenyan screwed up the economy - we're just not selling that much except for jewelry and a few used guns... and we piss people off every day, all day long when we don't take their stuff on pawn - some act like we "owe" them something... typical liberal mindset.... |
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On Thomas @ the Library of Congress, I found the following on Senate Bill 500: S.500 Title: A bill to amend the Truth in Lending Act to establish a national usury rate for consumer credit transactions. Sponsor: Sen Durbin, Richard [IL] (introduced 2/26/2009) Cosponsors (3) Related Bills: H.R.1608 Latest Major Action: 2/26/2009 Referred to Senate committee. Status: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. It is still alive, but no activity since going into committee in late February. |