Pawnbrokers Thrive as US Economy Falters (Virginie Montet)

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 WASHINGTON (AFP) - As other businesses struggle in an economic slowdown, US pawnbrokers are thriving thanks to increasing numbers of Americans forced to separate with their family jewels to make ends meet.

 

{xtypo_quote_left}The other day "a lady called wanting to know if she could pawn her dentures," shop clerk John Benson said.{/xtypo_quote_left}

"We see more people coming in to raise money in these uncertain economic times," said Rick Sussman of Northwestern Loan Company in Baltimore which, founded in 1919, is the oldest pawnbroker in the state of Maryland.

He added: "In better times you might see people from the lower end of the social economic class getting loans, and in bad economic times you tend to see additionally also people who are middle-class trying to raise money."

Power tools, stereos and above all jewelry -- given the high price of gold -- are pawned for between one and three months in exchange for a loan.

The interest rates vary between states: five percent in Washington, DC, but 20 percent in neighboring Maryland.

If clients don't come back to recover their goods, they are sold off.

 

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