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Save Your San Diego Pawn Shop

April 26, 2009 by Administrator 

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According to ABC news, opponents of a proposed bill in the U.S. Senate say while it’s aim is to help consumers, what it may in fact do is destroy a business that’s been around for thousands of years.

The bill is simply known as Senate Bill 500, but the measure, which seeks to cap interest rates on short term loans, threatens to put owners of San Diego pawn shops, and pawnbrokers all across the country, out of business. Under the terms of the new bill, short term rates would be capped at 36 percent.

If, for instance, someone took a $100 loan from a pawn shop and repaid it two weeks later at that rate, it will only cost the customer $1.38. That is an amount pawnshop owners say they can’t sustain themselves on. According to one pawn shop owner, Brian Langfitt, “My employee labor cost to process a loan is over three dollars, not to mention all the other costs that are involved with a small business. And we physically can’t stay in business, losing money.”

The Bill’s sponsor, Senator Dick Durbin of Illinois wants the cap to be set where it is currently for members of the military.

Many customers of these pawn shops say if the shops go out of business, they wouldn’t see loans at all. What’s worse for pawn shop owners is they have been one of the few businesses booming during the recession.

Opponents of the proposed rate cap have organized an opposition website with information on the bill and it’s potential consequences. That website address is: www.savemypawnshop.com

San Diego Pawn Shops, Gold Buyers, Gold Refineries, & More

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