U.S. NEWS – Rich Pawn Their Belongings

via U.S. News

December 18, 2008 04:00 PM ET |  Kimberly Castro

Pawnshops—loan companies that take items as collateral—have always gotten a bad rap. This stereotypical image often comes to mind: A seedy store stuffed with broken belongings in an unsafe area of town often catering to derelicts and criminals. But with the credit crunch, pawnshops are seeing renewed life. More cash-strapped Americans are pawning their belongings—from diamond rings and necklaces to iPods, televisions, and even boats. As a result, pawnshops across the country are seeing their businesses grow and are attracting a broader range of clients, including the well heeled.

From Reuters: ” ‘Banks aren’t lending, so people are coming here for short-term loans against collateral like diamonds, watches, and other jewelry,’ said Jordan Tabach-Bank, CEO of Beverly Loan Co, self-described ‘pawnbroker to the stars.’ . . . ‘I do see my share of actors, writers, producers and directors,’ he said, but also cited more visits from white-collar professionals and especially business owners struggling to meet payroll obligations . . . We still do the five-, six-figure loans to Beverly Hills socialites who want to get plastic surgery but never have we seen so many people in desperate need of funds to finance business enterprises,’ he added.”

“This is an edited excerpt of “Rich Pawn Their Belonging”  by  Kimberly Castro”