FORBES.COM - Feature: Americans rich and poor pawn more to pay bills
via Forbes.com
12.14.08, 07:17 PM EST
Americans rich and poor pawn more to pay bills
By Sue Zeidler and Tim Gaynor
BEVERLY HILLS, Calif./PHOENIX (Reuters) – Whether it’s a Tiffany (nyse: TIF – news – people ) diamond or a three-year-old lawnmower, more and more Americans from all social classes are pawning their possessions to make ends meet.
Pawn shop owners see strong business across the country, even in unexpected locales like Beverly Hills, the mecca of luxury living and shopping.
“Banks aren’t lending so people are coming here for pawn 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.
In the 70 years of the family business, Beverly Loan, which usually charges 4 percent monthly interest on loans, has never loaned so much as it has in the past few months, he said.
“We’re a lot easier to deal with than a bank,” he said from his office on the third floor of a Bank of America (nyse: BAC – news – people ) building near Rodeo Drive. An armed security guard watches over the reception, where case after case is filled with precious gems.
This entry was posted on Sunday, December 14th, 2008 at 11:25 am
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