ANCHOR:
The three thousand year old industry is still perceived by some as a bit shady. But, a squeeze on credit, coupled with high gold prices has heightened awareness and understanding of the ancient tradition. More new customers are walking through pawnbroker doors everyday. Here's a deal you don't want to miss.
STORY:
Pawnbroking hasn't enjoyed the best of reputations. It's usually perceived a last resort, where a person parts with beloved family heirlooms when the money runs out. But John Nichols, president of the National Pawnbrokers Association and CEO of H&T Pawnbrokers says while the industry has been affected by the financial crisis, it's not in the way everyone would expect.
[John Nichols, National Pawnbrokers Association]:
'I think what it has done is given us the opportunity for a lot of press coverage which has meant a lot more people understand the industry. Therefore they go along to the shops and have a look at it and actually probably quite like what they see.
While jewelery remains the most common form of security against a loan, many pawnbrokers now buy gold as well as lend on it. H&T's commercial director Steve Fenerty says that's brought what he calls the Ebay generation through the doors.
[Steve Fenerty, H&T's Commercial Director]:
It's people who are quite comfortable buying and selling things that they have. They maybe don't use a particular item anymore, they don't wear it anymore, or they're just bored with it and they can come to us, realize some cash on it.''
High gold prices have focused many people's attention on the cash potential of their unused and even scrap bits of jewelery. The average pawnbroker loan is one hundred twenty pounds and the average length of a loan is three-and-a-half-months. Most charge seven to eight percent interest, making it one of the few ways people can access low values of credit quickly and easily.
That's key to the industry's success according to Nathan Finch an NPA
council member and director of Pickwick pawnbrokers.
[Nathan Finch, NPA Council Member]:
It's really the ability to get hands on cash from a business that wants to lend you money as opposed to many of the mainstream credit providers that are trying to find reasons not to lend you money.''
With that in mind the ancient three ball pawnbroking symbol may start to represent, 'opportunity' rather than 'last resort'.
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