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PAWN TRANSACTIONS ARE NOT ‘BOOMING’ DURING THE PANDEMIC

and the Pawn Industry is NOT part of any “black market” … 

Last week NPA Lobbyist Cliff Andrews monitored a hearing before the House Financial Services Subcommittee on Consumer Credit and Financial Institutions that was entitled “Slipping Through the Cracks: Policy Options to Help America’s Consumer During the Pandemic”. An innocent enough sounding topic, but thankfully Team GRC was watching.  

First to raise our blood pressure was a witness that stated, “People have lost their internet and have been forced to pawn their computers, which eliminates their ability to communicate with financial services institutions.” And then went on to add that pawn is “booming now.” So, as we all know that is entirely wrong, but let’s take a deep breath and listen some more. 

Then came another witness from a well-known foundation who said, “Consumers will pay higher interest rates for legitimate credit or even worse be forced into an unlawful black market where you will see them pawning off belongings or even use of a loan shark.” Then later went on to add “the worst-case scenario is consumers have to pawn off their possessions or seek financing on the black market.”  

Obviously, both individuals are wrong on all counts. Pawn transactions are NOT “booming” anywhere, and the pawn industry is not a part of any “black market”.  

So, time to set the record straight with a letter from the NPA to the House Subcommittee to be placed on the public record…

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