Area pawn shop owners are protesting a bill they say is "bad for business." It would cap interest rates at 36 percent nationwide, significantly reducing pawn shop profits.
It happens every recession: business at pawnshops increases. Managers at American pawn in Garland say most people come to trade merchandise for money. they also say the recession is changing the face of the typical custom
Manager Morgan Jones says, " Blue collar workers to people working corporate jobs, anyone needing a loan at this point."
Many utilize temporary short term loans. congress is targeting these loans because of high interest rates.
For a $100 loan for one month with an annual percentage rate of 240% pawnbrokers make a $20 profit. But the proposed bill would make the annual percentage rate 36 %, lowering profits on that same loan to just three dollars a month.
Faced with making less money, North Texas pawnshop owners are asking customers to fill out postcards and send them to congress. At Uncle Dan's pawn shop its the same protest, just a different method.
Manager Dave Martinez says, " We're going viral, we're sending out emails, we're doing email blasts, we're sending to all emails we have access to."
According to the BBB, there have been no complaints filed against pawn shops in our area in regards to interest rates but they say if your going to use them there are some things you should keep in mind.
BBB representative Jeanette Kopko says, " Don't pawn anything that you can't afford to be without, and make sure you can make those payments."