The Pawn Industry.

Pawn Industry.

It isn't a spelling mistake when you read the title and I am not going to talk about the other industry beginning with a P. A boom business in the UK the Pawn Industry has led to an influx of Money Shops and Pawnbrokers Shops on our high streets.

To me this highlights one thing in particular and that is that the bad times in recession are still not over. Popping up all over the place are Money Lenders who operate services such as Cheque Cashing along with Payday Loans.

The industry is having a bumper time as people struggle along on low wages, some having not had a pay increase for a number of years. Rising fuel prices, not to mention food prices as in a previous article of mine, we all search out the bargains in shops not wanting to spend a penny more than we feel we have to.

They will boom at this time of year as Christmas looms ever faster and people with very little cash in reserve look to offload their unwanted items and jewellery realising their cash value.

350th Money Shop Opening.
350th Money Shop Opening. | Source
Walthamstow opening.
Walthamstow opening. | Source
Source

Money Shops.

Money Shops at the time of writing have over 500 stores in the UK. There are multiple shops in some towns and cities and if you go out and about in Peterborough or out and about in Leeds you will find at least 3 stores within a very small radius. They are also usually situated close to areas of deprivation it would seem, as well as been in City centres and busy high streets.

This has got to be a business for all climates. A recession proof business if ever I saw one.

Now, you may think that this article is no more than an advert for The Money Shop, but I can assure you it isn't. It was as a result of me taking a walk around Peterborough City centre today that I realised that so many of these shops were cropping up and there were three that I knew of locally.

Whilst I know the recession has had a detrimental effect on our high streets and a walk in a town centre in the UK will prove this with the number of empty shop units where stores have gone out of business and have been forced to close their doors. Pawn Brokers shops are cashing in, in more ways than one on the situation. Obviously they are providing a necessary service as there is a demand for the services they provide but I can't help thinking that they are exploiting the situation and will no doubt have a tendency at times to rip unsuspecting people off.

Legal Loan Sharks.

As can be seen from the photographs above there are a many people who share my views that it is just possible that vulnerable people in our society are more at risk of being ripped off legally.

It seems that there is a general consensus of opinion that numbers of these shops should be regulated.

It is the fact that they charge such high interest on products like payday loans and can often be in the region of 1000% in some cases. Are they a rip off, or is it just me ?

Other loan shops are available.

Whilst it looks like I have singled out the company in this article I would like to point out that there are other high street loan shops available and a quick Google of 'money shops' will show you what I mean.

The copyright of the work of poshcoffeeco is protected. Please do not publish any work of Steve Mitchell without first receiving his personal permission. Any attempt to illegally copy his work will be subject to the laws of the land of Great Britain at the time of publishing.

© poshcoffeeco ( Steve Mitchell )

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Comments 7 comments

Mhatter99 profile image

Mhatter99 4 years ago from San Francisco

Thank you for sharing this.Though I have friends in this business, I admit I am completely ignorant of what they do.


poshcoffeeco profile image

poshcoffeeco 4 years ago from Cambridgeshire Author

Mhatter99, thanks for being the first to comment on this article.


tobusiness profile image

tobusiness 4 years ago from Bedfordshire, U.K

The problem with these loan companies, is that they are aimed at people who are least able to pay back the enormous amount of interest with astronomically high per cent of APR.

The people who can afford it, don't need it, and those who can't do. Only people who are very desperate, and can not get a loan any other way uses them. I don't really know what the answer is, but some people are indeed doing a roaring trade.


poshcoffeeco profile image

poshcoffeeco 4 years ago from Cambridgeshire Author

tobusiness, I guess the answer is for people to stop using them and govt to limit their expansion. We know that isn't going to happen so the only thing left is to educate people. Thanks for your comment.


shiningirisheyes profile image

shiningirisheyes 4 years ago from Upstate, New York

The influx of legal loan sharks, money stores and pawn shops in your area is a sad sad reality to what you have described. It is upsetting to know so many hard working people have reached the desperation point of pawning much loved items to get them through.

Very reflective hub of the times and I will be sharing.


always exploring profile image

always exploring 4 years ago from Southern Illinois

The pawn shops have doubled here. Very sad to think many have to pawn their possessions to survive in this economy. I am sorry to hear that it is the same in England. Thank you for sharing..


poshcoffeeco profile image

poshcoffeeco 4 years ago from Cambridgeshire Author

shiningirisheyes,

we meet again, twice in one day!

Thanks for the share of this article I really appreciate that and for your wonderful support.

always exploring,

it is fast becoming a blight on our high streets and shopping districts. The other scurge is Betting Shops and this will be a target of one of my next articles. It kills me to think that the vulnerable in our society are the main targets for these kind of operations.

Thanks my friend for your support once again.

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