On November 24, 2011, USA Today published an article by Candice Choi, Associated Press Personal Finance Writer regarding the pawn industry. She quoted Edward Bean from Suffolk Jewelers & Pawnbrokers in the article. Read the original article here, or below:
Need cash? Pawn shops edge into the mainstream
By CANDICE CHOI, AP Personal Finance Writer –
NEW YORK (AP) — Pawn shops are beckoning from the shadows.
At a time when banks have shut their doors on those with bad credit, a growing number of borrowers are pawning their jewelry, electronics and other valuables to make ends meet.
Consumer advocates say the development is concerning because the interest rates on loans from pawn shops can be as high as 20 percent a month. But pawn shop operators say they provide a critical lifeline to a group with few other options.
“It’s a collateralloan — it’s designed to bail someone out and be done with it,” said Ed Bean, who owns Suffolk Jewelry & Pawnbrokers in Boston.