How to Capitalize for the Looming Economy and Pawn
Pawn – Banks – Government
Ladies and Gentlemen in Pawnland!
As a 2nd generation pawnbroker with more than 40 years in the space, I remain amazed of how much the industry has transformed and come into the mainstream.
Being out there in the public’s eye like no time in our history has good and bad effects. For those of you who have heard me speak publically this past number of years we have generally indicated the Pawn business is very robust from a global perspective.
Public money coming into the space some 30 years back certainly help launch the most significant changes in industry history in some 3000 years.
Public money, the economic strife the world faces today, uncertainty and more regulations in the banking and alternative finance sectors, all coupled with with more favorable media and press has also yielded a renewed interest in our business with the mainstream and more and the industry has actually stabilized quite nicely post the most recent gold boom I might add.
As a result of this renewed activity in the pawn space – banks, regulators, governments and a host of many other players have also been drawn into the Pawn drama as I commonly refer to as some of the challenges the industry faces today as a result of a host of new factors and more.
There are two credible pieces we need to bring into in perspective for our friends and family operating in the United States.
Two of our industry associations have been informing their membership about increases from more financial institutions sending discontinuance notices to their clients.
Across the country there have been many situations where banks have discontinued relationships with ‘Pawnbrokers”.
In recent months and particularly in the past few weeks, NPA members have received notices from their banks terminating their business accounts and banking privileges. JP Morgan Chase, The Huntington National Bank, Wells Fargo, and Sun Trust Banks, among others, have mailed discontinuance letters to CAPA and NPA members across the nation.
The letters announce that banking privileges will be terminated in the next 30-60 days.
PCG has previously denoted the Bank of America was also a bank that issued a discontinuance many years ago with the Industry
There is no information publicly available that explains these actions. However, members of these associations and more are reporting that when pressed for answers bank officers and branch managers feel that bank examiners or bank compliance departments have been asserting pressure to terminate certain businesses that federal agencies consider to be “high-risk.”
Stop Unjustified Bank Discontinuance – Make your voice heard today!
Consumer Finance Protection Bureau – Hot off the Wire
CFPB Begins Accepting Consumer Complaints on Prepaid Cards and Additional Non-bank Products
Non-bank Products Include Debt Settlement and Credit Repair Services, Pawn and Title Loans
WASHINGTON, D.C. — The Consumer Financial Protection Bureau (CFPB) is now accepting complaints from consumers encountering problems with prepaid cards, such as gift cards, benefit cards, and general purpose re-loadable cards. Consumers can also now submit complaints about additional non-bank products, including debt settlement services, credit repair services, and pawn and title loans.
“Today we are taking another important step to expand the Bureau’s handling of consumer complaints,” said CFPB Director Richard Cordray. “By accepting consumer complaints about prepaid products and certain other services we will be giving people a greater voice in these markets and a place to turn to when they encounter problems.”
The Bureau started taking complaints about credit cards when it opened its doors in July 2011. In addition to taking complaints regarding today’s new products, the CFPB also handles complaints about mortgages, bank accounts and services, private student loans, auto and other consumer loans, credit reporting, debt collection, payday loans, and money transfers. The Bureau requests that companies respond to complaints within 15 days and describe the steps they have taken or plan to take. The CFPB expects companies to close all but the most complicated complaints within 60 days. Consumers are given a tracking number after submitting a complaint and can check the status of their complaint by logging on to the CFPB website.
Here’s the link with the full story:
In today’s ever increasing competitive environment it’s just shameful to me that the industry continues to draw unfair scrutiny in the light of the most significant financial scandals in all of history in which trillions of dollars were misappropriated at every conceivable level of banking and government and yet, we the Pawn Brokers continue to take the brunt in the financial scheme of things more often than not!
Off my rant now too!
Respectfully – Jerry Whitehead
Pawn Shop Consulting Group, Inc.
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Jerry Whitehead – Consultant
Pawn Shop Consulting Group, Inc.
8501 NW 77th Street
Tamarac, Florida 33321 USA