Monday, August 14, 2006

Tyrone Mitchell waited patiently in line for his turn to approach the counter at Pioneer Jewelry-Music-Pawn in Wilson, N.C.

One hand rested on the bright blue, 18-speed, Index Power Climber mountain bicycle he'd rolled in the door moments earlier. Mitchell needed money to buy gas so he could get from Wilson to his job in Raleigh.

He hoped to get at least a $40 loan for his bicycle.

With money in short supply and payday still days away, Mitchell felt he had no option but to pawn his bicycle. And he isn't alone in his need for a quick cash fix. More than 1,200 times a month last year, people sought money by selling their items directly to Pioneer owner Phillip Jordan or by pawning their items.

Thousands more applied for payday loans.

Jordan said people often pawn items to get gas or lunch money because it's easier than borrowing money from a relative or friend. Pawning costs people more money because of the accumulating interest.

But the transaction takes minutes and cuts out the hassle and embarrassment of asking someone for money. Like faxless payday loans, Jordan said almost all of Pioneer's loans are for $500 or less. The majority are for $10-100.

Robert Johnson has also had more customers recently pawning items for gas money, with the cost of energy increasingly expensive and resulting in tons of consumer debt these days. Johnson owns Wilson Progress Unlimited, Wilson's second pawn shop.

He said another reason people pawn items is unexpected sickness and things costing more than anticipated, insurance in particular.

"I want to say, they'll think things will cost $10 and it will cost $20. In order to not need money, people have to plan things perfectly, and that has not been known to mankind yet," Johnson said.

Johnson sees his career as a pawnbroker as pretty secure given it's one of the oldest known professions, and he serves people who need cash fast.

Pioneer customer Mitchell hopes to pay off the quick cash loan in 30 days and get his bicycle back. Maybe he will, maybe he won't.

Although he doesn't track it, Jordan estimated at least 70 percent pay off their no faxing payday loan on time. Similarly, that percentage collect what they pawned after paying on time. People often return to repeatedly pawn the same item whenever they need cash. Jordan has some items pawned so often he knows the serial numbers by heart.

Johnson said about one-third of his customers don't pay off their loans and collect their property. He also has customers who repeatedly pawn items.

Some use pawn shops for storage. Jordan has people pawn their lawn mowers during the winter months then return in the spring and pay off the loan.

If you go to Pioneer searching for a cheap toaster or a deal on an antique collectible, you won't find either. Jordan doesn't deal in what he calls "yard sale items" or antiques. Customers looking for electronics, musical equipment or jewelry will have more luck at Pioneer.

Johnson says between his shop and Pioneer they service the needs of the "whole public." The shelves of Johnson's shop are packed with just about anything you might want. People sometimes think of pawn shops as a place where thieves and drug addicts take stolen items to get a quick dollar.

But Johnson and Jordan provide law enforcement with records of every transaction they make, and officers know any time they want to look at their books they can. Plus, officers will often ask them to keep an their eyes open for items recently reported stolen. Last year, 13 purchase or pawn transactions conducted at Pioneer involved stolen items.

Wilson Police Detective Amzie Hoffner said stolen property is more likely to be traded on the street than in pawn shops.

"A lot of people use pawn shops legitimately for financial needs," Hoffner said.

Either way, Hoffner encourages people to write down detailed information about items in their homes. Providing police a list of serial numbers and detailed descriptions can make a big difference if a break-in occurs.

As for payday cash loans, they've been banned in North Carolina, although plenty of companies offer them online. As for whether you should pawn something, that's a decision you're going to have to make on your own. Be advised, though, that the stakes — as well as the interest — may be high.

This entry was posted on Monday, August 14th, 2006 at 12:32 pm and is filed under North Carolina.