139% interest rate?! Crushing quick-loan rates turn $2,500 debt to nearly $14K

[crazy canuck]

On the other hand the sheer number of such charges suggests that pawn shops are almost inherently and inevitably acting as fences for stolen property.

Yep, here in the lower mainland municipalities created regulations requiring pawnshops to obtain the identity and address of the people providing the goods and keep that information on record; to keep the goods for a specified period of time (to allow any proceeds of crime to be identified before it was sold); and to require the pawnshops to advise the police if they recieved certain items (having mostlly to do with value of the goods). 

It had a dramatic impact on decreasing the amount of stolen goods recieved by pawnshops and the rates of home robberies.

[Malthus]

On the subject, anyone have any experience with pawn shops?  Ever bought anything in one?

Prosecuted lots of 'possession of stolen property' claims coming out of pawn shops.

On the one hand the pawn shop employs are fairly helpful, despite being repeatedly dragged into court.  I suppose they know if they aren't helpful the police will make life very difficult for them.

On the other hand the sheer number of such charges suggests that pawn shops are almost inherently and inevitably acting as fences for stolen property.

I always wondered if those "we buy your gold!" places were really targeted at thieves, as an easy way to fence stolen jewelry.

I just can't imagine that there is a big enough demographic of people who just want to sell their own jewelry for its bullion value to keep them all in business.

[Jacob]

I agree, but that is no reason not to have a regulated rate of interest.  Here in Canada we have a criminal rate of interest which is, iirc, 60%.  If anyone charges above that - including "administration fees" all interest charges on the loan are void.  And we still have payday loan shops to fill that niche.

Yeah, I think there needs to be a legal way to get short-term loans for low-credit score people; and obviously the interest they charge there is going to be somewhat steep. If there is no legal payday loans or similar, then organized crime will step in (again) and that's no good.

But the area clearly needs to be well regulated, or we get the kind of things that Sav posted at the beginning of this thread.

[Barrister]

On the other hand the sheer number of such charges suggests that pawn shops are almost inherently and inevitably acting as fences for stolen property.

Yep, here in the lower mainland municipalities created regulations requiring pawnshops to obtain the identity and address of the people providing the goods and keep that information on record; to keep the goods for a specified period of time (to allow any proceeds of crime to be identified before it was sold); and to require the pawnshops to advise the police if they recieved certain items (having mostlly to do with value of the goods). 

It had a dramatic impact on decreasing the amount of stolen goods recieved by pawnshops and the rates of home robberies.

We have similar regulations.  I have no doubt it helps, but since we continue to see stolen property in pawn shops it is hardly perfect.

[crazy canuck]

On the other hand the sheer number of such charges suggests that pawn shops are almost inherently and inevitably acting as fences for stolen property.

Yep, here in the lower mainland municipalities created regulations requiring pawnshops to obtain the identity and address of the people providing the goods and keep that information on record; to keep the goods for a specified period of time (to allow any proceeds of crime to be identified before it was sold); and to require the pawnshops to advise the police if they recieved certain items (having mostlly to do with value of the goods). 

It had a dramatic impact on decreasing the amount of stolen goods recieved by pawnshops and the rates of home robberies.

We have similar regulations.  I have no doubt it helps, but since we continue to see stolen property in pawn shops it is hardly perfect.

Why are people demanding perfection today?

[Admiral Yi]

Especially when it's so profitable to lead people into those disasters.

What?

[crazy canuck]

Especially when it's so profitable to lead people into those disasters.

What?

I am curious what part you that you dont understand

[Admiral Yi]

I am curious what part you that you dont understand

The major part I don't understand is how profitability and leading make it especially bad to incur debt to pay for recurring expenses.  If there was no profitability and no leading would that make it a real good idea to incur debt to pay for recurring expenses?

[crazy canuck]

I am curious what part you that you dont understand

The major part I don't understand is how profitability and leading make it especially bad to incur debt to pay for recurring expenses.  If there was no profitability and no leading would that make it a real good idea to incur debt to pay for recurring expenses?

Of course not. 

But back to my question.  Do you understand the point Jacob is making?

[Admiral Yi]

I'm not in the mood for this type of conversation.

[crazy canuck]

I'm not in the mood for this type of conversation.

Take two aspirin then come back and answer the question.

[Ed Anger]

Yi, sensing the oncoming pile on, gets in his car for a smoke.

[Admiral Yi]

Take two aspirin then come back and answer the question.

No.

[Admiral Yi]

Yi, sensing the oncoming pile on, gets in his car for a smoke.

Pile ons I've got no problem with.

[Ed Anger]

Yi, sensing the oncoming pile on, gets in his car for a smoke.

Pile ons I've got no problem with.

It is because they are Canadian, right?