pawnbrokers up sharply with inflation
The rise in the price of basic necessities is pushing more and more people to open the door of Crédit municipal in Toulouse. Their objective: to obtain cash in exchange for a valuable item that they could come and collect.
Decline in purchasing power, increase in the price of energy and basic necessities, increase in interest rates… the economic context has changed a lot in a few months. In this context, pawnbroking, formerly known as pawnbroking, where valuables were “put on the nail” in exchange for money, is making a comeback.
It is the Municipal Credit, a public institution that manages these transactions. It offers loans at optimized rates in exchange for an object that the person can come and collect when they have the means to repay.
In Toulouse, around 80 people come to the Crédit municipal every day. Currently, attendance is increasing. “During the health crisis, people were helped, so they were able to get by, explains Franck Painabaisse, director of the municipal credit of the city. But with the increase in prices, we are seeing a resurgence of activity and a 10 to 15% increase in demand compared to a typical period. It’s a lot !”.
The establishment is reorganizing its services in order to receive this additional clientele. “This is very recent and linked to the war in Ukraine, the increase in the price of raw materials, prosecute the person in charge of Municipal Credit. People need to be helped. They come back for difficult ends of the month, a bill to pay, a health expense”.
As collateral for the money lent, people deposit a valuable item. “These are 90% gold items, says Franck Painenverse, jewelry, watches, small bronze objects for example. But it can also be more diverse objects such as paintings or sculptures. We accept anything of value except bulky items.
“Of course not everyone has such objects available. Those who do not offer it are rather oriented towards social assistance. Often, people who encounter a one-time difficulty. They collect their items and we have them ready. As a rule, it turns a lot”.
6 000 the loans have been granted since the beginning of the year, approximately four million euros. The average loan is around 500 euros. Crédit municipal is not intended to speculate. It is a public establishment intended to help people who are going through a difficult time, specifies its director who speaks of “troubleshooting”.
The establishment anticipates the coming months and provides an additional budget of 3 to 4 million euros to deal with this new crisis.