What do you guys think about investing in Pawn shop or PayDay Loan companies?

Discussion in 'Stocks' started by gymratnyc, Apr 21, 2008.

  1. ElCubano

    ElCubano


    not every pawnshop is in the hood....:D
     
    #11     Apr 22, 2008
  2. Not really. These people that get payday loans, signs "contracts" that states that if they don't pay, the funds will be taking out of their checking account automatically, if that fails, garnish on their payroll....most folkf are not even awre of that. If that all fails that the company can not collect, and the customer goes to another payday company, all these companie are "electronically" tied and if you default, you pop up everyware within that state.

    I know this shit, beacuse my friend is a GM for on of these big companies.
     
    #12     Apr 22, 2008
  3. PaulRon

    PaulRon

    Why is the government involved in this at all?
     
    #13     Apr 22, 2008

  4. Pay Day stuff is good. There is an art to running a pawn shop.

    John
     
    #14     Apr 22, 2008
  5. u21c3f6

    u21c3f6

    I was referring to the customer. It is a very expensive way %-wise for a customer to get a relatively small sum of money.

    Joe.
     
    #15     Apr 22, 2008
  6. 9999

    9999

    Thank you for the explanation. I am aware that those rates are applied for a very short period of time, but this is downright usury, at least for me. What is the typical delinquency rate?
     
    #16     Apr 22, 2008
  7. LOLOL, it's hard for me to think that someone who would want to pawn their valuables as not being desperate on some level, hood or not.
     
    #17     Apr 22, 2008