Would getting rid of Title Pawns help Huntsville? (Madison: low income, rent)

[CoreLysium]

Whether this is just a mental exercise or something that could eventually be addressed to the city council, I was thinking of things that damage our city. I've never been to a title pawn. I'm sure most people who are here on city-data haven't ever been so desperate they'll accept 120% interest rates, but these places stay in business so many Huntsvillians must be using them.

I guess the news, since the state of the union will be about the poor tonight, has gotten my head thinking about what can actually be done with minimal legislation. Scam proofing of welfare is a difficult road, and not within local reach anyhow.

The title pawns do a lot of harm, but do they ever do anything good?

And, if there was enough interest in getting them removed, is there a legal way to do it? If not, then nevermind, I guess we're stuck with them.

Have any other municipalities done anything like this?

(Before anyone mentions it, mattress stores are OK.)

[YNVVA]

They do all sorts of good. They allow people to keep their nice rides while paying 2million percent interest on them. Isn't that like giving back to the local economy? :P

[bmrisko]

The fact is a good percentage of Americans don't understand the concept of interest rates, compounding interest or other basic economic principles. This is the same reason those Rent-to-own places stay in business, where you pay $30/month for 5 years for a TV that sells for $500 at Target.

Shoot, I even saw a place where you can rent your "rims"...wish I had thought of that as I'm sure they make a killing!

[YNVVA]

Originally Posted by bmrisko

The fact is a good percentage of Americans don't understand the concept of interest rates, compounding interest or other basic economic principles. This is the same reason those Rent-to-own places stay in business, where you pay $30/month for 5 years for a TV that sells for $500 at Target.

Shoot, I even saw a place where you can rent your "rims"...wish I had thought of that as I'm sure they make a killing!

I enjoy seeing when people buy one rim at a time and have the pride to drive around without the full set.

[chucksnee]

Originally Posted by bmrisko

The fact is a good percentage of Americans don't understand the concept of interest rates, compounding interest or other basic economic principles. This is the same reason those Rent-to-own places stay in business, where you pay $30/month for 5 years for a TV that sells for $500 at Target.

Shoot, I even saw a place where you can rent your "rims"...wish I had thought of that as I'm sure they make a killing!

I always laugh at these commercials..."only $20" then in very little print it says "a week" for an xbox/wii/PS3....for 12 months...lol....the system costs $400...they end up paying almost $1000...

People amaze me sometimes...it's sad, but true...

[MisterEd51]

Alabama has some of the weakest regulation of pawn shops so you can blame the legislature for that. I don't know if Huntsville could close down pawn shops but if it could what good what that do? They would just reopen in Madison county or some other nearby county. That would then just make people drive a little farther that is all.

Right now high school students are required to take a one semester economics course. I suggest they should also have a second required course on personal finance. Of course that would still not help the people that drop out of school.

You can have some regulations with regards to predatory practices but you can't expect the government to hold everyone's hand when people make all spending decisions. In a free country people have a right to be stupid. I don't see that changing any time soon.

Pawn shops have been around for over 3000 years so i don't see them going away any time soon. Eliminating them will just make activities like this move underground where there will be absolutely no regulations or consumer protections. Also some desperate people will be forced into illegal activities such as crime to get the money they want.

[Baan]

Originally Posted by CoreLysium

Whether this is just a mental exercise or something that could eventually be addressed to the city council, I was thinking of things that damage our city. I've never been to a title pawn. I'm sure most people who are here on city-data haven't ever been so desperate they'll accept 120% interest rates, but these places stay in business so many Huntsvillians must be using them.

I guess the news, since the state of the union will be about the poor tonight, has gotten my head thinking about what can actually be done with minimal legislation. Scam proofing of welfare is a difficult road, and not within local reach anyhow.

The title pawns do a lot of harm, but do they ever do anything good?

...

How, exactly, do title pawn shops "damage our city"?

On another note, just because one might accept what another would consider a usury interest rate does not necessarily make one desperate. Have you considered that some people knowingly choose to live beyond their means and accept the fact that they are building debt? Have you considered the fact that some of those who choose this route may not have access to other credit/income sources to satisfy their desires/wants? Notice that I did not write needs.

[Seth Parker]

I don't think what we need is more government interference. People should educate themselves and know what they're getting themselves in to. If they're ok with that, then why should the government decide what's good for them? If I wanted to eat a fat steak with a ton of butter, it's probably not good for me......but it's my choice. I don't want the government telling me whether or not I can have steak anymore.

On the other hand, if the government wants to try and educate people about the dangers of these things (if we could actually afford it)......then I wouldn't have as big of an issue with that. Educate more, regulate less.

In my opinion, the government shouldn't be a safety net for people that make bad choices.

[BMW Dave]

Originally Posted by MisterEd51

Right now high school students are required to take a one semester economics course. I suggest they should also have a second required course on personal finance. Of course that would still not help the people that drop out of school.

Thank you!

I have been saying that since I was in High School. Almost no one I knew in High School managed money well then or now.

Peoples parents either do nothing or just say "credit BAD" and leave it at that. People need financial education NOT Financial Abstinence.

I like how I brought that around to a fiery topic!

[SaltyMutton]

Pawn shops are good for low income people. If you understand ecomomics you get it. Pawn shops have saved me on several occasions.