Debt-hit consumers turn to pawnbrokers
Debt-hit consumers turn to pawnbrokers
Wednesday 24th September 2008
Evidence of the trend was provided by the UK's largest pawnbroker Albermarle & Bond announcing that its profits has risen by 43 per cent over the last year.
The company's chairman Charles Nicholson said that people are turning to pawnbrokers as they find that high street lenders are increasingly reluctant to advance money and have tightened their loans criteria.
He said: "Market conditions remain favourable and we have seen an increase in the number of customers across our core pawnbroking business, driven in part by the tighter lending criteria required by mainstream lenders."
News of the boom for pawnshops comes as separate research shows that borrowers who are accepted for loans by high street lenders are being hit by higher repayment rates.
According to MoneyExpert.com, the typical rate on a personal loan of £5,000 has risen from 8.6 per cent to 9.4 per cent over the last 15 months.
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