Pawn brokers have been likened to loan sharks and life-savers

MENTION the word pawnshop and 24-year-old Vincent Lim shifts uncomfortably.

To many people Lim’s age, the word “pawnshop” is a dirty word.

“My parents have warned me from young not to go to such places.

“I’ve been told that pawnbrokers are like ah long (loan shark) and we may have red paint splashed all over our house if we patronise them,” said the young hairstylist, who had to date, abided by his parent’s instructions not to set foot in one.

“To me, pawnbrokers and loan sharks are pretty much the same,” added Lim.

His colleague Abbey Tan revealed that he once pawned a gold item at a pawnshop when he was strapped for cash four years ago.

“I was 20 at the time and my heart was pounding when I walked into the pawnshop.

“I think the stress was from the desperation to get a good offer for my gold and the fear of being seen walking into a pawnshop,” Tan said.

Tan added that with so many offers of credit and loans from banks these days, it was no longer necessary to pawn one’s valuables when in need of cash.

“Every other day, I am getting phone calls from this bank and that bank offering me personal loans off my credit cards,” he said.

Licensed shop: Foo at his pawnshop in Kuala Kangsar.

Hawker Roshan Daud called pawnbrokers liars.

“They claim to send out a notice after six months to redeem your valuables but they do not and people end up losing items that are dear to them.

“People pawn their items and not sell them because they want them back later on.

“Why else would they go to a pawnshop?” asked the 53-year-old grandmother.

At the other end of the spectrum, there are those who regard pawnshops as an actual legal business entity.

Manager S. Anbalagan, 40, said he did not see why people should be afraid of walking into pawnshops.

“There is a need for it and I do not see anything wrong with pawning one’s valuables. At least that person has something of value to pawn.

“Perhaps, there should be a regulation to allow people who have attained the legal age to set foot into a pawnshop,” he said.

Roti canai seller Joe Segaran, 35, said pawnshops could be life savers when one was desperate for fast money.

“There is nothing negative about patronising pawnshops.

“For people who are in dire need of money and need the money fast, pawnshops can be a life-saver.

“I would prefer to go to a pawnshop than to borrow money from friends or relatives as it could lead to misunderstandings.

“Plus, it is only a minimal 2% per month and you have until six months to redeem your items,” he said, adding that borrowing from banks tend to take some time due to all the documentation needed.

Stressing that there was really nothing to be ashamed of to walk into a pawnshop, he added that it was better than being entangled with loansharks.

“Now that is shameful,” he said.

Pajak Gadai Koong Sing owner Eric Foo Pey Chung clarified that licensed pawnshops were regulated under the Pawnbrokers Act 1972.

Relating his past experiences when telling people that his family owned a pawnshop, Foo said he would get the same shocked reaction each time.

“They will be quiet at first and then say, ‘oh, ah long’.

“I think many people are convinced that pawnbrokers are what they see in the Wong Fei Hung movies.

“No, you will not see a shirtless man with one leg on the chair and one hand holding a parang on his shoulder. That is only what you see in the movies,” he said.

Foo said licensed pawnshops were genuine businesses governed by guidelines and did not charge over the 2% monthly interest set by the government.

“We issue reminders to our customers when the six-month redemption period comes to an end and if the customer does not choose to extend the redemption period, then we put the items up for auction.

“We cannot simply sell the items,” he said.

Foo also said there was no need to be ashamed of patronising pawnshops.

“There are people who would actually wait outside the shop until there are no customers in the shop.

“They are in and out of the place in two minutes at maximum.

“While this is true of some, many Indians and Malays are proud to be able to obtain funds without having to beg, steal or borrow,” he said.