Pat Martin is a not a fan of Hardcore Pawn


The NDP MP tweets his thoughts on pawn shops and payday loans.

Let’s be clear, Pawn shops are loathsome parasites exploiting the misery of the poor. TV shows that glamorize them are despicable.

Pay day loans and pawn shops are a scourge on the inner city…make charter banks live up to their mandate and provide financial services.

Every vacant store in strip malls gets filled with another PayDay lender because there is no greater return than preying on human misery.


Pat Martin is a not a fan of Hardcore Pawn

  1. I’m not a dipper, but have to agree in this case. Payday lenders are truly an evil blight on humanity that prey on the vulnerable.

  2. The issue here isn’t payday loan shops or pawn shops. It’s poverty.

    Yeah, some people are very poor, desperate and get themselves into tough situations where they need cash – fast. Banks tend to want to lend money to people who are actually likely to pay it back. And, who wouldn’t?

    Payday loans stores lend money to people who are much higher risks of defaulting; that’s why the interest rates or fees are much higher.

    If we ban payday loans or pawn shops, we basically produce an unintended outcome; the opposite of what we want to achieve.

    We remove the only vehicles for poor people to get money quickly, and increase the likelihood that the truly vulnerable will turn to worse sources, like organized crime or illegal loan sharks.

    • This is a possible scenario but by no means the certainty you claim it as. Mr. martin appears to be proposing a middle way which would hopefully suit everyone’s needs.

  3. It’s funny, I often find myself watching “Pawn Stars” (it’s fascinating some of the stuff that comes in to that shop!) and only TWICE have I ever seen someone interested in pawning an item. And one of those two times the proprietors tried to talk the owner out of it (“You don’t want to take a $20,000 loan from us”).

    Personally, I certainly see the “evils” of payday loan operations as MUCH worse than pawn shops.


  5. In Quebec, payday loans are illegal. There are two problems with them: (1) the rate of interest is too high and (2) NSF fees can be applied daily if you don’t have the money in your bank at exactly the time you told the pawn broker you would.

    That being said, it would be impossible to run a pawn shop without charging very high interest. Pawn loans are usually for very small amounts of money and those transactions aren’t always simple. Pawn shops have the same rent and labour costs as retail stores. Charging less than 50% interest is simply not an option.

    Pawn shops provide an invaluable service to poor people. Banks couldn’t offer these loans even if they wanted to. Imagine walking into an RBC branch and seeing a pile of used DVD players and power tools…
    Society, unfortunately, has a simple choice: legal pawn loans or illegal loan sharking.