In Beverly Hills, pawnshops cater to people who hock high-end merchandise when they need cash, at rates higher than banks charge, but well below those paid by the average Joe. While most pawn shops and payday money lenders charge interest rates and “fees” of 300 per cent to 500 per cent per annum, the rich and privileged pay an average of 4 points a month at Beverly Hills hockshops.
“I’ve never seen so many bankers, lawyers, doctors and actors” with valuable things to pawn, said Tabach-Bank, the chief executive officer of Beverly Loan Co. in Michael Janofsky’s Bloomberg article, Down and Out in Beverly Hills: Rolexes, Picassos Hit Pawnshops . With credit drying up at regular lenders, “in many cases now, we’re not just the bank of last resort,” Tabach-Bank said. “We’re the bank of only resort.”
$2.7 Million Necklace, Picasso art works, Warhol prints, Norman Rockwell and Patek-Philippe watches make up the inventory of collateral loans to cover the mortgage, make alimony payments or finance cosmetic surgery. Â So do cars, including Ferrari, Porsche and Bentley.
Hard times have come to Beverly Hills, as adjustable rate mortgages drive monthly payments beyond the reach of deep pockets money.
