Man... this grinds my gears...

you buy gold????   HMMM....how much...LOL

It's ashamed to see people get swindled anytime, but to see people take advantage of other's misfortune is despicable. 

Did he pawn it and then not reclaim it without trying to extend the loan? I would hope the shop would offer to add a little more to the deal but times are hard all over, the shop may be in trouble too.

I hate to say this, but it sounds like the pawn shop did what it is that they do.....whether we agree or not....that is their business.....they buy cheap and sell higher...and give even less for pawned items...then charge a ridulously high interest rate on them to get them back

 

SUX, but it's the nature of their business

Sounds like business to me...

 

I mean, the guy knew what he was getting into... He didn't pay in 30 days to get his stuff back... that was the terms of the deal and he lost... it happens.

I dunno about the laws where you live but the places where I really know anything about it, California and Montana, if you don't claim it that's all folks. If I had been the owner I would have thrown the guy another couple hundred in the hopes he'd be back at some point. I'm still getting a good deal but the customer isn't as bummed.

Well nobody forced the guy to accept that price. Buyer or in this case seller beware. I would have been looking for at least 50 percent of the gold value. You sure there was 2500 in gold there?

I don't like to see someone get caught in a pinch when they're in a hard spot, but pawn policy is pretty clear. I don't think he should have pawned something, for any price, if he didn't know absolutely he could pay it back. This is nothing more than a very expensive life lesson.

That's pretty tough to see happen but pawning it for a loan is a lot different than selling it to the pawn shop.  I'm sure if he initially wanted to sell it, he would have sold it for the value of the gold to someone but I'm sure he had every intention of paying it back and getting it returned so he never thought about losing it and took the money that was offered.  That is the nature of the pawn business though and unfortunately when you are on hard times, you don't have a lot of choices for borrowing money.

 

What would have been ideal is if you would have loaned him the money he needed, held the jewelery for collateral for 30 days with the understanding that if it was not paid back, you would then own it and give him the balance of what the gold was worth.  Not saying you should have as you are not in the loan business but hind site in seeing that might have given him a lot less risk and you the ability to keep him from getting bonzied.

Small claims court is a small price. If he did truly still have his receipt (you are to keep and present at time of pick up) showing less than 30 days....I would threaten lawsuit...or at the very least go back with a police officer and have them charged with damage to priv ate property and theft.

Your friend didn't necessarily get ripped off.  It appears he knew the value of the ring when he went into the pawn shop.  He only got $600, because that's all he wanted to take out on a loan.  If he had gone into that pawn shop and asked to sell the ring outright, he probably woul've gotten half of market value for the ring.  He probably could've gotten a loan for that amount, but I imagine he knew he couln't pay that amount back within the 30 day time period.  The $600 was probably just enough to get him by (pay bills, food, etc.), and he figured he could come up with that amount within the 30 days.  Guess that didn't happen.  This kind of scenario is what pawn shop owners look for.  That's how they make their biggest profit - from people who take a small amount of the value of an item as a loan, but never return to pick it up.  They also are taking a risk.  Yea, it's a no brainer when it comes to gold jewelry, but how many other items do they take in, and they just sit on the shelf and are never sold?  Like others have said, times are hard for everyone.  When day 31 came and went, the pawn shop legally was allowed to do whatever they wanted with the pawned merchandise.  They probably melted it down so fast because that's instant profit.  Keeping the ring in the case wouldn't make much money these days, especially if it's a custom piece.  Most people who would drop $5K on a ring, would probably just get a custom one made to their liking, than spending that kind of money on someone else's personal taste.

I think Bionic hit the nail on the head. Why pay interest on 1500 if 600 will get you by. It sucks for your friend but it is also 100% his fault.

I agree with bionicarm.
 

 

lol, their all rip offs, and so are payday loan places.  And you are probably right, you'd probably be a millionaire...

 

but they are dealing with a higher risk pool...  And well you can command higher prices for lending considering the higher risk...  Now melting something down after 31 days?  That sucks, imo probably a lie. 

 

In texas, they have to hold onto stuff for 90 days...

I type so slow...so many people answered before I got finished...LOL..I need typing  lessons.

 

Pawn shops resell the jewelry for much less than it's worth....Can the fellow/lady go back and purchase the piece? It would be more expensive than the original money needed to get it out, but I would hate to lose a custom made piece. Then say in your heart....expensive lesson learned, and never do it again.

 

.My sister was a master at getting jewlery and pawning it (drug addict)...I think I pawned some gold once, it was such a rip off I never did that again, I knew what my pieces were worth, but when there is no food in the house and you have children to feed,  you do whatever you have to.

 

I may get flamed for saying this....

 

Now I know there situations where the following just isn't so...but I say this as a general rule.....Payday loans are a Godsend to those who can't get money any other way, if you repay quickly and not do it on a regular bases, car title loans too. I used a payday loan for a vacation, my time fell between checks...I borrowed what I knew I could repay in the 14 days and as soon as it was due...did so, ...I never needed a loan like that again, but I had no time to putz around if I wanted to have some fun and go with my friends at the last minute instead of staying home as originally planned. I had a great vacation too..it was worth the extra cash I paid.

 

To be honest, those who default on payday loans are the same people who won't pay back friends or family when they borrow from them either...in fact they can't get quick money any other way, and there is a reason they are in such straights. Same thing with folks who buy a used car with 18% interest....They are a bad risk to loan money to, and can't go get a regular loan at a bank because of their past repayment history. They could rebuild their bad name and credit if they would at least repay those loans.... Credit is a privilege not a right.