Recession tough on repo man, too

[dkf]

Hawaii pawnbrokers, debt collectors busy as ever, but profits down

Advertiser Staff

Conventional wisdom maintains that certain enterprises are recession-proof because their business booms when times are tough. But the magnitude of this recession is changing the rules, say the repo men, pawnbrokers and collection agents on the front lines of economic turmoil.

Many describe the pace of defaults, repossessions and other indicators of financial woe as "the worst" they've ever seen, and they pointed to signs that things are different this time:

• While repossessions of automobiles and other property are at all-time highs, the increased workload has not resulted in equally increased profits.

• The explosion of repossessed vehicles is being fueled by more people losing homes and jobs as well. One repo car was found outside a homeless shelter.

• A new kind of debtor has emerged: the normally responsible guy who usually pays his bills but just doesn't want to let go of his cash now in case he needs it.

For the repo men and collection agents, this translates to one sad story after another, an endless stream of business that's so good it's bad. Some have changed the way they do business to break even. For pawnbrokers and check cashing operations, it has meant watching business crawl to a near standstill.

http://www.honoluluadvertiser.com/article/20090201/NEWS01/902010358/1001

[SpiralHawk]

1. The putrid fruit of republiconomics

Thanks a pantload, republicon 'conservatives'

Ptoooey

[KharmaTrain]

2. Time To Cap Interest Rates...NOW

Even in the best of times, predatory lending should never be tolerated, but especially now. The banks are attempting to save their assets on the backs of those with debt and, since 2005, have had the ability to jack up rates whenever they felt like it. This is what drove a lot of people into bankruptcy and their houses into foreclosure, and there's more on the way. With people losing jobs, the problem will only get worse.

President Obama had talked about putting caps on interest rates and if there was a time to do it, it's now. If anything, roll back the rates to no more than 2% over prime or even to have a "rate holiday" to help people start to get on their feet again. As long as people default, the longer the credit freeze remains the longer the economy stagnates the more people end up out of work...let's hope this is on the agenda and soon.