Carrie-Ann places a phone on the counter of a discreet branch in Duisburg, western Germany. In five minutes, she obtains a loan of 120 euros in cash, a valuable contribution in these times of high inflation.
“I wanted to entrust my phone (she has two, editor’s note) because I have shopping to do, cat food, cigarettes for my mother…”, explains the 20-year-old young woman, dark pants and blue hoodie, currently looking for a job.
Everything will be quickly spent because “the prices have become too expensive”, she adds with an embarrassed smile.
Rising energy and electricity costs, in the wake of the Russian invasion of Ukraine, pushed inflation to a peak of 10.4% in October in Europe’s largest economy, a record since the 1950s.
This is the main reason that brought “at least 25% more customers” last year to the offices of Michael Meiering, who runs a pawnbroking agency in Duisburg, in the Ruhr industrial basin.
He is already planning to “queue” in front of his shop when “the actual statement of annual electricity and heating costs” will fall.
Government aid is helping to cushion the surge in prices, but the German economy is going through a soft spot this winter, which should result in a fourth quarter of 2002 of declining growth. The first estimate will be known on Friday.
– From 5 euros –
In need, customers are “ready to temporarily give up their game console to fill the fridge”, explains Mr. Meiering, sneaking into the back room where objects worthy of a Prévert inventory are piled up. : telephones, electric tools, televisions, guitars and other pressure cookers…
Gold jewelry and valuable watches are stored in a separate room, access to which is secure.
The Duisburg branch is one of the seven German subsidiaries of the Schumachers family group founded in 1873 and which presents itself as the oldest of some 150 pawnshops existing in Germany.
The recipe for these private establishments has not changed over time: customers come – especially towards the end of the month – to get quick money, without investigating their private or professional situation, as a bank would do.
It is enough to provide an identity document and, for the precious objects, documents proving the authenticity.
“Loans start at 5 euros and can go well over 10,000 euros,” explains Mr. Meiering.
“My mother has just died and I have money to advance, it’s good that there is this kind of solution to get money quickly,” explains Denyz, a 43-year-old German-Turkish man, satisfied with his loan of 300 euros by having pledged a smartphone worth 700 euros.
He admits to coming “quite rarely” and thinks of reimbursing the money advanced “in a few weeks”
Once the loan has been granted, the depositor has three months to repay it, with one month of tolerance if necessary.
– 48% interest –
This Wednesday in January, a client comes to extend his loan of 60 euros. This costs him 0.60 euros in interest and 2.50 euros in fees per month, according to the scale.
Extrapolated over the year, we arrive at “an interest rate of 48%, which is considerable”, admits Mr. Meiering.
This is the price of discretion and speed for these contributions intended to remain short-lived.
Ultimately, “nearly 90% of the pledged objects are recovered” by customers, the rest being sold at auction, according to the manager.
With the successive crises, “virtually all sections of the population have recourse to pawnbroking, between the unemployed, poorly paid employees, retirees and even entrepreneurs”, explains Susanne Rothfuss-Wamsler, vice-president of the German federation of loan houses. on pledge.
About 500 million euros of these loans were granted last year, according to the federation.
In Duisburg, Carrie-Ann accepted without flinching the amount of the loan offered by the expert behind the armored glass. Sometimes other customers leave disappointed or even come to insults, hoping to get more for their good pledge.
“We are sometimes savior, sometimes scapegoat”, recognizes Mr. Meiering.
