Jobless MPs could turn to pawn

TM Sutton, Victoria

"We see ourselves as the Harrods of pawnbrokers," said assistant manager Philip Diaper, 36, when I offered him my Cartier tank watch. "We tend to deal with the top end of the market, and often get people who live nearby in Eaton Square pawning something so they can pay the school fees."

Founded in 1800, TM Sutton is one of the oldest and smartest pawnbrokers in London, boasting elegant panelled offices opposite Victoria station. However, its upmarket location is not enough to deter every thief from trying to sell on his goods.

"We do get people coming in with things that may not be theirs, but I have been doing this job a long time and I can usually tell them as soon as they walk in the door," said Mr Diaper.

"If we think they have stolen goods, we simply say we don't think the goods are for us. We also have security cameras, and a rule that we won't take ladies' goods from a man and vice versa, to stop people pawning their partner's or ex-partner's goods."

As for the Cartier watch, Sutton's lived up to their upmarket reputation by refusing to take it, albeit very politely. Possibly they suspected I was a thief; more likely it was for the reason they gave - because the gilding on the case was less than perfect - though they were the only brokers who refused it.

Hatton Garden Pawnbroker

Located between a diamond merchant's and a jeweller in the capital's famous jewellery district, this upmarket pawnbroker deals mainly in watches and jewellery but will consider most goods.

"Someone tried to pawn a racehorse here once, but we turned them down," said general manager Stephen Pam. "Goods we have given loans on include Lamborghini sports cars and a foot-long 17th century ornamental ivory phallus. We get all sorts of people, ranging from pop stars pawning their Rolexes because they have run out of money, to very famous members of the House of Lords, but we treat them all the same. Often they are asset-rich but cash-poor, and they like coming here because it is more discreet than going to a bank and asking for a loan.

"Customers can be embarrassed coming in but we put them at their ease by saying that using a pawn-broker is like going to a bank. Sometimes we get people coming in with rings after their engagement is called off.

"Sometimes it is not money they need but time, and a chance to talk to people. I feel like a doctor, helping them with their problems and giving them advice. Once I sorted someone out after they came in wanting to pawn something to help them pay their mortgage. I told them to ask their mortgage company for three months' grace with the repayments, which they did, and it was nice to help."

Mr Pam offered me £75 for the watch with monthly interest at five per cent.

Berkeley Credit and Finance, South Kensington

Just down the road from Christie's, this pawnbroker opened in South Kensington two months ago and already sees about 40 customers a day.

Operational manager Narendra Walji said: "This is a very posh area and we get some very posh people coming in. You never know who is going to walk in next - we even had an ambassador come in and pawn a Rolex - but you just treat them like normal people."

According to Mr Walji, pawn-broking is booming as banks become stricter with customers over loans and repayments.

He said: "Pawnbroking is a funny industry but I really enjoy it. Customers are pleased because you are benefiting them and you are pleased because they are benefiting you. It is a good mutual relationship." He offered £150 cash for the watch, with a monthly interest rate of 6.5 per cent.

Attenborough Jewellers, Bethnal Green

"We are offered everything here, from sports cars to pornography," said managing director Charlton Edwards, 36. "Someone once came in here and pawned some extremely pornographic etchings by Picasso. They were dreadful - very graphic pictures of a lady - and you wouldn't have wanted them, even behind your living room door. Still, we loaned the owner £1,000 or so."

Attenborough's was the busiest of the six pawnbrokers we visited, with crowds of Asian women clustering round displays of gold bracelets for sale. Mr Edwards, who has worked in the business since he was eight, said: "In the last 10 years there has been a definite change in the type of customer we get. Traditionally the sort of people who visited pawnbrokers were pensioners, students, the unemployed or gamblers, but now we are getting a real cross-section.

"Yet there still seems to be a stigma attached. You just don't get people telling their dinner guests they pawned their watch that afternoon." Mr Edwards offered £50 for the watch with monthly interest at 5.5 per cent.

Wagonmark, Golders Green

Between a pizza restaurant and a curry house, opposite Golders Green Tube station, this is one of a chain of eight pawnbrokers, seven of them in London and one in Canterbury. Unlike some of the more upmarket shops, which often take nothing but jewellery and "prestige" watches, Wagonmark often take cars from customers as surety for loans.

"We lend money for sports cars and have a secure garage to keep them in," said Kim Louca, 41, assistant to director Ehud Zaidman. "We get a wide variety of people wanting loans, and some get embarrassed. If that is the case, or if they want privacy for any reason, we have a partition in many of our branches and they can go behind that."

As with all pawnbrokers, security is very important at Wagon-mark, and precautions are taken. Mrs Louca said: "In some branches we have security cameras and security on the doors, so you have to ring a bell before it is unlocked.

"Occasionally people may get angry, but it is rare that we have to call the police. If people can't afford to get their pawned goods back we will do everything we can to help them." Wagonmark offered £120 cash for the watch, with a six per cent monthly interest rate, or £150 cash with 6.95 per cent interest.

Albemarle & Bond, Wembley

Part of a chain, this broker is in a busy street full of discount stores in the middle of Wembley. On a Friday afternoon it was bustling with people many of whom, according to staff, were probably getting money for the weekend.

"We are like a bank for a different sort of customer," said trainee area manager Tony Lambert, 33. "The kind of customers we get may be those the banks turn away, maybe because they can't get credit. We are a lot cheaper than getting an overdraft, if what you are after is a short-term loan. You can be in and out of here with some cash in a few minutes, without being asked 101 questions."

A typical customer, he said, is a young man pawning his watch for weekend drinking money. Like the other pawnbrokers, this one gets its fair share of people trying to pawn stolen goods, but Mr Lambert is confident his staff do not fall for it. "You just know them as soon as they walk in," he said. "We just refuse to take whatever they are offering." He offered £125 for the watch, with interest at 7.6 per cent per month.