A number of pawnbrokers across South Carolina have faced a situation that is making it increasingly difficult to operate. In fact, this problem is so serious, some pawnbrokers may be forced to close their doors because of it.

Partly due to flaws in the Patriot Act and partly due to Operation Chokepoint, banks and other financial institutions have told many of their pawnbroker customers that their business is no longer wanted. Banks are telling pawnbrokers that they have to find another place to house their accounts. Other banks are refusing to extend lines of credit to pawnbroker customers.

Has this happened to you? If so, we need to know about it.

South Carolina Pawnbrokers’ Association president Jay Friedman will meet with members of Senator Lindsey Graham’s senior staff this week to discuss the issue and push for Congress to help prohibit banks from blocking pawnbrokers from operating accounts and establishing lines of credit.

Our industry in no way competes with banks, but we help businesses and consumers when banks can’t or won’t. Now, because of federal red tape, those banks are systematically shutting down the availability of funds and credit and making it nearly impossible for pawnbrokers to operate.

Have your banks given you notice to move your accounts and told you that they will close them? Have your banks told you that they will not extend credit because of the industry you’re in? If so, we need to know so Jay can take this with him to meet with Senator Graham’s office and with other congressional members.

Please send your stories to the association’s public affairs liaison Taft Matney at taft@taftmatney.com.

Thank you.