John Nichols of H&T hits back at criticism of pawn shops

A pawnbroker whose firm was criticised for comparing gold with sweets has hit back saying that they provided a service for those in debt.

John Nichols, chief executive of H&T, whose 200 stores include those in Gillingham and Chatham, blasted plans to limit the number of high-interest loan shops in Medway.

He said: “Why do we do it? Because there’s a need. Why wouldn’t you allow market forces to regulate the market? If you’ve only got two pay day lenders on the high street, what’s going to happen? What’s the real benefit?

John Nichols, chief executive of H&T Pawnbrokers
John Nichols, chief executive of H&T Pawnbrokers

“If you think the charges are too high, fine. That’s your view. My view is you should provide services in a safe environment.

“If we weren’t here people would go down the pub to flog things or try to borrow money there.”

The 62-year-old spoke to the Messenger after Medway councillors criticised H&T for its marketing tactics – including offering £50,000 loans for Christmas and handing out sweets saying “same weight in gold, I can give you at least £50”.

Councillors want to change planning laws so they can restrict the number of high-interest loan shops in certain areas, saying they are a drain on the poor.

By Mr Nichols’ own admission, half of H&T’s customers do not even have a bank account. “It’s hand to mouth”, he said.

The only people who have a problem with it are the people who don’t understand it.

Although the average customer reclaims goods after three and a half months, almost a quarter (22%) at the Gillingham High Street branch do not get their possessions back.
Asked if sentimental items are pawned, Mr Nichols said: “Of course. We get wedding rings, engagement rings, chains and lockets. The mere fact that it’s a jewellery item means it was probably a gift at some point.”

He added: “The education of financial management is something we as a country have never got to grips with properly.”

But he said: “You may not like it or use it or think it’s right, but the point is it’s a regulated product. The only people who have a problem with it are the people who don’t understand it.

“You won’t get away from the stigmatisation that’s been built up over the years, but if you don’t have this where are 10 million people going to go for short term credit?”

Close This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies.Learn More