Nacional Monte de Piedad
Pawnshop | |
Founded | 1774 |
---|---|
Headquarters | Mexico City |
Website | www |
The Nacional Monte de Piedad is a not-for-profit institution and pawnshop whose main office is located just off the Zócalo, or main plaza of Mexico City. It was commanded to be built between 1774 and 1777 by Don Pedro Romero de Terreros, the Count of Regla as part of a movement to provide interest-free or low-interest loans to the poor. It was recognized as a national charity in 1927 by the Mexican government.[1] Since the first decade of the 21st century it has been a fast-growing institution, with over 200 branches all over Mexico and plans to open a branch in every Mexican city.[2]
Main office
The main office is located on the northwest corner of the
The
This building was extensively remodeled in 1984, with a number of projects. The outside walls of the building were cleaned, refurbishing the wood and ironwork of the portals and balconies, then sealing them against the effects of pollution. Floors, patios and columns were stripped and polished. Protections were placed on each appraiser's window and the art salon was enlarged.[1]
A fire, due to a short circuit, damaged this building on 17 April 2004. It began in the cashiers and appraisers’ rooms where 10 people were working on remodeling project at the time. Fire was seen on the ground and first floors of the building; however, no pawned items were damaged.[5]
The institution
Origins and history
The
Terreros (1710–1781) was born in Spain and arrived to Mexico in 1730,
Operations began in 1775 in the College of Saints Peter and Paul and where the current main office is now.
After
Primary functions
Since its foundation, it has had two unchanged fundamental objectives. The first and foremost is with respect to loans to families with emergency needs, giving the most favorable conditions possible and without considering possible financial gain to the institution. Its first and primary lending strategy is microloans secured through pawned objects.[6][7] However, because the foundation lost significant money in its early years, the governing board decided in 1782 that it was necessary to charge fixed interest.[1] Because they are a charitable organization, they will take items with a value as little as 30 pesos; however, the average loan is about 500 pesos.[8] Most of the pawned items are jewelry and watches but the institution will also take a variety of objects such as cars, domestic appliances and even sheets and linens.[2] However, it has since added some other financial services such as banking services, begun in 1878 and home equity loans, begun in 1997.[6][7]
The second has to do with the money the enterprise does earn. In the past decade[
Current operations and growth
The institution has become so widespread in the country, especially since the year 2000 that it is popularly referred to as "Tia (Aunt) Piedad".[7][11]
From 1988 to 2000, Monte de Piedad had between 33 and 35 branches in the entire Mexican republic, thirteen of which were in Mexico City.
Loans can be for any purpose but Monte de Piedad reports that many are to remodel houses, send children to college or to start a business.[2] There has also been a rise in people seeking loans to cover overdrafts of their credit cards.[12] However, many loans are for expenses related to back-to-school, vacations periods (esp. Holy Week) and January, after the Christmas holidays.[8][12][14]
Back to school loans occur in late August and early September. It represents the third busiest season for Monte de Piedad.[8][12] Back to school costs usually include, school supplies, uniforms, shoes, backpacks as well as textbooks and can include specialty costs such as supplies for physics and art classes.[8]
The busiest season for Monte de Piedad is in January, after the holidays, and second is the period around Holy Week vacations.[8] However, during every major holiday and vacation period, people can be seen lining up at Monte de Piedad offices to finance their celebrations before or after the fact.[14] Méndez Tapia, spokesman for Monte de Piedad, states that there is not a credit card mentality in Mexico, but pawning has long been part of the financial culture, especially for Mexicans with scarce resources.[8]
Monte de Piedad's interest rate on pawned items is four percent[clarification needed], with seventeen months to recover pawned items. The recovery rate is 96%.[8] For-profit pawn shops charge between twelve and twenty-four percent interest per month.[2] Despite the high recovery rate, every two weeks, furniture, antiques, jewelry, cars, clothing, domestic appliances and other goods which have not been reclaimed by their owners are sold off at public auction at the main office in the Zócalo in Mexico City.[3]
Reputation
In 1945, the Department of Appraisers was created with the role of training appraisers by specialty (jewelry, furniture, works of art, etc.).
However, the institution has had labor issues. Retirees and active employees of Monte de Piedad protested in 2007, stating that the institution lied to them stating that they were enrolled in IMSS when they were not. Protesters stated that they had not realized the violation for so long because the company provided private health insurance.[15] In subsequent legal action, the Junta Federal de Conciliación y Arbitraje (Federal Comisión of Conciliación and Arbitration) ruled against Monte de Piedad in a suit filed by about 350 employees of the firm.[16]
References
- ^ ISBN 1-56409-034-5.
- ^ a b c d e f g h i Notimex. "Dispone Monte de Piedad de 905 mdp para préstamos" (in Spanish). Torreón: El siglo de Torreón. Retrieved 2008-10-01.
- ^ ISBN 968-5437-29-7.
- ^ a b c "Lugares en Mexico Nacional Monte de Piedad". Archived from the original on May 17, 2008. Retrieved 2008-10-01.
- ^ Bustamante, Antonio (2008-04-17). "Incendio en el Monte de Piedad" (in Spanish). Mexico City: Noticieros Televisa. Retrieved 2008-10-01.
- ^ a b c d e f g h i j Leon Teutli Ficachi. "Nacional Monte de Piedad" (PDF). Archived from the original (PDF) on December 19, 2008. Retrieved 2008-10-01.
- ^ a b c d e f g h Ramirez Aldana, Ramon (April 2006). "Nacional Monte de Piedad, Permanencia y peretuidad La Institucion becentenarioa forma parte del patrimonico historic de Mexico". Macroeconomia (in Spanish). 152. Archived from the original on October 5, 2006. Retrieved 2008-10-01.
- ^ a b c d e f g Notimex (2008-09-02). "El Monte de Piedad prestará más de dos mil mdp en este regreso a clases" (in Spanish). Mexico City: Milenio. Retrieved 2008-10-01.[full citation needed]
- ^ "Nacional Monte de Piedad entrega donative para Beca Cholula". UDLA Informa (in Spanish). 38. May 2007. Archived from the original on May 5, 2008. Retrieved 2008-10-01.
- ^ a b "Dona Nacional Monte de Piedad recursos a la UDLAP" (in Spanish). Periodico Digital Puebla. 2008-07-14. Archived from the original on 2011-07-22. Retrieved 2008-10-01.
- ^ a b Salas Portillo, Carman (2008-08-06). "Convenio entre la Procuraduría Estatal y Nacional Monte de Piedad" (in Spanish). Chihuahua. Retrieved 2008-10-01.
- ^ a b c d e Notimex (2008-08-06). "Coloca Nacional Monte de Piedad créditos por 27 mdp en Yucatán Mérida" (in Spanish). Mérida: El Sendero de Peje. Retrieved 2008-10-01.
- ^ "Aumenta el número de pignorante en Nacional Monte de Piedad" (in Spanish). Mexico City: Queo Informa. 2008-01-07. Archived from the original on January 17, 2008. Retrieved 2008-10-01.
- ^ a b Thelma Alcanzara. "El Nacional Monte de Piedad". Archived from the original on October 26, 2008. Retrieved 2008-10-01.
- ^ Velasco, Elizabeth (2007-05-18). "Denuncian engaños del Nacional Monte de Piedad" (in Spanish). Mexico City: La Jornada. Retrieved 2008-10-01.
- ^ Mata Othón, Atalo (2008-03-01). "Acusan en el Monte de Piedad conductas patronales ilegales" (in Spanish). Mexico City: Excelsior Online. Archived from the original on September 15, 2008. Retrieved 2008-10-01.
Marie Eileen Francois, A Culture of Everyday Credit: Pawnbroking, Housekeeping, and Governance in Mexico City, 1750–1920. (University of Nebraska Press, 2006)