Pawnshops sign of worsening financial circumstances

The increasing number of pawnshops across Mongolia bears witness to the deteriorating living conditions that everyday Mongolians have to grapple with. L. Amgalan, who is a specialist at the Authority for Fair Competition and Consumer Protection (AFCCP), unveiled shocking figures of mortgage companies in Ulaanbaatar.

He said there are an estimated 997 pawnshops in the capital, adding that the AFCCP carried out an inspection of 16 pawnshops in 2021, only two of which proved that they complied with the regulations set during the COVID-19 pandemic that states the interest rate should be at three percent, as the rest set high-interest rates.

B. Temuulen, who was a victim of pawnshops, said the big number of pawnshops in Mongolia amazes him.

He explained that relying on borrowing and dealing with pawnshops will have a bad impact on people, as it would turn them into lazy people.