The Crédit Municipal de Paris, better known by the nickname "My aunt", organizes from January to March 2019 an operation that consists in giving free to their owners objects that they had deposited as a pledge. An ancient tradition for this multi-century institution.
"My aunt", famous for its pledging loans to the Parisians, was created in 1637. But it is exactly one hundred years since it took the name of Crédit Municipal de Paris (CMP).
To commemorate this centenary, the CMP is implementing, from 2 January to 31 March 2019, a free trade operation, which consists in giving free to their owners objects that they had deposited as a pledge (hence the term "release" "). This is a very old tradition for this multi-secular institution, practiced about 30 times since 1789.
Historically, fight against wear and tear
The last free outlet dates back to 2012: the operation was intended to celebrate the 375th anniversary of the establishment, created by Théophraste Renaudot under the name Mont-de-Piété. Born in Italy in the fifteenth century, monts-of-piety (pawnshop in Italian, which should have been translated as "charitable credit") are pawn shops. Their goal is to combat usury, that is, the abusive interest rates. The oldest bank in the world, the Monte dei Paschi di Siena, was founded in 1472 as a mountain of pawns. The pawnshops were recognized by Pope Leo X on the 5this Lateran Council, in 1515.
In October 1918, pawnbrokers in France were turned into municipal credits with a decree authorizing them to open deposit accounts. Today, municipal credits are both public institutions and banking institutions. There are 48.
A brief history of the Crédit Municipal de Paris
The origin of the nickname "my aunt" is uncertain. The most often quoted is a historical anecdote: Ferdinando Filippo d'Orléans, son of King Louis Philippe, had to put the watch as a pawn to face his gambling debts. To explain the disappearance of his watch, he pretended to have it Forgot from my aunt ".
The operation of the pawnshop
To get credits from "my aunt", you must deposit one or more items. We then receive a sum representing between 50% and 60% of the estimated value of the object deposited. The annual interest rate depends on the amount borrowed. It grows by 4% for amounts less than or equal to € 300, up to 8.45% for loans between € 1,000 and € 6,000. For higher amounts, the rate is less than 5.80% in order to remain competitive with the competition "Says Xavier Giorgi, deputy director general of the institution.
If the borrower has not repaid a year after the start of the loan, two options are possible: in 90% of the cases, the contract is renewed for one year. Otherwise, the deposited object is placed at auction. If its sales price exceeds the amount due, the difference (the bonus) is paid to the borrower. In 2017, borrowers received 3.7 million euros in bonuses.
An institution with a "social vocation"
The transaction for the first quarter of 2019 concerns only borrowers whose outstanding loans (excluding interest) were less than or equal to € 100 on October 31, 2018. They can take back their (their) objects for free. This operation corresponds to " the affirmed social vocation Of the CMP, underlines Xavier Giorgi.
Every day, almost 600 people go to the CMP for a pawnshop. The typical client of "my aunt" is a Francilienne: the 83% of the clients are women and 93% live in Île-de-France. Gold jewelery accounts for 95% of objects pledged. Furthermore, nine out of ten people recover their object.
Overall, 1,700 people are potentially affected by the liquidation operation, for a total outstanding of € 120,000. About 10% of these people have benefited from this version for the time being. The objects involved in the release are different: " small art objects such as statues, bicycles, jewelery, silverware, etc. "Says Xavier Giorgi.
The Paris Partage brochure
The pledge loans are partially financed by the Paris Partage book, launched at the end of November. It allows you to place up to € 50,000, with a gross interest rate (before the payment of the obligatory levies) of 1% to the year. Investors decide to allocate at least 25% of interest to one or more associations.
The three CMP partner structures are Emmaus Coup de Main (professional integration and accommodation), the Gift Agency in Nature (collection of unsold products for non-food benefits) and the Siel Bleu Foundation (support for fragile people through Physical activity).
For the Paris Partage brochure, the CMP has obtained a Finansol label, as regards the investment of savings in pledge loans and the donation of part of the interest, each of these two criteria is sufficient for the attribution of the label. At the end of December 2018, the total amount of this brochure was around € 300,000. Half of the savers already had a savings account with the CMP.