Need money? In Lille, there is always the Crédit Municipal to pawn your belongings

It is not really a bank, but a credit company of a particular kind: pawnbroking. Better known as the “Mont de Piété” in the 19th century^e and early 20th century^e centuries, Municipal Credit still exists. There are 17 of them in France. The North has 2, Roubaix and LillePas-de-Calais one, Boulogne-sur-Mer. We explain to you How does the one in Lille work?which wants to attract a wider audience. Even with projects!

Over 400 years of existence, one of the oldest in France

Do you know the old expressions “go to my aunt’s” or “deposit at the nail”? This refers to a practice that may seem outdated but which still exists, and is even trying to renew itself: the Municipal Credit, formerly the pawnshop.

The one in Lille dates from 1610, it is one of the first in France! The principle is simple: lend without interest to the poorest, from a “pledge”, an object deposited that can be recovered later.

Who is concerned ?

There is no such thing as a typical customer, since it is open to everyone, without proof of income, without invoices, or the obligation to be a Lille resident. “You just need an ID and proof of address, although non-Lille residents are accepted,” says Marc Lefèvre, director.

In case of doubt about the origin of the object, an invoice may be requested, “to combat theft, fraud, money laundering and the financing of terrorism. If there is any doubt, we do not conclude the loan”, says Marion Gautier, deputy mayor, vice-president of the advisory board of Crédit Municipal.

Numbers. The average loan is €800 in Lille, which has 4,300 clients. 10% of the files concern amounts less than €100; 88% are amounts of less than €3,000. Clients leave after 30 minutes, after an appraisal of their object, with 4/5 of the value of the object (jewelry) or 2/3 (others).

The interests. For loans from 0 to €100, there is no interest charge. For amounts under €3,000, it goes up to 13%. From €3,000 to €6,000, it is 11.79%. This means that for an amount paid of €1,000, to get your item back, you will have to pay the €1,000 borrowed plus €130.

Items. The majority concerns gold jewelry, “for 98% of our files”. We also find statues, musical instruments, paintings, bicycles, fine wines, stamps… Certain objects are refused: weapons, cars, fur coats…

The contract. It is 12 months, meaning that the customer has one year to recover their property, “except for obsolete items such as video consoles, in which case the contract is 6 months,” the director explains. But there is a lot of flexibility. “We can make a new contract every year, in which case we only have to pay the interest. Some items have been there for over 10 years! So we always wait a few more months to give the person time to contact us again.”

The sale. After a year, the object can be put up for auction. “We have an auction room on site, but since Covid, we have been going through the website interencheres.com, in virtual sales, which has allowed us to reach a wider audience geographically.” 95% of the objects deposited in Lille are recovered by their owners.

“The judicial sale is the failure of our mission. Our goal is to support people who have temporary financial difficulties. We can direct them to one of our partners to manage their finances, the Bartholomé Masurel association,” confides Marc Lefèvre.

If the auction is lower than the price lent, Crédit Municipal does not claim the difference from the customer. “But if the object was sold for more, we give him back the difference!” specifies Marion Gautier.

It should also be noted that all profits from Crédit Municipal (€73,000 in 2023 for example) are donated to social works chosen by the town hall.

Novelties

This year, there have been changes. The maximum given in cash has changed from €1,000 to €3,000. “Since April 2024, the repayment method can be spread out with installments,” the team reports.

The place has plans for the start of the 2024 school year. “Until now, access has been free without an appointment during opening hours. We want to create a counter by appointment, to personalize the welcome even more,” says the director.

Social loans will also be developed, as Marion Gautier specifies: “An offer for young people will soon see the light of day: those who enter professional life will be able to benefit from micro-credits”. The precise operation of this loan will be revealed in October 2024.

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