The municipality of Guadalajara now has 139 casas de empeño (pawn shops) compared with 77 in 2009, while Zapopan’s ratio is 112 to 51. Tlaquepaque has 37 and Tonala 56.
Nationwide there are now more than 5,000 privately-operated pawn shops, compared with 1,500 registered in January 2010.
Lack of federal regulation has meant that interest charged by the pawn shops can vary significantly from business to business.
Monthly interest rates can run from four percent a month to as much as 23 percent, according to Profeco, the federal Consumer Protection Agency.
Federal legislators are planning proposals that aim to bring the mushrooming pawn shop sector into line and provide the population with clear information about the rules under which they are obliged to operate.