Nacional Monte de Piedad
Encyclopedia
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 established between 1774 and 1777 by Pedro Romero de Terreros
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. Today it is a fast-growing institution with over 200 branches all over Mexico and with plans to open a branch in every Mexican city.
The main office is located on the northwest corner of the Zocalo
on the corner of Monte de Piedad and 5 de Mayo streets. Despite having gone through considerable modifications, this once was part of the estate owned by Hernán Cortés
(1485–1547). In this area were the "Old Houses" of Moctezuma II
's father, Axayacatl
(1453?-1483). At the time of Cortes’ arrival, Moctezuma lived in the "New Houses" across what is now the main plaza where the National Palace
now stands. The dimensions of the original residence was so great, extending as far as modern-day Madero, Isabel la Católica, Tacuba and Monte de Piedad streets, that chronicler Francisco Cervantes de Salazar
once stated that it was not a palace, but rather a city itself. Other observers compared the complex to the Cretan
labyrinth
where the Minotaur
was imprisoned. The original structure had two floors and a series of smaller buildings that Cortes rented to traders. The main building used to house the Royal Tribunal and was the residence of two of the early viceroys of New Spain
. In 1615, it was divided into lots for sale.
The tezontle
stone façade of the current building dates from 1775, and at the peak above the main door is the coat of arms
of the Count of Regla. In the main doorway there is the coat of arms of Mexico and a bust of Pedro Romero de Terreros. The inside of the building has been completely modified except for a few details. The third floor was added in 1948. What had been Cortés’ accounting room while he was the Marquis of the Valley of Oaxaca, became a chapel and remained so until 1926. Since then, it has been a museum, housing painting by José de Páez from 1775, building decorations from the 18th and 19th centuries, cancellation stamps, paper money and certificates from 1880 and the building's original statues.
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.
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.
, Italy, in 1450 with the Orden de Menores Observantes de San Francisco. It had the aim of providing financial assistance to people in the form of no-interest loans. Instead of interest, borrowers were urged to make donations to the Church
. It spread first through Italy then in other parts of Europe. The first Monte de Piedad organization in Spain was founded in Madrid
, and from there the idea was transferred to New Spain
by Pedro Romero de Terreros, the Count of Santa María de Regla and Knight of Calatrava
.
Terreros (1710–1781) was born in Spain and arrived to Mexico in 1730, where he founded a number of enterprises including the Real del Monte silver mine in the modern-day state of Hidalgo. He founded the Sacro y Real Monte Pío de Animas between 1774 and 1777 with approval of the Spanish king Charles III
, authorizing him the use of part of the College of Saints Peter and Paul, where the main office is today. Terreros initially funded the project by donating 300,000 peso
s of gold. Like with other Monte de Piedad institutions, Terrenos’ foundation did not charge interest on the loans that it gave and also urged borrowers to make donations to Church institutions, especially the College of Saints Peter and Paul. He also urged borrowers to attend church and pray as a way to help them spiritually as well as financially.
Operations began in 1775 in the College of Saints Peter and Paul and where the current main office is now. In 1818, Viceroy Apodaca
ordered the evacuation of the building due to problems with the Independence movement
but this did not happen until 1821, when King Ferdinand VII confiscated Jesuit properties. The foundation moved to the Franciscan
Convent of Saint Bridget that was on Juárez Avenue and San Juan de Letrán Street (now Eje Central
). It moved again in 1836 to two houses on Empedradillo Street off a difference section of the Zocalo that were owned by the Duke of Monteleone, a descendent of Hernan Cortez. Some time after the College of Saints Peter and Paul moved to what is now the College of San Ildefonso, the Monte de Piedad bought the old college structure and its original home from the Duke of Monteleone in 1836.
After Independence
, the institution was sanctioned by the new government and gained its current name. In the beginning of the 19th century, mismanagement, loans forced by the government and political unrest caused serious financial problems for Monte de Piedad. However, before the end of the same century, the institution was so financially solvent that it began to issue its own money (called confidential certificates of deposit) worth up to six million pesos in 1881. In that same year, it opened its first branches in San Luis Potosí
, Oaxaca
and Puebla
, but these closed within a short time. In 1927, by presidential decree, Monte de Piedad was declared legally as a institution of "Beneficiencia Privada" (private charity).
The second has to do with the money the enterprise does earn. In the past decade, the institution has donated money to more than 1,500 charities, with an average total yearly donation of between 400 and 450 million Mexican pesos. Charities include Michui Mau, who work with burned children, the Mexican Red Cross, Teleton
as well as charities which work with autistic
children, children with cancer, people with AIDS
, victims of domestic violence, among others. In addition to these, the foundation also supports education in the way of scholarships. Monte de Piedad has been a primary sponsor of the "Beca (scholarship) Cholula" fund, first by funding one yearly 100% scholarship and now it sponsors ten students each year. This scholarship is designed for outstanding students from poor communities in Puebla
state such as San Andrés Cholula, San Pedro Cholula, Santa Isabel Cholula and San Gregorio Atzompa to attend UDLA
, a private university. So far it has donated a total of 900,000 pesos to the fund.
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. By January, 2008, that number had grown to 152 and there are plans to open a branch in every Mexican city. Right now the largest regional offices are in Mexico City, Monterrey
, Guadalajara
and Mérida
. The foundation expects to extend pawn loans to 750,000 families, or about 905 million pesos in 2008. This would represent a 58% increase nationwide from 2007, upping the already 33 million pawned items that Monte de Piedad warehouses every year. The institution also expects to reach the 22 million-loan mark in 2008. Similar growth and projections have been reported in the various regional offices such as those in Culiacán
and Mérida
.
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. There has also been a rise in people seeking loans to cover overdrafts of their credit cards. However, many loans are for expenses related to back-to-school, vacations periods (esp. Holy Week
) and January, after the Christmas
holidays.
Back to school loans occur in late August and early September. It represents the third busiest season for Monte de Piedad. 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.
The busiest season for Monte de Piedad is in January, after the holidays, and second is the period around Holy Week vacations. 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. 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.
Monte de Piedad's interest rate on pawned items is four percent, with seventeen months to recover pawned items. The recovery rate is 96%. For-profit pawn shops charge between twelve and twenty-four percent interest per month. 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.
who regularly gives them a high approval rating. The institution has also been certified by AENOR
. Legally speaking, the foundation works with legal authorities such as the Attorney General of the State of Chihuahua, signing agreements designed to thwart those who try to pawn stolen items.
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 did not realized the violation for so long because the company provided private health insurance. 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.
Pawnbroker
A pawnbroker is an individual or business that offers secured loans to people, with items of personal property used as collateral...
whose main office is located just off the Zócalo
Zócalo
The Zócalo is the main plaza or square in the heart of the historic center of Mexico City. The plaza used to be known simply as the "Main Square" or "Arms Square," and today its formal name is Plaza de la Constitución...
, or main plaza of Mexico City
Mexico City
Mexico City is the Federal District , capital of Mexico and seat of the federal powers of the Mexican Union. It is a federal entity within Mexico which is not part of any one of the 31 Mexican states but belongs to the federation as a whole...
. It was established between 1774 and 1777 by Pedro Romero de Terreros
Pedro Romero de Terreros
Pedro Romero de Terreros , the first Count of Regla, was a mining magnate and philanthropist in 18th century Mexico.-Early life:...
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. Today it is a fast-growing institution with over 200 branches all over Mexico and with plans to open a branch in every Mexican city.
Main office
Zócalo
The Zócalo is the main plaza or square in the heart of the historic center of Mexico City. The plaza used to be known simply as the "Main Square" or "Arms Square," and today its formal name is Plaza de la Constitución...
on the corner of Monte de Piedad and 5 de Mayo streets. Despite having gone through considerable modifications, this once was part of the estate owned by Hernán Cortés
Hernán Cortés
Hernán Cortés de Monroy y Pizarro, 1st Marquis of the Valley of Oaxaca was a Spanish Conquistador who led an expedition that caused the fall of the Aztec Empire and brought large portions of mainland Mexico under the rule of the King of Castile in the early 16th century...
(1485–1547). In this area were the "Old Houses" of Moctezuma II
Moctezuma II
Moctezuma , also known by a number of variant spellings including Montezuma, Moteuczoma, Motecuhzoma and referred to in full by early Nahuatl texts as Motecuhzoma Xocoyotzin, was the ninth tlatoani or ruler of Tenochtitlan, reigning from 1502 to 1520...
's father, Axayacatl
Axayacatl
Axayacatl was the sixth Aztec Emperor, a ruler of the Postclassic Mesoamerican Aztec Empire and city of Tenochtitlan, who reigned from 1469 to 1481.He is chiefly remembered for subjugating Tlatelolco, Tenochtitlan's sister city, in 1473....
(1453?-1483). At the time of Cortes’ arrival, Moctezuma lived in the "New Houses" across what is now the main plaza where the National Palace
National Palace (Mexico)
The National Palace, or Palacio Nacional in Spanish), was the seat of the federal executive in Mexico. It is located on Mexico City's main square, the Plaza de la Constitución...
now stands. The dimensions of the original residence was so great, extending as far as modern-day Madero, Isabel la Católica, Tacuba and Monte de Piedad streets, that chronicler Francisco Cervantes de Salazar
Francisco Cervantes de Salazar
Francisco Cervantes de Salazar was a Spanish man of letters.He was born and raised in Toledo. He first attended Alejo Venegas’s Grammar School and then studied at the University of Salamanca. In 1539 he accompanied Licenciado Pedro Giron to the Low Countries where he met, among other luminaries,...
once stated that it was not a palace, but rather a city itself. Other observers compared the complex to the Cretan
Crete
Crete is the largest and most populous of the Greek islands, the fifth largest island in the Mediterranean Sea, and one of the thirteen administrative regions of Greece. It forms a significant part of the economy and cultural heritage of Greece while retaining its own local cultural traits...
labyrinth
Labyrinth
In Greek mythology, the Labyrinth was an elaborate structure designed and built by the legendary artificer Daedalus for King Minos of Crete at Knossos...
where the Minotaur
Minotaur
In Greek mythology, the Minotaur , as the Greeks imagined him, was a creature with the head of a bull on the body of a man or, as described by Roman poet Ovid, "part man and part bull"...
was imprisoned. The original structure had two floors and a series of smaller buildings that Cortes rented to traders. The main building used to house the Royal Tribunal and was the residence of two of the early viceroys of New Spain
New Spain
New Spain, formally called the Viceroyalty of New Spain , was a viceroyalty of the Spanish colonial empire, comprising primarily territories in what was known then as 'América Septentrional' or North America. Its capital was Mexico City, formerly Tenochtitlan, capital of the Aztec Empire...
. In 1615, it was divided into lots for sale.
The tezontle
Tezontle
Tezontle is a porous, extrusive, igneous, volcanic rock used extensively in construction in Mexico. It is usually reddish in color.-Uses:Tezontle can be mixed with concrete to form lightweight concrete blocks, or mixed with cement to create stucco finishes. Tezontle is often used as the top...
stone façade of the current building dates from 1775, and at the peak above the main door is the coat of arms
Coat of arms
A coat of arms is a unique heraldic design on a shield or escutcheon or on a surcoat or tabard used to cover and protect armour and to identify the wearer. Thus the term is often stated as "coat-armour", because it was anciently displayed on the front of a coat of cloth...
of the Count of Regla. In the main doorway there is the coat of arms of Mexico and a bust of Pedro Romero de Terreros. The inside of the building has been completely modified except for a few details. The third floor was added in 1948. What had been Cortés’ accounting room while he was the Marquis of the Valley of Oaxaca, became a chapel and remained so until 1926. Since then, it has been a museum, housing painting by José de Páez from 1775, building decorations from the 18th and 19th centuries, cancellation stamps, paper money and certificates from 1880 and the building's original statues.
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.
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.
Origins and history
The Monte di Pietà movement began in PerugiaPerugia
Perugia is the capital city of the region of Umbria in central Italy, near the River Tiber, and the capital of the province of Perugia. The city is located about north of Rome. It covers a high hilltop and part of the valleys around the area....
, Italy, in 1450 with the Orden de Menores Observantes de San Francisco. It had the aim of providing financial assistance to people in the form of no-interest loans. Instead of interest, borrowers were urged to make donations to the Church
Roman Catholic Church
The Catholic Church, also known as the Roman Catholic Church, is the world's largest Christian church, with over a billion members. Led by the Pope, it defines its mission as spreading the gospel of Jesus Christ, administering the sacraments and exercising charity...
. It spread first through Italy then in other parts of Europe. The first Monte de Piedad organization in Spain was founded in Madrid
Madrid
Madrid is the capital and largest city of Spain. The population of the city is roughly 3.3 million and the entire population of the Madrid metropolitan area is calculated to be 6.271 million. It is the third largest city in the European Union, after London and Berlin, and its metropolitan...
, and from there the idea was transferred to New Spain
New Spain
New Spain, formally called the Viceroyalty of New Spain , was a viceroyalty of the Spanish colonial empire, comprising primarily territories in what was known then as 'América Septentrional' or North America. Its capital was Mexico City, formerly Tenochtitlan, capital of the Aztec Empire...
by Pedro Romero de Terreros, the Count of Santa María de Regla and Knight of Calatrava
Order of Calatrava
The Order of Calatrava was the first military order founded in Castile, but the second to receive papal approval. The papal bull confirming the Order of Calatrava as a Militia was given by Pope Alexander III on September 26, 1164.-Origins and Foundation:...
.
Terreros (1710–1781) was born in Spain and arrived to Mexico in 1730, where he founded a number of enterprises including the Real del Monte silver mine in the modern-day state of Hidalgo. He founded the Sacro y Real Monte Pío de Animas between 1774 and 1777 with approval of the Spanish king Charles III
Charles III of Spain
Charles III was the King of Spain and the Spanish Indies from 1759 to 1788. He was the eldest son of Philip V of Spain and his second wife, the Princess Elisabeth Farnese...
, authorizing him the use of part of the College of Saints Peter and Paul, where the main office is today. Terreros initially funded the project by donating 300,000 peso
Peso
The word peso was the name of a coin that originated in Spain and became of immense importance internationally...
s of gold. Like with other Monte de Piedad institutions, Terrenos’ foundation did not charge interest on the loans that it gave and also urged borrowers to make donations to Church institutions, especially the College of Saints Peter and Paul. He also urged borrowers to attend church and pray as a way to help them spiritually as well as financially.
Operations began in 1775 in the College of Saints Peter and Paul and where the current main office is now. In 1818, Viceroy Apodaca
Juan Ruiz de Apodaca, 1st Count of Venadito
Juan José Ruiz de Apodaca y Eliza Gastón de Iriarte López de Letona y Lasqueti, 1st Count of Venadito was a Spanish Basque naval officer and viceroy of New Spain from September 20, 1816 to July 5, 1821, during Mexico's War of Independence.-Military career:Ruiz de Apodaca was born in Cádiz into a...
ordered the evacuation of the building due to problems with the Independence movement
Mexican War of Independence
The Mexican War of Independence was an armed conflict between the people of Mexico and the Spanish colonial authorities which started on 16 September 1810. The movement, which became known as the Mexican War of Independence, was led by Mexican-born Spaniards, Mestizos and Amerindians who sought...
but this did not happen until 1821, when King Ferdinand VII confiscated Jesuit properties. The foundation moved to the Franciscan
Franciscan
Most Franciscans are members of Roman Catholic religious orders founded by Saint Francis of Assisi. Besides Roman Catholic communities, there are also Old Catholic, Anglican, Lutheran, ecumenical and Non-denominational Franciscan communities....
Convent of Saint Bridget that was on Juárez Avenue and San Juan de Letrán Street (now Eje Central
Eje Central
The Eje Central is part of a system of roadways built by Carlos Hank González to make Mexico City more automobile-friendly....
). It moved again in 1836 to two houses on Empedradillo Street off a difference section of the Zocalo that were owned by the Duke of Monteleone, a descendent of Hernan Cortez. Some time after the College of Saints Peter and Paul moved to what is now the College of San Ildefonso, the Monte de Piedad bought the old college structure and its original home from the Duke of Monteleone in 1836.
After Independence
Mexican War of Independence
The Mexican War of Independence was an armed conflict between the people of Mexico and the Spanish colonial authorities which started on 16 September 1810. The movement, which became known as the Mexican War of Independence, was led by Mexican-born Spaniards, Mestizos and Amerindians who sought...
, the institution was sanctioned by the new government and gained its current name. In the beginning of the 19th century, mismanagement, loans forced by the government and political unrest caused serious financial problems for Monte de Piedad. However, before the end of the same century, the institution was so financially solvent that it began to issue its own money (called confidential certificates of deposit) worth up to six million pesos in 1881. In that same year, it opened its first branches in San Luis Potosí
San Luis Potosí, San Luis Potosí
San Luis Potosí, commonly called SLP or simply San Luis, is the capital of, and most populous city in the Mexican state of the same name. The city lies at an elevation of 1,850 meters...
, Oaxaca
Oaxaca, Oaxaca
The city and municipality of Oaxaca de Juárez, or simply Oaxaca, is the capital and largest city of the Mexican state of the same name . It is located in the Centro District in the Central Valleys region of the state, in the foothills of the Sierra Madre at the base of the Cerro del Fortín...
and Puebla
Puebla, Puebla
The city and municipality of Puebla is the capital of the state of Puebla, and one of the five most important colonial cities in Mexico. Being a planned city, it is located to the east of Mexico City and west of Mexico's main port, Veracruz, on the main route between the two.The city was founded...
, but these closed within a short time. In 1927, by presidential decree, Monte de Piedad was declared legally as a institution of "Beneficiencia Privada" (private charity).
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. However, because the foundation lost significant money in its early years, it was decided in 1782 that it was necessary to charge fixed interest, decided by the governing board. 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. 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. However, it has since added some other financial services such as banking services, begun in 1878 and home equity loans, begun in 1997.The second has to do with the money the enterprise does earn. In the past decade, the institution has donated money to more than 1,500 charities, with an average total yearly donation of between 400 and 450 million Mexican pesos. Charities include Michui Mau, who work with burned children, the Mexican Red Cross, Teleton
Teletón (Mexico)
The Teletón in Mexico is an annual 24-plus-hour TV and radio broadcast, started in 1996, to raise money for children's rehabilitation centers for disabled children. Mexico's proposal was due to the initiative of Fernando Landeros...
as well as charities which work with autistic
Autism
Autism is a disorder of neural development characterized by impaired social interaction and communication, and by restricted and repetitive behavior. These signs all begin before a child is three years old. Autism affects information processing in the brain by altering how nerve cells and their...
children, children with cancer, people with AIDS
AIDS
Acquired immune deficiency syndrome or acquired immunodeficiency syndrome is a disease of the human immune system caused by the human immunodeficiency virus...
, victims of domestic violence, among others. In addition to these, the foundation also supports education in the way of scholarships. Monte de Piedad has been a primary sponsor of the "Beca (scholarship) Cholula" fund, first by funding one yearly 100% scholarship and now it sponsors ten students each year. This scholarship is designed for outstanding students from poor communities in Puebla
Puebla
Puebla officially Estado Libre y Soberano de Puebla is one of the 31 states which, with the Federal District, comprise the 32 Federal Entities of Mexico. It is divided in 217 municipalities and its capital city is Puebla....
state such as San Andrés Cholula, San Pedro Cholula, Santa Isabel Cholula and San Gregorio Atzompa to attend UDLA
Fundación Universidad de las Américas, Puebla
Universidad de las Américas Puebla , is a private university in Mexico. It is located in San Andrés Cholula, Puebla, a suburb of Puebla. The university is known for its programs in Arts and Humanities, Social sciences, Science and Engineering, and Business and Economics...
, a private university. So far it has donated a total of 900,000 pesos to the fund.
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".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. By January, 2008, that number had grown to 152 and there are plans to open a branch in every Mexican city. Right now the largest regional offices are in Mexico City, Monterrey
Monterrey
Monterrey , is the capital city of the northeastern state of Nuevo León in the country of Mexico. The city is anchor to the third-largest metropolitan area in Mexico and is ranked as the ninth-largest city in the nation. Monterrey serves as a commercial center in the north of the country and is the...
, Guadalajara
Guadalajara, Jalisco
Guadalajara is the capital of the Mexican state of Jalisco, and the seat of the municipality of Guadalajara. The city is located in the central region of Jalisco in the western-pacific area of Mexico. With a population of 1,564,514 it is Mexico's second most populous municipality...
and Mérida
Mérida, Yucatán
Mérida is the capital and largest city of the Mexican state of Yucatán and the Yucatán Peninsula. It is located in the northwest part of the state, about from the Gulf of Mexico coast...
. The foundation expects to extend pawn loans to 750,000 families, or about 905 million pesos in 2008. This would represent a 58% increase nationwide from 2007, upping the already 33 million pawned items that Monte de Piedad warehouses every year. The institution also expects to reach the 22 million-loan mark in 2008. Similar growth and projections have been reported in the various regional offices such as those in Culiacán
Culiacán
Culiacán is a city in northwestern Mexico, the largest city in the state of Sinaloa as well as its capital and capital of the municipality of Culiacán. With 675,773 inhabitants in the city , and 858,638 in the municipality, it is the largest city in the state of Sinaloa...
and Mérida
Mérida, Yucatán
Mérida is the capital and largest city of the Mexican state of Yucatán and the Yucatán Peninsula. It is located in the northwest part of the state, about from the Gulf of Mexico coast...
.
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. There has also been a rise in people seeking loans to cover overdrafts of their credit cards. However, many loans are for expenses related to back-to-school, vacations periods (esp. Holy Week
Holy Week
Holy Week in Christianity is the last week of Lent and the week before Easter...
) and January, after the Christmas
Christmas
Christmas or Christmas Day is an annual holiday generally celebrated on December 25 by billions of people around the world. It is a Christian feast that commemorates the birth of Jesus Christ, liturgically closing the Advent season and initiating the season of Christmastide, which lasts twelve days...
holidays.
Back to school loans occur in late August and early September. It represents the third busiest season for Monte de Piedad. 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.
The busiest season for Monte de Piedad is in January, after the holidays, and second is the period around Holy Week vacations. 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. 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.
Monte de Piedad's interest rate on pawned items is four percent, with seventeen months to recover pawned items. The recovery rate is 96%. For-profit pawn shops charge between twelve and twenty-four percent interest per month. 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
Auction
An auction is a process of buying and selling goods or services by offering them up for bid, taking bids, and then selling the item to the highest bidder...
at the main office in the Zócalo in Mexico City.
Reputation
In 1945, the Department of Appraisers was created with the role of training appraisers by specialty (jewelry, furniture, works of art, etc.). To maintain its reputation financially, Monte de Piedad submits its financial records to the outside scrutiny of Standard & Poor'sStandard & Poor's
Standard & Poor's is a United States-based financial services company. It is a division of The McGraw-Hill Companies that publishes financial research and analysis on stocks and bonds. It is well known for its stock-market indices, the US-based S&P 500, the Australian S&P/ASX 200, the Canadian...
who regularly gives them a high approval rating. The institution has also been certified by AENOR
Countries in International Organization for Standardization
Countries in International Organization for Standardization is a list and map of the 162 members in the International Organization for Standardization and their membership status within the organization.-List:-Map:-Notes:...
. Legally speaking, the foundation works with legal authorities such as the Attorney General of the State of Chihuahua, signing agreements designed to thwart those who try to pawn stolen items.
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
IMSS
IMSS may refer to:* Istituto e Museo di Storia della Scienza, Florence, Italy* Instituto Mexicano del Seguro Social, Mexico* Integrated Maritime Surveillance Systems, an integrated network of coast-line radars...
when they were not. Protesters stated that they did not realized the violation for so long because the company provided private health insurance. 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.