Palatine denies jewelry shop’s request to offer pawn services

Arlington Heights has a few pawn shops. Naperville does, too.

But despite the state’s stringent regulations and the business owner’s spotless record, Palatine officials turned down a jewelry store’s request to offer collateral loans.

The council on Monday unanimously voted against allowing Palatine Jewelry and Watch Shoppe, 293 N. Northwest Highway, to provide pawning services. Pawning would allow customers to get a short-term loan in exchange for bringing in a watch or piece of jewelry as collateral.

The council discussed the issue at length last week, but tabled it to research whether the village could prohibit anyone younger than 21 from getting the loans.

Village attorney Bob Kenny said language in the federal Equal Opportunity Credit Act is open to interpretation, and he couldn’t guarantee Palatine could successfully defend itself against a challenge.

Owner Kelly Swisher, whose request to open a full-service pawnshop in Palatine was denied two years ago, said an 18-year-old who comes in with a large piece of jewelry is automatically suspect and he would never accept his business.

And Swisher had explained elaborate security measures at the Arlington Heights pawnshop he owns, including photographing the customer, scanning ID and reporting transactions to police.

But officials were clear about their concern over the image associated with pawn shops.

The exception was Councilman Jack Wagner, who voted for Swisher’s request at the committee level of Monday’s meeting.

“These are legitimized businesses now that aren’t all that different from a bank, in that they offer short-term collateral loans,” said Wagner, who ended up voting against the proposal to stand united with the council. “People are hurting, people need help. And this was an option.”

Swisher said afterward he expected the decision, but wasn’t pleased with it because he knows other Palatine businesses are illegally pawning.

For instance, Exquisite Jewelers, of which Councilman Aaron Del Mar owns 15 percent, was cited for pawning without a license just last month.

Between the council’s decision two years ago and again Monday night, Swisher said he’s considering closing his jewelry store all together after just a year in business.

“Arlington Heights has nothing negative to say about me, but I’m not good enough in Palatine,” he said.