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Now you can get a bank loan using your designer handbag as collateral

Yes Lady Finance Co., a Hong Kong loan company, accepts luxury designer handbags.

By Glamour Magazine Aug 14, 2013 4:42PM
Photo: Birkin bag // Getty Imagesby Danica Lo

Looking for a loan but don't have any real estate to put down as collateral? There's no need to fret. Just take a look inside your closet! Yes Lady Finance Co., a loan company based in Hong Kong, accepts luxury designer handbags — from Chanel, Gucci, Hermes, Louis Vuitton and occasionally Prada — as collateral on loans ranging from $200 to as high as $20,000 (for a Birkin). Loan officers work with experts from a luxury second-hand handbag store to assess a bag's authenticity — and will lend the owner up to 80 percent of its estimated valuation.

One client, 30-year-old Maggie Wong, told the Wall Street Journal she uses the loan service when she needs to pay for her child's tuition or daily expenses. She's put up a total of three bags in the last year to borrow $1,290. Another client, Angel Yam, says she received $1,550 for a Chanel handbag — but doesn't care if she defaults on the loan and loses her purse in the process.

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"I have too many idle handbags at home," she told the Journal. "I don't feel any loss when I take some of them as collateral for loans."Photo: Birkin bag // Getty ImagesOf course, the No. 1 question I have is: What happens when someone rocks up with a fake handbag and tries to land a $1,000 quickie? Yes Lady actually has a pretty tactful policy for dealing with counterfeits. "We don't tell them we know, we just say we can't approve the loan." Classy.

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What do you think of the idea of using fashion as collateral? I have a pretty decent collection of archive-worthy Margiela shoes and Comme des Garcons lumpy collection pieces. Anyone want to give me a loan to buy a new apartment? Bueller?

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Photo: Getty
19Comments
Aug 14, 2013 10:06PM
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Oh, like I have a high-end "bag" to put up for a loan in the first place! If you can afford a purse that costs as much as, if not more than, a month's rent and STILL need a loan, clearly your priorities aren't in alignment. My family is DROWNING in financial peril, we've scaled back and sold whatever we can, where ever we can. and we're still struggling for day to day basics.
So just this once, I'm 'trolling' a link to ask for help; I am surrounded by negativity and depression in my life, I don't need any more added on, please. If you don't like this post, then ignore it, move on.
http://www.gofundme.com/3xrris
Aug 14, 2013 9:42PM
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[quote]Another client, Angel Yam, says she received $1,550 for a Chanel handbag — but doesn't care if she defaults on the loan and loses her purse in the process.[/quote]

 

The age of materialism and apathy continues. Why save your money and buy what you really need, when you can spend it on a frivolous luxury buy of an expensive, disposable, brand name driven accessory that you can later use as collateral for a loan you won't pay back and go into more debt to buy yet another useless, mindless purchase. #ScrewedUpPriorities

Aug 14, 2013 9:33PM
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I would be willing to bet that this woman buys her Handbags using the Kids Child support money to buy them. She then has to get a loan to feed them. Was probably married to a rich man and took him for tons, Now she is squandering it. Kids food and education is suffering and she is buying a damn purse. What an idiot.
Aug 14, 2013 9:29PM
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Remember, these are the same women who walk around with their noses up as if they are better than everyone because of material items.  They'll do ANYTHING to land a man with a (probably borrowed) Range Rover.  Ghetto!!!! 

 

Money is not everything.  Having it doesn't mean you are cool, smart, or any better than anyone else.   So be kind, decent, generous, and caring.  Thanks.

Aug 14, 2013 9:21PM
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This is what Deregulation has led too. The Banks are now Pawn Shops and Loan Sharks. Pay Day loans and Pawning your possessions to pay your bills. Pretty soon they'll bring back the Debtors Prisons.
Aug 14, 2013 9:13PM
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What bothers me is the woman that said she puts them up for collateral to pay daily expenses and her childs tuition... SERIOUSLY?! Stop buying pointless expensive handbags and you can pay your bills without a loan!
Aug 14, 2013 9:12PM
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Wasn't Oprah wanting to look at one of those 38,000 dollar bags? That's more than a lot of people make in a year here in America.
Aug 14, 2013 9:09PM
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Except for Oprah... especially not ones bought in Switzerland...
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