Owner believes his pawn shop was dropped by bank for selling guns

Aug. 10--A Spartanburg County pawn shop owner believes he is one of the latest victims of the federal government's attempts to control firearm sales.

Morris Williams, who owns Inman Gun and Pawn and its sister store in Lyman, said on July 28, he received a letter from his bank, SunTrust Banks Inc., informing him that the company had decided to "terminate" the checking accounts for both businesses.

The bank said the action was based on "a business decision" to end relationships with high-risk companies, specifically "payday lenders, pawn shops and dedicated check-cashers."

Williams, who opened the accounts in 2006, said he thinks SunTrust dropped his business as part of "Operation Choke Point." Under the initiative, which launched last year, the U.S. Department of Justice is working with the Federal Deposit Insurance Corp. and other agencies to pinch financial resources for industries deemed "high-risk" by the Obama administration, such as porn, drug paraphernalia and gun stores.

Williams' stores feature an array of items for sale, including guns, DVDs, guitars, lawn mowers, electronics and other equipment.

"I'm federally regulated," Williams said, "so there is a good chance (by stepping forward) I could be audited and reviewed all within legal boundaries. I'm nervous. But I think this is discrimination and decided I had to take a stand. This raises an important question about where (the federal government's reach) ends."

The original letter informed Williams that he had to close the accounts, or SunTrust would close them for him on Aug. 29. It would then "hold the proceeds" until he contacted the bank or mail him a check for any collected balance.

In the letter, SunTrust stated that Williams would be responsible for any overdrawn amount on the account and associated fees.

The bank told the business owner his check cards would be deactivated within 10 days of the letter and he would not have access to any services, including online banking, bill pay and overdraft protection once the accounts were closed.

SunTrust's letter also stated Williams may be prohibited from making deposits into his accounts other than cash after 10 days from the date of the letter.

"We were a good customer," Williams said. "They locked us out so quickly. I think it was done that way so we wouldn't have time (to speak publicly about the situation)."

After receiving the initial letter, Williams said he called a provided number for SunTrust's offices in Atlanta.

He reached a SunTrust employee who informed him that the bank's decision was based on the fact that Williams' pawn shop company was a "prohibitive business type."

"He said we didn't do anything wrong, but he wouldn't provide any details about why we were prohibitive," Williams said. "I requested an email address for the department that made the decision or the legal department, but he told me he could not provide that to anyone."

A SunTrust representative declined to comment. The company put out a statement on Friday in response to "certain account closures."

"SunTrust is pro-small business, and we are proud to serve more than 400,000 small business clients," the bank said in the statement. "SunTrust fully supports all of the rights that Americans are granted under the Constitution, and we continue to maintain banking relationships with licensed firearms dealers."

SunTrust said in the statement that after reviewing its banking relationships, it had decided to discontinue those with payday lenders, pawn shops and dedicated check-cashers "due to compliance requirements."

Williams said he has already opened new accounts with another bank.

He said he has had to juggle his daily duties at the store, with closing and opening the accounts, informing his vendors of the change in billing information and checking that each account is being used properly.

But Williams said he is most aggravated because SunTrust still has not given him a straight answer.

"I don't want to do business with anyone that doesn't want to do business with me," Williams said. "We've been contacted by at least three other banks that want our business. ... They're so vague about it. The vaguer they are, the more I know something stinks."

The pawn shop owners' longtime customers voiced their support for his position.

"(Williams) is a good, honest and decent businessman," said Inman resident Paul Edwards. "You won't find anyone better. He does a great job, as does his staff."

Williams said he is "all for" regulated firearm sales. Each customer that purchases a gun from his shop has to pass an FBI background check.

He fears the targeting of law-abiding gun owners and shops will create more problems.

"They call me prohibitive, and that word harkens back to Prohibition," he said. "They're going to do the same thing with guns that they did with alcohol and Al Capone. It will drive gun sales underground or it will allow the market to be dominated by large retailers like Cabela's, Bass Pro and Academy. Gun prices could skyrocket."

Williams said he has heard about a few other "mom and pop" gun dealers in the region that have had their SunTrust accounts dropped. He said he wants to encourage others to come forward and welcomed them to call him at his Inman store.

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