LYNN – Despite a meeting between local pawnbrokers, city officials and members of the Division of Banks Tuesday, confusion still reigns as to what rate pawnshops will ultimately be able to charge.According to Gregory Short, Deputy Commissioner for the Division of Banks, the basis of the meeting was for pawnbrokers to explain why the rate should be set higher at 4 percent in Lynn versus other surrounding communities that have sunk to 3 percent.Short said while the commission does give careful consideration regarding the rate, the city is asking them to go above and beyond by accepting a 4 percent rate that averages out to an annual 48 percent APR.”We do take this seriously,” he said. “But no other towns or cities have been approved with a higher rate than 3 percent.”Last May, local pawnbrokers received notice that the 10 percent rate they had been charging for a number of years would be reduced to a significantly lower 3 percent because it was determined to be illegal.The number frustrated both City Councilors and pawnbrokers alike, spawning a back-and-forth heated debate over what the rate should be.Since threats to take action against the city were made by the Commissioner of Banks unless officials altered the rate to 3 percent, councilors came up with a compromise of 4 percent last May.Short said he hopes to resolve the longstanding issue in a timely manner so that action wouldn’t be taken against the city.”We want to avoid getting to that point and there hasn’t been a referral made to the AG,” he said. “But other cities and towns have had communication with the AG over the same issue.”Short said the city of Salem was denied a 10 percent rate and Peabody and Revere were approved for a 3 percent rate, which will eventually become an across the board rate for the entire state.Ward 3 City Councilor Darren Cyr previously voiced displeasure over the 3 percent rate and argued that pawnbrokers in the city simply could not make a living off of it.At Tuesday’s hearing, Cyr reiterated his opinion.”The average loan is $100 and the length is about four months, so what the pawnbroker actually makes is about $12 at the 3 percent rate,” he said. “So we came up with the 4 percent to try and make it fair and equitable, but that would still only raise the broker’s earnings to $14 over a four-month period.”Citing the 3 percent rate as a “tough pill to swallow”, Matthew Boccuzza, owner of Market Square Exchange Emporium at 32 Market Sq., said the lower rate is huge burden on his small business.”Three percent just doesn’t seem to jive with the times,” he said. “An ATM machine can charge a $2 fee for taking out money and that’s 10 percent right there, not 3 percent. So it’s hard to believe that other people look at us and think, oh yeah, they’re making a living, because we’re not.”In an attempt to prove a point as to how badly the citizens of Lynn are struggling to get by and how much residents rely on the pawnbrokers for loans, City Councilor At-large Daniel Cahill painted a grim picture of the neighborhood that has an average household income of just $35,000.”These are hardworking, blue-collar families that are living paycheck to paycheck, and the pawnbrokers assist the people of this city,” he said. “This is a poor community for the most part, and you can’t compare us to Marblehead, Peabody or Swampscott. This is an urban community.”With a national average of 15 percent and a 20 percent rate in New Hampshire, Cyr said the 1 percent increase from 3 to 4 percent was justified by the City Council out of fairness.”Reluctantly, the councilors went along with the lower rate, but we still don’t know who has the authority to set the rate – the councilors, the banking commission, or the state legislature,” he said. “It’s very confusing.”Short said public comments could be submitted up until 5 p.m. on May 13 on the matter, to which Cyr said he would immediately begin gathering financial records from the six pawnbrokers in the city with the help of the l