Frequently Asked Questions

Do most pawn customers lose their merchandise?

On average, about 85 percent of all pawn loans are repaid. Repeat customers make up a majority of the business, similar to any other lending or retail establishment. Pawnbrokers establish relationships with their customers because they often borrow against the same items repeatedly. Pawnbrokers offer non-recourse loans, looking only to the item being pledged to recover their investment if the borrower chooses not to repay the loan.

Do pawn customers enjoy the same protections under federal law that customers of other financial institutions enjoy?

No. Pawn transactions are the only type of consumer credit that requires reporting to local law enforcement agencies. In many states this reporting is required daily, and must include extremely sensitive personal information about the consumer (i.e. ethnicity, gender, address). Much of this information qualifies as “non-public personal information” under federal privacy law and is entitled to protection as such.

Are pawnshops regulated?

Yes, Pawnbrokers are governed by all of the major federal laws that apply to entities designed as financial institutions. The federal laws that regulate the pawn industry are Patriot Act, Truth in Lending Act, Equal Credit Opportunity Act, as well as Data Privacy and Safeguard of consumer information as part of the Federal Trade Commission (FTC) Rules.

How can I be sure the merchandise I purchase at a pawn store isn’t stolen?

Less than one tenth of one percent of all pawned merchandise is identified as stolen goods. That’s because customers must provide positive identification and a complete description of the merchandise. This information is then regularly transmitted to law enforcement, which dramatically decreases the likelihood that a thief would bring stolen merchandise to a pawn store.

How do you determine the value of the item?

Pawn shops base the value of the item on current appraised value, its current condition and the ability to sell the item. Pawnbrokers use research tools that they have at their disposal to determine an item’s value and get you the most money for the item. The appraisal process varies depending on the type of item—for example, jewelry is evaluated differently than a DVD player. All items that pawn shops buy or pawn are tested to ensure that it works properly.

How much should I expect for a loan on my item?

Loan amounts vary according to the value of the item. There is no minimum dollar amount allowed on a pawn transaction but the maximum amount may be set by state pawn laws. Your loan amount will be determined according to other factors as well such as demand and condition of the item. Not all pawn stores are the same and price will vary.

Why would someone go to a pawnbroker to get a loan?

Pawnbrokers offer the consumer a quick, convenient and confidential way to borrow money. A short-term cash need can be met with no credit check or legal consequences if the loan is not repaid. Pawnbroking imposes a discipline on the borrower that other lenders do not. Pawn loans do not cause people to overextend credit or go into bankruptcy.

How does a pawn work?

A pawn is another term for a collateral loan. Pawnbrokers lend money on items of value ranging from gold and diamond jewelry, musical instruments, televisions, electronics, tools, household items, firearms, and more. Some pawn shops may specialize in certain items. Loans are based on the value of the collateral. When a customer pays back the loan, their merchandise is returned to them. A customer may also choose to surrender your collateral as payment in full. Pawn shops may offer extensions/renewals (where permitted by state law).

What is pawning and how does it work?

Pawning is the process of offering a secured loan based on the value of your personal property which is used as collateral. There is a contracted period of time to redeem your item which is typically 30 days or more with an additional 30 day grace period. On your contracted due date you can either choose to pay your loan in full and redeem your item or extend your contract by paying the interest and fees due. If the item is not redeemed or extended by the end of the grace period then it is forfeited and is offered to the public for sale.

Is my item safe?

Your item is properly stored in either a safe or secured area. We’re fully insured to cover the loan value of our pawned items.

Will I get more money to sell or pawn my item?

When you pawn your item it is kept for an undetermined period of time due to your choice to extend your contract for as long as needed. We may loan $50 on an item worth $100 according to the used market values and in 6 months it might be worth $40. Due to constant changes in market values the item pawn could lose its loan value at any given time. When you sell your item it is held for up to 30 days and then it can be sold. It also depends on the item itself and our ability to sell the item. Selling a tube TV is not as easy as selling a flat screen TV.

How do you determine the value of my item?

The physical condition of the item is examined and the functionality of the item is thoroughly tested. Any there is cosmetic damage or if the item is broken then it is worth less. Also if the item is complete with its accessories or if it has extras such as remotes, games, the original packaging, etc., then it is worth more.

Do pawn shops really take in stolen items?

Less than .05% of items pawned or sold are reported stolen. We are in daily contact with our local law enforcement. Every transaction is forwarded to our local enforcement including the pawnee.

Is my personal information private?

We do not sell or share your information with anyone other than law enforcement. Your information is 100% confidential and is secure with us and our staff. We do understand the need for privacy and your information including your transactions are protected under the federal privacy law.

If I fail to redeem my pawn will my credit be affected?

We do not sell or share your information with anyone other than law enforcement. Your information is 100% confidential and is secure with us and our staff. We do understand the need for privacy and your information including your transactions are protected under the federal privacy law.

If I fail to redeem my pawn will my credit be affected?

No. Pawning does not affect your credit at all and pawn transactions are not reported to credit agencies. If you fail to repay your loan then the item simply becomes available to the public for sale. You may continue to bring us items for pawn as well. We do understand things happen and times do get tough. We are here to help our communities, not to judge or make your experience difficult.