Pawn Shops Work With The Police
Let’s say you bring in a DVD player. If the pawnbroker accepts it, you will receive a pawn ticket. The pawn shop keeps a copy of this ticket and a third copy will be sent to the local police. The pawn ticket will include very specific information about the DVD player: brand name, serial number, model number, size, color, type, and a detailed description. This way, the police can check the item against their records of stolen property.
The pawnbroker will then record your personal information: your name, address, date of birth; and your valid, government-issued picture ID number will be recorded as well. In some states, you may be fingerprinted and your physical appearance (height, weight, and ethnicity) will also be written down. All this information is given to the police. In this way, pawn shops really do work in partnership with law enforcement, in an attempt to prevent the sale or purchase of stolen property. As a result, less than one-tenth of 1% of items received by pawn shops are stolen merchandise.
Finally, the pawnbroker will record the date of the pawn, the maturity date of the pawn transaction, the amount due for the item, the rate per loan period, and the interest charge for the item. If you are buying something from the store, the broker will keep the original information about the item and will take down your personal information, date of sale, and dollar amount of the transaction.
Note: All pawn shops are required by law to report all transactions to law enforcement.
No Background Checks
The good news is that when you pawn something, there are no credit checks, and no one asks about your bank accounts or whether or not you pay your bills. There are no calls to your employer. In fact, you don’t even have to be holding down a job. There are no background checks, either. All you need is a valid, government-issued picture ID, and a legally-owned item of value that you want to pawn. You are getting a “secured loan.” Your pawned item is the security on the loan, and that’s all the pawnbroker really needs from you.
Interest And Loan Period
Interest on your loan will vary by state, but it’s generally between 20% and 25%. Let’s say that you pawn your leather jacket and get $100 cash for it. In your state, perhaps the interest rate is set at 20%. You will owe the pawnbroker $120 at the end of the loan period. Loan periods also vary by state but are usually between one and four months. Let’s say your loan period is two months. At the end of the period, you have three choices:
Pay In Full Plus Interest
You can pay the broker $120 and get your jacket back.