Pawn shops are on the rise due to the increasing need to raise money to pay bills in a tough economy. Pawn shops provide a quick and easy way of accessing cash, but they often unfairly get a bad reputation or are seen as a less desirable loan option.
However, pawn shop loans have rules and regulations that need to be adhered to under the law and are stringently applied. Many people are unaware of the pawn shop rules and regulations so we thought we would share these with you.
How do pawn shop rules and regulations work?
When you pawn an item at a pawn shop you must bring the item into the store for an appraisal. You will first need to prove that you are old enough to take out a pawn shop loan which requires you to show a government-issued photo ID card.
Most pawn shops accept a broad range of items including popular items such as jewelry, watches, designer goods, electronics and silverware, but there are some rules and regulations on what they can accept. If they deem your item acceptable and of significant value for a loan then they will give it a full appraisal to determine its value. Based on this valuation they will offer you a loan against the item and will hold the item as collateral until the loan is repaid in full.
The loan offered will be for between 25%-60% of its appraisal value and they will also add interest on top of this. The loan period can be for any length up to 120 days, but it can be paid off at any time during the term at no extra charge. Once the loan plus the interest is paid, the item used as collateral is returned.
During the loan term, the pawn shop retains ownership of the item and should ensure no damage comes to the item and can not sell it unless you breach the terms. If the loan isn’t repaid, the pawn shop can sell the item to recoup its costs. A 30-day grace period may apply for a missed payment during the loan term depending on the state laws.
Finding a New York pawn shop
If you need a pawn shop in the New York City area then GEM Pawnbrokers should be your first choice as we have a great reputation and a long history of serving this community for over 70 years. We are also one of the largest pawnbroking services in the New York area with 24 conveniently located stores.
We offer a fair loan process with items being stored securely in our private vaults, and we even offer loan extensions if required. Our loans are fast and efficient with some of the lowest collateral loan rates in the US. We also provide a fair and honest service and offer the highest value for items.
Come and visit us to see what our pawn shop loans can offer you.