MapMuse - Locate Pawn Shops or Pawnbrokers Near You

...the pawner of an item may purchase it back for the amount of the loan plus some agreed upon fee. If the time elapses without payment, the pawnbroker is allowed to sell the pledged item to recoup the amount of his loan, which may have only been a fraction of its actual market value. Pawnbrokers often have a large number of formerly pawned objects for sale at their place of business, called a pawnshop, whereby they may recoup money that had been loaned out on an item subsequently forfeited by a pawn customer.

Pawnbrokers can also purchase an item outright for cash with no repayment expected; these sometimes need to be held for up to 30 days by law before they can be offered for sale. Because of the risk to the pawnbroker of receiving stolen property, and the interests of the community in not allowing a legitimate businessman to act as a fence, laws to protect both these parties exist in some jurisdictions in the United States through the means of a hold placed on an item purchased by a pawnbroker. If a hold law is in effect, it will last up to approximately 30 days, depending on location.[citation needed] Such regulation is necessarily imperfect. Unscrupulous pawnbrokers buy goods from strangers with few questions, or turn a blind eye to certain customers, despite state laws in the United States that require a state issued ID card, Social Security number and physical description of a customer. Some local governments in the United States require a picture or thumbprint to be taken of the pawn customer. Few stolen items end up in pawnshops, though some claim that the nature of the business necessitates that some of the items will be stolen goods--many stolen items are just too common or too difficult for the authorities or even theft victims to identify and prove former ownership.[citation needed] According to the U.S. National Pawnbroker's Association, less than 0.1% of items that come through a pawn shop are stolen.

Items of monetary value

Pawnbrokers are often willing to take in many types of items including jewelry, electronics, musical instruments, firearms, vehicles and tools. Gold is considered an item that is never to be turned away, because even if the item is of relatively low value it can still be sold in bulk to a smelter to be sold for scrap gold.

When an item is pawned the pawn broker will typically loan out however much money the customer needs, provided that it does not exceed 1/3 of the resale value of the item. This amount will vary greatly on the history that an individual pawnbroker has with a customer.

History

Ancient world

In the west, pawnbroking existed in the ancient Greek and Roman Empires. Most contemporary Western law on the subject is derived from the Roman jurisprudence. As the empire spread its culture, pawnbroking went with it.

Likewise, in the East, the business model existed in China 3000 years ago no different than today, through the ages strictly regulated by Imperial or other authorities.

Middle Ages

In spite of early Roman Catholic Church prohibitions against charging interest on loans, there is some evidence that the Franciscans were permitted to begin the practice as an aid to the poor.[citation needed]

In England the pawnshop came in with William the Conqueror, with an Italian name, Lombard. In 1338 Edward III pawned his jewels to the Lombards to raise money for his war with France. King Henry V did much the same in 1415.

The Lombards were not a popular class and Henry VII Tudor harried them a good deal. In the very first year of James I Stuart an Act against Brokers was passed and remained on the statute-book until Queen Victoria had been on the throne thirty-five years. It was aimed at the many counterfeit brokers in London. This type of broker was evidently regarded as a fence.

[edit] Modern time

The Chinese conditions are decidedly favorable to a borrower. He may, as a rule, take three years to redeem his property, and he cannot be charged a higher rate than 3% per annum.[citation needed]

In the United Kingdom typical high street pawn interest rates vary between 5% to 12% gross per month and the average annual equivalent rate is 85%.[1]

The pawnbroker in the United States is generally subject to considerable legal restriction.[citation needed] Each state has its own regulations regarding pawnbrokers, generally regulating the amount of interest that is allowed to be charged on a collateral loan. In Massachusetts, a 2007 Boston Globe investigation suggested 10% monthly interest was not uncommon.[2]