There tends to be a kind of a stigma attached to the very title of “Pawn Shop”. Over the years though portrayals in TV, movies, news media, even friends, neighbors and family the pawn industry had gained a rather seedy reputation of being a lower end genre of store which fenced goods, sometimes even stolen merchandise. It simply wasn’t viewed by most as the kind of place the majority of society shopped.
This simply is not accurate.
Lets take a look at what MYTH vs. FACT when it comes to the Pawn Industry.
MYTH: Pawn shops buy and sell stolen goods.
FACT: Pawn shops abide by all local, state and federal laws. They are specially licensed and work with the police to prevent the selling of stolen merchandise. All transactions are accompanied by the seller presenting not only a valid photo ID, but also stamping the contract with a finger print. All merchandise received in is carefully catalogued for inventory purposes in cooperation with the local authorities. The police regularly compare serial numbers against items reported stolen, enabling the return of recovered merchandise to the rightful owner whenever possible.
MYTH: The clientele pawn shops attract are sleazy undesirables.
FACT: The typical loan customer who comes in and pawns an item is local to the store and just happens to need a cash loan in the short term for unexpected expenses. It isn’t usually a lack of employment or income that drives them it, its lack of savings. They are living check to check like most of America and occasionally those checks or pay period times run a few days short.
FACT: Pawn shop shoppers are bargain hunters! Why pay retail when gently loved merchandise, which seems new anyway, is often times available at hugely discounted rates?
MYTH: Pawn shops operate as they please, unregulated.
FACT: Pawn brokering is actually a heavily regulated business. In fact, at the local or state level, most pawn brokers are required to be licensed and regulated. At the federal level, they follow rules from the Bureau of Alcohol, Tobacco and Fire Arms (ATF) and are regulated by the Federal Reserve Board almost in the same ways as banks. They are also required by the Patriot Act to check all customers against the Treasury Department‘s database of known terrorists. Attempting to sell stolen goods to a pawn shop really isn’t a smart move!
MYTH: Pawn shops are the last resort for people with bad credit to get loans.
FACT: Customers find that loans from pawn shops are better than borrowing money from a family or friend. Plus, it’s quick, confidential and a customer gets part of the value the pawnbroker believes the collateral would bring in if sold. Sure, the loan to collateral ratio varies depending on the type of goods pledged, but a loan of 30-50 percent of the resale of the collateral is pretty common.
MYTH: Pawn shops hope you don’t come back for your pawned items so that they can sell them.
FACT: Pawn shops have limited space to store everything. They are gaining the interest on your loan, not to steal your belongings. All pawned items are carefully catalogued and tracked. Here at First Pawn we double check by calling you if you have not come back in for your items prior to considering it as inventory and a closed loan.
MYTH: People only pawn items when they don’t want them anymore and don’t really care if they get them back.
FACT: Pawn loans are far faster and more easily granted than trying to work with a bank based on credit. Pawn loans are the only credit product that have ever been available that give the borrower short term cash, obligation free.
MYTH: Pawn shops don’t really have good brand name merchandise, its all just used junk.
FACT: We live in a fast paced, high tech society. Upgrading is the standard. We all want to keep up with the Joneses. When the new iPhones come out, the newest gaming console, or the bigger better badder TV we are where the second to last model may end up, BUT we also have top end state of the art merchandise as well, we are ready for you to come in and up grade! Even diamonds are “upgradable”. Customers trade in their old “whatever-it-might-be” and it helps to significantly offset the cost of the newer shinier version with more bells and whistles. The fact is that shopping and upgrading at a First Pawn can save you huge amounts of money.
Tv shows featuring high end pawn shops such as Pawn Stars are helping to break the myths and present the reality of daily business in the pawn industry. It takes a vast amount of knowledge over a wide gamut of subjects, strict adherence to laws and regulations, a high level of personalized customer service and a careful inventory system to make a shop successful.
Here at First Pawn Jewelry and Loan, we take pride in our business. We appreciate our customers and want you to have the very best experience possible. If you are looking for something special or just need a little extra cash, come in today and talk with us. We are located at 886 Airport Rd. S. Naples, FL 34103. We can be reached at 239-434-7296. or by visiting www.firstpawn.com
Originally Published: http://firstpawn.com/blog/2016/01/22/popular-misconceptions-pawn-shops/