Pawnbrokers and pawnshops are getting into the forefront because of the proliferation of pawn shop-related shows on television. In a way, these shows have revived public interest in pawnshops and gave them a positive image. There have been several negative connotations about pawnshops in the past, but in truth, there are many credible pawnshops out there that have been operating legally and serving customers for a number of years. In the Greater New York City area for instance, Metropolitan Pawnbrokers have been serving satisfied clients for over 25 years. This article, brought to us by Metropolitan’s website cash4 jewelry now, aims to inform readers on the business of pawnshops.
Pawnbrokers have been serving the needs of Americans since the early 19th century, when there was a big surge of immigrants and rural people flocking the big cities of America to look for job opportunities. During those days, there was a growing demand for factory workers in urban areas, so many low-income wage earning families flocked to the cities. As a consequence, loans became essential. The pawnshop business then flourished, especially in New York City. It continued to flourish even through the Civil War years, to the Great Depression.
Today, pawnbrokers are encouraged to be active in the industry and to network with other pawnshops in the country. Industry organizations gather pawnbrokers to discuss business practices, provide resources and tools to strengthen their business, think of ways to enhance the professional image of the pawnshop industry, and review federal, state and local laws.
Today, there are many pawnshops in major cities in America –
There are more than 10,000 pawnshops around the country. Many trusted and reliable pawnshops give fair compensation for the personal property pawned by the customer. 85% of pawn shops are independently-owned small businesses or small regional chains. In fact, pawnshops are the most heavily regulated provider of consumer financial services, governed by more than 15 statutes and regulations.
People are drawn to pawnshops especially in economically-tough situations because they provide immediate relief for emergency cash needs. It helps them meet sudden financial needs that are not easily served by traditional financial institutions. This is especially helpful for the working class, who subsist from paycheck to paycheck. Pawnshops do not ask for many documents, just a government-issued identification card. They do not conduct credit checks, so that makes it easier for an ordinary employee to get money right away. The money loaned from a pawn shop also does not affect an individual’s credit standing.
How does a pawnshop work?
According to cash4 jewelry now, there are still some clients who do not seem to understand how to deal with pawnshops. Basically, people go to pawnshops, taking their personal items to surrender to the pawnshop. The surrendered personal item will be used by the pawnshop as collateral in exchange for a modest loan. What personal item can be brought to a pawnshop? In this case, it depends on what the specific pawnshop accepts as collateral. There are some pawnshops that accept anything from gold and silver coins, silverware, antique items, and many more.
However, according to cash4 jewelry now, there are some pawnshops that only accept jewelry items such as watches, rings, earrings, necklaces, gold pins or brooches, bracelets, and diamonds. Pawnshops are also governed by laws and regulations. Make sure that the pawnshop that you will transact with is duly licensed and complies with laws such as Truth in Lending Act, Equal Credit Opportunity Act, Patriot Act, Fair Credit Reporting Act, and local ordinances.
Once you have made the pawn agreement with the pawnbroker, make sure that they give you a pawn ticket that includes valuable information about the terms of agreement. It should include a description of the item/s pawned, the total amount lent, the rate of interest charged and the loan period. It should be duly signed by both parties.
Some pawnshops also accept the valuable item if the customer is selling them. Yes, pawnbrokers are also active buyers and sellers of valuable items. Some pawnshops are also retail stores where clients can purchase unique, pre-loved items. However, pawn and collateral loans are still the core of a pawnbroker’s business.
In choosing a pawnshop, you should select a reliable establishment that has been in the business for many years and with a stable and growing clientele. Metropolitan Pawnshop, with branches in Richmond Hill and Woodhaven New York, is well-known in the industry for its top-notch customer service and quality merchandise. According to cash4 jewelry now, they even provide mail service for those who are unable to physically go the shop. Called the Gold Kit shipping process, they provide free shipping kits for transporting the valuable item to be appraised and pawned. It is fully insured and contains one shipping box, customer inventory and receipt form, pre-addressed mailing label, and US Postal Service mail tracking label.