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 When entering a store, you are greeted by courteous, well-trained employees who are ready and willing to help.   We are not in the business of taking possession of property, but are lenders. 
 You pledge us property, we lend you money.    If you elect not to redeem the collateral, there is no credit consequence to the borrower.  
 When able to pay back the loan, according to the terms of our agreement, your merchandise is returned to you.    Unredeemed items are sold in the store, offering value-priced quality merchandise to shoppers. 

 

Q: How does a pawnbroker's business work?

A: Pawnbrokers lend money on items of value ranging from gold and diamond jewelry to musical instruments, televisions, tools, household items, etc. Since the customer is providing collateral, there is no need to do a credit check.

A typical loan is small, averaging $75 to $100. The interest rate charged by a pawnbroker is controlled by the state and varies widely across the nation. The pawnbroker is also required to hold the merchandise for a specific period of time, giving the borrower time to repay the loan. This hold period also varies widely but is typically in the 60-90 day time frame.

 

Q: Why would someone go to a pawnbroker to get a loan?

A: Pawnbrokers offer the consumer a quick, convenient and confidential way to borrow money. A short-term cash need can be met with no credit check or legal consequences if the loan is not repaid. A customer receives a percentage of the value the pawnbroker believes the collateral would bring in a sale. Pawn loans do not cause people to overextend credit or go into bankruptcy. Terms of the loan are printed on a pawn ticket that is given to the customer.

Q: Do most pawn customers lose their merchandise?

A: On average, about 80 percent of all loans are repaid. Repeat customers make up most of the business, similar to any other lending or retail establishment. Pawnbrokers know the vast majority of their customers because they often borrow against the same items over and over again.

Q: How can I be sure the merchandise I purchase at a pawnshop isn't stolen?

A: Less than half of one percent of all loans are identified as stolen goods. Thieves and robbers are a pawnbroker's worst enemy. Pawnbrokers work closely with the local law enforcement to catch and prosecute these perpetrators. Pawnbrokers are trained to look for stolen property to avoid these costly mistakes. It is not in the interest of the pawnbroker to accept potentially stolen merchandise.
 

Q: How are pawnbrokers regulated?

A: Most of the regulations have been initiated, sponsored and supported by the pawnbroking industry. At the state level, most pawnbrokers are licensed and regulated. At the federal level, they follow rules from the Bureau of Alcohol, Tobacco and Fire Arms (FFL license), and are regulated by the Federal Reserve Board (Truth In Lending Act, Regulation Z) in much the same way as banks. They are also required by the Patriot Act to check all customers against the Treasury Department's database of known terrorists.
 

Q: Are pawnshops' rates excessive?

A: To provide their service, all lenders must charge rates commensurate with the size and duration of the loan, collateral, risk and recourse. Pawnbroker loans are small-dollar, short-duration loans.

The item stands as the sole collateral and pawnbrokers are liable for the replacement value if something happens to the item while it is in their care. There are no hidden charges as with other lending institutions. On the other hand, a pawnbroker's cost basis is far greater. They incur costs for personnel training, appraisal, security, handling, storage, insurance and regulation not incurred by other lenders. Since 15-20 percent of a pawnbroker's customers elect not to repay their loans, they are forced to turn their "bad debt" into a retail center to recover their cost. Other lending institutions do not incur retail costs that can include additional floor space, gondolas, counters, personnel, advertising, shop lifters, retail competitive costs, and new merchandise costs to supplement the unredeemed goods.

Q: What is the foreclosure procedure?

A: If a customer defaults, the collateral becomes the property of the pawnbroker after the loan is overdue.

Q: Is pawn broking a "bad times" industry?

A: Pawnbrokers survive bad times if they make adjustments both at the retail and loan counters, but they do far better in good times. In hard times, customers move away to find employment, have less ability to repay their loans, and the value of all merchandise goes down. If goods sell for less, pawnbrokers must loan less thus earning a smaller return. In good times, customers have a greater ability to repay their loans and unredeemed merchandise sells faster because customers have more discretionary income.

Q: Are there firearms in pawnshops?

A: Some pawnbrokers are registered firearms dealers with permanent places of business. Pawnbrokers comply with all federal (ATF) regulations as well as furnishing local law enforcement with information regarding every transaction. No other dealer does this.

                                                

11817 E Alondra Blvd, Norwalk, CA 90650

 
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