WHAT IS A PAWN SHOP?

Pawn shops are some of the earliest recorded lending institutions.  In the late Middle Ages, the House of Lombard had a group of pawn shops and their sign was a group of three golden balls.  This image is still associated with pawnshops today.

When America was first settled, pawnbrokering or small collateralized loans were a common source of consumer credit.  Modern lending institutions have largely replaced this method of credit, but the pawn shop still persists, especially serving those who have a difficult time obtaining credit for needed cash.  When consumers need to borrow small sums of cash, traditional lenders are not willing to provide these types of loans.  The paperwork itself is cost prohibitive to them.  Boger City Pawn Shop is an excellent locally-owned resource for lending, selling, and buying.

We loan money on jewelry, electronics, musical instruments, equipment, just bring in your merchandise and one of our qualified brokers will give you a quick assessment of your goods.  At Boger City Pawn we try to get you what you need.

GOOD COLLATERAL:

Every time a pawn broker loans money on an item there is risk that the item will be forfeited and will have to be sold to the public. 
Therefore, we try to only offer loans against quality merchandise that holds value to the general public. 

The market determines what the value of an item truly is, coupled with actual local demand.  Each item is reviewed independently. Every transaction is a unique one. 
We do not offer or publish fixed loan values for types of collateral because product condition, purchase demand, market value, and capital reserves vary daily.

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

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. Pawnbroking imposes a discipline on the borrower that other lenders do not. Pawn loans do not cause people to overextend credit or go into bankruptcy.

How much should I expect for a loan on my item?

Loan amounts vary according to the value of the item.  There is no minimum dollar amount allowed on a pawn transaction but the maximum amount may be set by state pawn laws.  Your loan amount will be determined according to other factors as well such as demand and condition of the item.  Not all pawn stores are the same and price will vary. 

How do you determine the value of the item?

Pawn shops base the value of the item on current appraised value, its current condition and the ability to sell the item. Pawnbrokers use research tools that they have at their disposal to determine an item’s value and get you the most money for the item.  The appraisal process varies depending on the type of item—for example, jewelry is evaluated differently than a DVD player.  All items that pawn shops buy or pawn are tested to ensure that it works properly.


Do pawn customers enjoy the same protections under federal law that customers of other financial institutions enjoy?

No. Pawn transactions are the only type of consumer credit that requires reporting to local law enforcement agencies. In many states this reporting is required daily, and must include extremely sensitive personal information about the consumer (i.e. ethnicity, gender, address). Much of this information qualifies as “non-public personal information” under federal privacy law and is entitled to protection as such.

Do most pawn customers lose their merchandise?

On average, about 80 percent of all pawn loans are repaid. Repeat customers make up a majority of the business, similar to any other lending or retail establishment. Pawnbrokers establish relationships with their customers because they often borrow against the same items repeatedly. Pawnbrokers offer non-recourse loans, looking only to the item being pledged to recover their investment if the borrower chooses not to repay the loan. 

Are pawns rates excessive?

No. To provide their service, all lenders must charge rates commensurate with the size and duration of the loan, collateral, risk and recourse. Pawn transactions are small-dollar, short term loans with no hidden charges.

Are pawnshops regulated?

Yes, Pawnbrokers are governed by all of the major federal laws that apply to entities designed as financial institutions.  The federal laws that regulate the pawn industry are Patriot Act, Truth in Lending Act, Equal Credit Opportunity Act, as well as Data Privacy and Safeguard of consumer information as part of the Federal Trade Commission (FTC) Rules.  Pawn shops that deal in firearms are regulated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).  Pawn shops may also be Federal Firearms License holders.  States have regulated the pawn industry for decades, and most pawnbrokers are licensed and regulated by local authorities as well.