How does a pawn work?
A pawn is another term for a collateral loan. Pawnbrokers lend money on items of value ranging from gold and diamond jewelry, musical instruments, televisions, electronics, tools, household items, firearms, and more. Loans are based on the value of the collateral. When a customer pays back the loan, their merchandise is returned to them. A customer may also choose to surrender your collateral as payment in full. Liberty Pawn and Gold offers extensions/renewals (allowing you to extend your loan for another 30 days or to reissue your current loan if you pay towards your principal.)
Why would someone come to Liberty Pawn and Gold to get a loan?
Liberty offers 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. Liberty requires a minimum $10 loan amount allowed on a pawn transaction and offers loans as much as $100,000. Your loan amount will be determined according to other factors as well such as demand and condition of the item.
How do you determine the value of the item?
Liberty Pawn offers the value of the item on current appraised value, its current condition and the ability to sell the item. We use research tools that we have at our 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 WE TAKE ON LOAN OR BUY ARE TESTED TO ENSURE THAT THEY WORK PROPERLY.
How many loans can I have at one time?
A common misconception is that you are limited on the number of loans you can carry at one time. Every loan you have is held with separate collateral and for this reason does not impact another loan you have. Our advanced software system allows us to monitor a customer’s entire loan history amongst our 4 stores. This gives customers the benefit of accruing loan history with us. We may be willing to loan more on an item because a customer has exceptional loan history with us. Again, our relationships with our customers are very important to us and we do value our loyal customers.
Can someone else pickup my loan?
Liberty Pawn and Gold requires the signed original pawn ticket at the point of redemption. If someone other than the name of the original pledger is picking up the item, they must have signed written permission on the original pawn ticket stating the name of the person picking up the item. Any party other that the original pledger must have a valid picture identification to pick up any loan.
How can I be sure the merchandise I purchase at a pawn store isn’t stolen?
Less than one tenth of one percent of all pawned merchandise is identified as stolen goods. That’s because customers must provide positive identification and a complete description of the merchandise. This information is then daily transmitted to law enforcement, which dramatically decreases the likelihood that a thief would bring stolen merchandise to a pawn store.
Are pawn shops 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 Liberty Pawn and Gold is licensed and regulated by local authorities as well.
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. At Liberty Pawn and Gold we work very hard to establish relationships with our customers because they often borrow against the same items repeatedly.
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.