I haven't posted anything in a while because I left the company I worked for, but after some personal issues prevented me from working for the company I left for I'm now back at the pawn shop as an Assistant Manager. I'm glad for the opportunity to reenter the pawn business and look forward to the coming experiences as well as contributing once again to this blog.
While working a couple of days ago, a customer raised a very legitimate concern that I often overlook. This customer was putting a loan under his name for a friend who had forgotten his ID. It was obvious to me that this customer had not taken out a loan at a pawn shop before because he was very skeptical and had a lot of good questions for me. One of which I would like to address in this post.
This customer, we'll call him Bill, asked if we would report it to the credit bureaus if his friend let the loan expire without making any payments. When I told him that the loan wouldn't affect his credit rating whatsoever, he was still skeptical and didn't fully believe me.
This is the point I made with Bill. A pawn shop, though considered a financial institution, won't (I haven't heard of a pawn shop that would, anyway) report to a person's credit on a defaulted loan because we already have the collateral for the loan in our possession. There's no reason for us to report it when it doesn't cause us to lose money. In other words, though we may be out a certain amount of money for the time being, we can sell the collateral and make the money back and (hopefully) even make a decent profit.
This is another reason why I would argue that receiving a collateral loan at a pawn shop is much less risky than a check cashing or payday advance store. If you were to let a payday advance go delinquent, the store would most likely charge you extra as well as having a hugely negative impact on your credit rating. They can also be sent to collections and quite possibly turn into a judgement on your report or lead to garnishment of your wages.
Saturday, December 13, 2008
Friday, March 14, 2008
Have a Question? Ask Here!
I was recently reviewing my Google Analytics report when I noticed a couple of the Google searches my visitors found this blog through. One was "can a pawn shop sell my stuff" and the other was "items you can pawn". This has led me to the decision of creating a new section, called Q & A. I want anyone that has any questions to ask them in a comment to this post, and I will answer them as soon as possible. If you would rather email me, I would be more than happy to receive questions at pawnlife@live.com.
To start this off, I'll answer the questions that led me to this. A pawn shop in the state of Nebraska (and I would assume most other states, but that's something I'll have to research) cannot sell your items as long as they are an active loan. What I mean by that is at our shop a loan is four months (this will differ by state, more to come on that). During the first four months, we are bound by law to keep it in our back room without telling possible interested customers we have it, let alone selling it. Only when the loan expires can we set the item out for sell. Also, if you're getting close to that due date and need some extra time, we can accept a monthly interest charge as a payment that will extend the loan out for another month from it's current due date. Here in Nebraska, you can do that as many times as necessary without the risk of your item(s) being sold. I would suggest calling the shop you have the loan through to ask what their policy is.
As far as items you can pawn, it really depends on the shop. Generally, pawn shops will accept jewelry (gold and/or diamond jewelry only in most cases), car audio, home audio, tools, televisions, game systems, dvds, video games, and firearms. Again, this is just a generalization and may not apply to all pawn shops in your area. A lot of stores will have an age limit on the electronics they accept as well as certain types/brands of items they will not take in. You would be best off figuring out what you have that you could part with for a little while then calling the pawn shops in your area to ask if they would accept them on loan. This would also be an opportune time to ask what interest rate they charge and the length of their loans.
To start this off, I'll answer the questions that led me to this. A pawn shop in the state of Nebraska (and I would assume most other states, but that's something I'll have to research) cannot sell your items as long as they are an active loan. What I mean by that is at our shop a loan is four months (this will differ by state, more to come on that). During the first four months, we are bound by law to keep it in our back room without telling possible interested customers we have it, let alone selling it. Only when the loan expires can we set the item out for sell. Also, if you're getting close to that due date and need some extra time, we can accept a monthly interest charge as a payment that will extend the loan out for another month from it's current due date. Here in Nebraska, you can do that as many times as necessary without the risk of your item(s) being sold. I would suggest calling the shop you have the loan through to ask what their policy is.
As far as items you can pawn, it really depends on the shop. Generally, pawn shops will accept jewelry (gold and/or diamond jewelry only in most cases), car audio, home audio, tools, televisions, game systems, dvds, video games, and firearms. Again, this is just a generalization and may not apply to all pawn shops in your area. A lot of stores will have an age limit on the electronics they accept as well as certain types/brands of items they will not take in. You would be best off figuring out what you have that you could part with for a little while then calling the pawn shops in your area to ask if they would accept them on loan. This would also be an opportune time to ask what interest rate they charge and the length of their loans.
Pawn Shop Break In!
This happened just a few weeks ago. I do a lot of online work (check us out on ebay, amazon and half under seller name CapCityOutlet) for the shop which involves a lot of packing and shipping items that were sold. It was during one such occasion that I was in the back room (where I keep the shipping boxes) that I heard a strange noise coming from the back door. It sounded like a scraping sound, and at first I thought it might be some stray animal scratching at the metal door. I stood very still for a while (heart racing like mad) and heard footsteps, then a very loud bang. My mind was working in overdrive thinking of what I was going to do to apprehend the thief. After about 45 seconds, I ran full throttle out to the front room, flung open the door and yelled at my manager, "Hey, come here RIGHT NOW!". I'm usually a very calm person so my manager didn't ask any questions, just hurried to the back room where we stood by the door for a while. Another 30 seconds later there was another bang, followed shortly by another. I made a move toward the door, then thought against it (after all, the customers' items are stored in the back and I wouldn't want to risk them being stolen or damaged).
My manager and I both stood there, stiff as boards, trying to figure out what to do. The person outside started to speak, but it was too muffled for us to make out what he was saying. Finally, I decided to confront the person. I walked out front, past my confused employee, and out to my car. From there, I drove around the shopping center and just far enough to see down the back alley. By this time, the perpetrator was walking away from the back door of the shop and towards me. It was a very cold day and the guy was wearing a scarf around his mouth. I sized him up and figured that as long as he didn't have any weapons, I could take him. I drove up to him, rolled down my window and then recognized the familiar face. It was an employee of the local electric company that had been to the shop for the first time the day before, wanting to read our meters. Turns out he missed a meter and was coming back to get the reading, not knowing that he would have been a lot better off just walking through the front doors. Three years of working at a pawn shop, and that's the closest I've come to being robbed.
My manager and I both stood there, stiff as boards, trying to figure out what to do. The person outside started to speak, but it was too muffled for us to make out what he was saying. Finally, I decided to confront the person. I walked out front, past my confused employee, and out to my car. From there, I drove around the shopping center and just far enough to see down the back alley. By this time, the perpetrator was walking away from the back door of the shop and towards me. It was a very cold day and the guy was wearing a scarf around his mouth. I sized him up and figured that as long as he didn't have any weapons, I could take him. I drove up to him, rolled down my window and then recognized the familiar face. It was an employee of the local electric company that had been to the shop for the first time the day before, wanting to read our meters. Turns out he missed a meter and was coming back to get the reading, not knowing that he would have been a lot better off just walking through the front doors. Three years of working at a pawn shop, and that's the closest I've come to being robbed.
Friday, March 7, 2008
Queen Isabella: Would America Exist If Not For Pawn Shops?
I don't have as much time tonight, so I'm going to make this one short and sweet. A fun fact that most people probably weren't taught in their history lessons is that Queen Isabella of Spain pawned her crown to help finance Christopher Columbus' voyage that led to the discovery of the Americas. This is has been debated, and some people are saying that she didn't actually end up pawning the crown, but she was at least documented as saying,
"I will assume the undertaking for my crown of Castille, and am ready to pawn my jewels to defray the expenses of it, if the funds in the treasure shall be found inadequate."
"I will assume the undertaking for my crown of Castille, and am ready to pawn my jewels to defray the expenses of it, if the funds in the treasure shall be found inadequate."
Thursday, March 6, 2008
A Look into the Future
I'm hoping that this blog catches a lot of interest, but I'll need help to make that happen. If any pawnbroker, or just a pawn shop supporter, wants to contribute an article (or more) I am open to suggestions. I can be reached via Email at pawnlife@live.com. Please email me with a copy of your first article (or general suggestions) so I can review it and possibly add you as an author. If anyone wishes to exchange articles, please email me at that address as well.
There are a few Categories I have planned at the moment to include:
The Truth About Pawn Shops- A general category that explains how pawn shops differ from the common stereotypes. Also, an alternative viewpoint for those in doubt of the legitimacy of the pawn business.
Interesting Happenings- Crazy experiences people have had during a visit/day at a pawn shop. This category will be a controlled category with posts being reviewed by me and published upon my approval.
Tips for Pawn Shop Customers (Coming Soon!)- Ways customers can approach their local pawnbrokers to maximize their loan values as well as tips on negotiating prices.
Tips for Pawnbrokers (Coming Soon!)- Things pawnbrokers can do to increase productivity and customer relations.
The History of the Pawn Shop (Coming Soon!)- Pretty much what the title says. The pawn shop is one of the oldest businesses around today and is rich in tradition and history.
There are a few Categories I have planned at the moment to include:
The Truth About Pawn Shops- A general category that explains how pawn shops differ from the common stereotypes. Also, an alternative viewpoint for those in doubt of the legitimacy of the pawn business.
Interesting Happenings- Crazy experiences people have had during a visit/day at a pawn shop. This category will be a controlled category with posts being reviewed by me and published upon my approval.
Tips for Pawn Shop Customers (Coming Soon!)- Ways customers can approach their local pawnbrokers to maximize their loan values as well as tips on negotiating prices.
Tips for Pawnbrokers (Coming Soon!)- Things pawnbrokers can do to increase productivity and customer relations.
The History of the Pawn Shop (Coming Soon!)- Pretty much what the title says. The pawn shop is one of the oldest businesses around today and is rich in tradition and history.
My First Day
I'm going to be stepping away from the informative side of my posts for this one. There are a lot of exciting experiences that happen at a pawn shop, and I want to share some of them with you. I don't want to paint the picture that pawn shops are uneventful and boring. Although most of our customer base are people just like you and me, we do have a tendency to attract some of the more "interesting" clientele (then again, so does Wal-Mart).
I'll never forget my first day of work at the pawn shop. I had the same mindset as the majority of the population in that pawn shops were run-down, sleazy places that people went to get their next "fix" or take the stuff they just stole out of the car sitting down the block. I was soon impressed with the professionalism of the staff and the organization of the store along with the cleanliness and bright displays. It was my first time in a pawn shop so I wasn't exactly sure what I should expect.
The day was going by quick, all I was really learning was that there was a lot to learn. My manager at the time had me start off "pulling" forfeited items to clean then hand them off to somebody to price and put out for sell. It was during one of these trips to the back room that some excitement occurred out front. The manager came back and yelled at me, "grab the towels!". I stood there looking at him thinking, how in the hell am I supposed to know where the towels are?
After a few seconds of standing there, I think he realized that I wasn't going anywhere and decided to brush past me and get the towels himself. I walked out front, thinking how strange that last exchange was when I noticed something was wrong. There was a guy laying on the floor at the front loan counter with a pool of blood beside him. My good friend (the assistant manager) was on the phone talking hurriedly to someone, explaining what had happened. Five minutes later, there were two firetrucks and an ambulance parked outside of the shop, all with lights flashing.
Turns out that this guy was extremely drunk and passed out right at the counter, managing to hit his head twice on his way to the floor. Of course, he was fine (wouldn't feel so good about relating this story if he wasn't).
Why did I continue working for the shop after that? Well, I thought something exciting like that might happen on a regular basis but alas, I haven't witnessed a customer passing out since that day.
I'll never forget my first day of work at the pawn shop. I had the same mindset as the majority of the population in that pawn shops were run-down, sleazy places that people went to get their next "fix" or take the stuff they just stole out of the car sitting down the block. I was soon impressed with the professionalism of the staff and the organization of the store along with the cleanliness and bright displays. It was my first time in a pawn shop so I wasn't exactly sure what I should expect.
The day was going by quick, all I was really learning was that there was a lot to learn. My manager at the time had me start off "pulling" forfeited items to clean then hand them off to somebody to price and put out for sell. It was during one of these trips to the back room that some excitement occurred out front. The manager came back and yelled at me, "grab the towels!". I stood there looking at him thinking, how in the hell am I supposed to know where the towels are?
After a few seconds of standing there, I think he realized that I wasn't going anywhere and decided to brush past me and get the towels himself. I walked out front, thinking how strange that last exchange was when I noticed something was wrong. There was a guy laying on the floor at the front loan counter with a pool of blood beside him. My good friend (the assistant manager) was on the phone talking hurriedly to someone, explaining what had happened. Five minutes later, there were two firetrucks and an ambulance parked outside of the shop, all with lights flashing.
Turns out that this guy was extremely drunk and passed out right at the counter, managing to hit his head twice on his way to the floor. Of course, he was fine (wouldn't feel so good about relating this story if he wasn't).
Why did I continue working for the shop after that? Well, I thought something exciting like that might happen on a regular basis but alas, I haven't witnessed a customer passing out since that day.
Pawn Shops and the Police
I recently read another blogger's post about going pawnshopping in his area with a friend of his. He said that when they pulled up to the first shop, there was a drug bust going on right outside. He suggested that this was typical pawn shop activity and that he was not surprised at all. He went on to say something about how the only reasonably priced items he saw that day were the guns, which were "probably used in a murder".
Those of you who have sold firearms for a business or even bought from a business should know how wrong that statement is. Pawn shops share a close relationship with the ATF, just like any other firearms dealer. After going through a week-long, annual inspection conducted by them there should be no doubt in anyone's mind that the firearms have a clean history and have not been used in any major crimes.
I also hear a lot of people talk about how everything in a pawn shop is most likely stolen. This is far from the truth, as most local governments have a "banned list" of people that have been convicted of theft in the past. These lists are distributed among the pawn shops in the area and the penalties for doing business with them are steep.
There are numerous programs in place across the country to help people recover their stolen items. In Nebraska, where my shop operates, we are required to take down a list of items we take in, along with the pledger's fingerprint and serial numbers for the items they bring in. Every morning we mail the previous day's pawn forms with all of this information to the crime analysis lab. Most state's will have a program like this, or at least similar to it.
As pawnbrokers, we cannot stress enough the importance of keeping a record of serial numbers for the items you own. If something is stolen from you and finds it's way to a pawn shop, reporting the serial number almost always ensures the item is found by the police and proper procedure can take place to get it back in your possession. I've found a company based out of Kansas that has a program in place that I think should be adopted everywhere. Check it out, Record It & Report It.
Those of you who have sold firearms for a business or even bought from a business should know how wrong that statement is. Pawn shops share a close relationship with the ATF, just like any other firearms dealer. After going through a week-long, annual inspection conducted by them there should be no doubt in anyone's mind that the firearms have a clean history and have not been used in any major crimes.
I also hear a lot of people talk about how everything in a pawn shop is most likely stolen. This is far from the truth, as most local governments have a "banned list" of people that have been convicted of theft in the past. These lists are distributed among the pawn shops in the area and the penalties for doing business with them are steep.
There are numerous programs in place across the country to help people recover their stolen items. In Nebraska, where my shop operates, we are required to take down a list of items we take in, along with the pledger's fingerprint and serial numbers for the items they bring in. Every morning we mail the previous day's pawn forms with all of this information to the crime analysis lab. Most state's will have a program like this, or at least similar to it.
As pawnbrokers, we cannot stress enough the importance of keeping a record of serial numbers for the items you own. If something is stolen from you and finds it's way to a pawn shop, reporting the serial number almost always ensures the item is found by the police and proper procedure can take place to get it back in your possession. I've found a company based out of Kansas that has a program in place that I think should be adopted everywhere. Check it out, Record It & Report It.
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