Pawnbrokers have supplied money in exchange for jewelry and valuable items for several years. Actually, history tells us that committing cash for mobile products is one of the oldest professions on the world. In the old times, these stores might not have shared the limelight of this History Channel’s “Pawn Stars” but they had been an essential part of society and company.
Nowadays, pawn shops in this class provide substantially the same services. The short-term loans are used by families and individuals to bridge the fiscal gap and fulfill many immediate needs such as paying utility, lease and hospital bills in addition to purchasing gas and food. On certain occasions, they’ve helped small business owners meet their own payroll expenses.
The National Pawnbrokers Association (NPA) at Texas that advocates for the rights of its members prior to government, states these loans “supply a safety-net to over 30 million unbanked or even under-banked Americans”.
The Benefits of short term loans:
They provide money when there is nowhere else to turn
* You do not require a credit rating
* They negatively impact a client’s credit
* You are able to retrieve your silver and gold at the specified time and reuse them for future loans
Few know that pawnbrokers have a code of ethics that requires them to serve clients with honesty, professionalism and integrity. They need to also comply with laws enacted from the local, state and national authorities. Following are a few points of interest shared with the NPA.
* In accordance with the 2010 U.S. Economic Census, there were approximately 8,600 pawn institutions
* 81 percent of those stores are independently owned small companies or small regional chains
* Pawnbrokers and their trades are regulated by over 13 national statutes and regulations, such as consumer protection
* Additional Areas of trades, including the Rate of Interest, loan length and grace period, redemption procedure, record-keeping, etc., are regulated by local and state legislation