February 22, 2020 - Pawn Resources
Pawn shops, like any other finance-oriented business, have regulations in place that protect the consumer. I was surprised to find how strict they were.
Most pawn shops work relatively the same way. Let’s say you decide to buy or sell an item at a pawn shop – often a laptop, an iPhone, or an instrument.
1. An employee or pawnbroker provides an estimate, guessing how much your item is worth.
2. He/She may offer to buy your item outright. You can haggle over price, but don’t expect a big change from his original offer, or:
3. You can take a loan from the broker and leave your item there as collateral
Simple as it is for you, there are a lot of rules governing the process. In particular, these are federal and state laws that pawn shops have to abide that protect consumers.
When you decided to buy or sell at a pawn shop, always check to make sure that it has a license to act as a broker. If you have any doubts you’re getting a fair deal (or dealing with an unauthorized shop), please don’t hesitate to reach out. You can reach me and my team for help at email@example.com. We work hard to make sure all of our shops play by the rules, and we care deeply about your experience. We also invite you to read more about who regulates pawn shops with Brian the Pawn Nerd: Pawn Shops, Regulated.
Jordan Birnholtz is the cofounder of PawnGuru. An alumnus of the University of Michigan, Jordan started PawnGuru in 2015 with Jon Polter, David Stiebel, and Jessica Zahnd. When he's not working at PawnGuru, Jordan volunteers his time to support undergraduates in building socially-responsible businesses and organizations through Optimize, a program at the University of Michigan.More Articles