Samsung Galaxy Note 7 Crisis

January 11, 2020 - Electronics

If you are a pawn shop owner or customer in the market for a great deal on a smartphone, resist the temptation to buy a Samsung Galaxy Note 7.

Since our last post about the Galaxy Note 7 recall, Samsung has moved to replace the device with what they thought to be a non-faulty phone. However, recent reports of dangerous incidents involving the device overheating or catching fire have become so numerous that Samsung has halted the phone’s production altogether.

Last month, Samsung recalled 2.5 million phones globally in response to the initial reports of explosions involving the lithium ion batter in the Galaxy Note 7. Now that replacements are backfiring, major U.S. cell phone carriers refuse to continue carrying the phone altogether.

Why Pawn Shops Shouldn’t Buy the Galaxy Note 7

Pawn shop owners should warn their staff to be on the lookout for the Galaxy Note 7 device. If a customer tries to pawn or sell the device to your shop, train your staff to politely inform the customer of the situation, as they may have been previously unaware.

It is important to protect your pawn shop’s reputation, and accepting these devices—as shiny and new as they may be—can do damage to your business in the long-run.

Once you buy these devices from a customer, you put yourself in a position to lose money. No customer will want to buy the device, and in the chance that someone does without knowing about the recall, they could be badly injured.

What to do if Your Shop Already Carries the Galaxy Note 7

If your pawn shop already has Galaxy Note 7 devices in possession, bite the bullet and count it as a loss. It is not worth your business’ reputation and any potential injury that your customers or their property could sustain from the device.

We recommend that all pawn shops in possession of the device call Samsung at 844-365-6197 for next steps.

What to do if You Bought a Galaxy Note 7 from a Pawn Shop

If you bought a Galaxy Note 7 from a pawn shop, we recommend you contact that pawn shop directly to see what they suggest as the best course of action. You can’t assume that your pawn shop can take responsibility, since they are not a cell phone carrier.

In the event that you find yourself with no where to turn, contact Samsung at 844-365-6197 for next steps.

David Stiebel

David Stiebel is one of the cofounders of PawnGuru. David was educated at MIT, where he studied Math. He subsequently worked at Bain as a data scientist before starting PawnGuru in 2015. He started PawnGuru to build a better tool for pawn shops and consumers to connect.

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