About Pawn Shops
One of our many fine silver pieces of jewelry
Pawn is one of the oldest businesses around. Ancient Greece and the Chinese have had pawn brokers for at least 3,000 years. Queen Isabella of Spain pawned her jewels so that Christopher Columbus could sail in search of a new route to the west Indies. Throughout history, people from all walks of life have used pawn shops from Kings and the rich to your average Joe. You can buy and sell things at a pawn shop and use your valuables as collateral for a loan.
How pawn works?
Many people are hesitant to come into the pawn shop because they are unsure how it works. While it may seem a little scary at first, pawning your gold or other valuables is really a very easy process. Simply bring in your gold or other valuables to our shop located in downtown Pagosa Springs, CO where we will have it evaluated and give you an appraisement. We need to be able to examine the item in person. If it’s gold, we will test it for purity. If it’s an item such as a flat screen TV or laptop computer, we will take into consideration things like age, condition and resale value.
After we examine your item, we will determine a value and price that we are authorized to pay you for your item as a buy, or lend to you using the item for collateral. You can generally get a little more cash for your item if you sell it. If you decide to sell, we will pay you cash and you are on your way! If you decide to use the item as collateral for a loan, we will lend you the money. Loans can be anywhere from a month to three months or more, depending on what you need. If you run into a jam, we can usually work with you to extend the loan as long as you cover your interest. You are charged interest monthly until you pay your loan back in full and redeem your item.
What happens to items in pawn that aren’t redeemed?
Most items in pawn get redeemed by their owners. However, sometimes they aren’t redeemed. When you fail to redeem your item by paying back the original loan amount plus interest, we will resell your item. Items get resold in our show rooms, to wholesalers and retailers and to refineries. If you ever think that you’re going to have trouble paying back your loan in the agreed upon time and don’t want to give up your collateral, please talk to us first.
Are we licensed?
Yes. We are a nationally licensed pawn brokerage with the National Pawnbrokers Association. NPA works to provide independent pawnbrokers nationwide with resources and tools to strengthen the pawn industry. NPA members are committed to operating their business in such a manner as to enhance and promote the positive and professional image of all pawnbrokers. Members believe in establishing positive and long-lasting relationships with local, state and federal government officials. The NPA is the industry’s only national association representing independent pawnbrokers.
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 most pawnbrokers are licensed and regulated by local authorities as well.
