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Let me answer this for you. A lot of people have misconceptions about pawn shops. I am a pawnbroker. A pawn is a short-term cash loan. A customer would bring in an item for collateral against the loan. I determine a loan amount based on what the item is currently selling for online. Usually this amount is about 1/6 to 1/4 of the price for a new item that is similar to the one the customer has. If the customer agrees to this amount, I proceed with the pawn. The customer needs to be at least 18 and bring in either a driver's license, state issued Iowa or US passport. They also have to provide their SSN. They will sign a copy of the pawn contract after they read it. I will give them the agreed upon amount of cash, and they are on their way. They will have to come back within the specified mount of time (depends on the state, in Iowa it is 90 days) and pay off the loan amount, plus fees and whatever interest has accrued. I'm aware that some states require pawn customers to pay the interest every month, so be sure to ask the pawnbroker if you have to pay anything before you come in to pick up your item. When the loan is paid off, the customer is given back their item. It's pretty simple, and a super easy way to get a cash loan if you need money for a bill or groceries or whatever before payday comes. If the customer doesn't pay back the loan, I sell their item after the loan defaults.
For Finance and credit solutions I always visit this site where you can find all the solutions. RE :What is a pawn shop loan? Explain to me what is a pawn shop loan is and give an example of it. Follow 5 answers
You take your stereo (or other item) worth $300 to the pawn shop and the give you a loan for maybe $50. If you fail to pay the loan according to the terms, they keep the stereo and sell it for what they can.
Depends on the laws in his state, but every place I've heard of has pretty strict laws in place regarding pawn shops. In all likelihood, the pawn shop is required to keep his stuff for the 30 days, or they will be breaking the law. BTW, tell your sister she can go into any electronics store and buy a WII, there is no shortage.
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