5 things you didn’t know about pawnbrokers – common myths about the industry debunked

There are many misconceptions about the pawnbroking industry. Here are 5 things you may not have known about pawnbrokers:

1. Pawnbrokers are regulated by the government.

Pawnbrokers are required to be licensed and regulated by the government. In the United States, pawnbrokers are regulated by the Federal Trade Commission and the Consumer Financial Protection Bureau.

2. Pawnbrokers do not charge interest.

Pawnbrokers do not charge interest on loans. Instead, they charge a service fee for the loan. The service fee is typically 10% of the loan amount.

3. Pawnbrokers do not require collateral.

Pawnbrokers do not require collateral for loans. Collateral is something that is used to secure a loan. Pawnbrokers use the items that are pawned as collateral.

4. Pawnbrokers do not keep your items.

Pawnbrokers do not keep your items. Once you have paid off your loan, you can retrieve your item.

5. Pawnbrokers are not loan sharks.

Pawnbrokers are not loan sharks. Loan sharks are unlicensed lenders who charge high interest rates and fees. Pawnbrokers are licensed and regulated by the government.