what kind of lawyer to fight the pawn shop

Full Answer

What is a private pawn shop and how does it work?

Pawn shops are financial institutions that have been around for centuries and are a valuable resource for people who need short-term loans. They are considered a last resort for people who need money quickly but don’t want to or can’t take out a traditional loan from a bank.

Is a pawn shop loan safe?

A pawn shop loan is relatively safe, in that these loans are regulated by state law in many states. Many shops have been operating for a long time, so you can find a shop with good reviews and that you feel comfortable with as a borrower. Are they safe in a financial sense?

What happens if someone steals your property from a pawn shop?

If a pawnshop is negligent in losing or allowing the property to be stolen by a third person, then it is liable to the customer who gave the property to the pawn shop owner, if they want to pay off the loan and get their property back.

Are pawn shops protected by the Federal Trade Commission?

Pawn shop customers are protected by the Federal Trade Commission’s (FTC) Consumer Protection Act, Equal Credit Opportunity Act, and TILA, among other regulations. Under the latter act, pawn shops must disclose certain information to consumers, including the terms of the loan and the customer’s rights if they default on the loan.

Can pawn shops lie to you?

A: You do not have a claim for this. The buyer/pawn shop has no duty to tell the truth about what they believe the value of your property is worth. As the owner and seller, you should know or be capable of researching the fair market value of your property before you sell it.

How much can you negotiate at a pawn shop?

Haggle gently After the shop makes an offer, it's acceptable and expected to ask for a higher price. However, don't overdo it or you might end negotiations before they really begin. At most, you might get closer to 60% of the value of your item. If your pawnbroker can get close to that number, take the offer.

Can you negotiate at pawn?

When negotiating with a pawn shop to establish a value for your items, there are some things to keep in mind: Haggling is expected. You don't have to accept the first offer. A pawn shop will expect you to counter with a higher price.

What happens if a pawn shop loses your item?

If a pawnshop is negligent in losing or allowing the property to be stolen by a third person, then it is liable to the customer who gave the property to the pawn shop owner, if they want to pay off the loan and get their property back.

How do you deal with a pawnbroker?

How to Sell to a Pawn ShopFind the right pawn shop. Do some online research to see what others have said about working with area pawn shops. ... Know if you want to pawn or sell. ... Negotiate. ... Be prepared to prove your claims. ... Show things in their best light. ... Pay on time. ... Do your research. ... Negotiate.More items...•

How do pawn shops determine value?

How do you determine the value of the item? Pawn shops base the value of the item on current appraised value, its current condition and the ability to sell the item. Pawnbrokers use research tools that they have at their disposal to determine an item's value and get you the most money for the item.

What percentage of value will a pawnshop give you?

approximately 25% to 60%At a pawn shop, you leave your property—the most commonly pawned items are jewelry, electronic and photography equipment, musical instruments, and firearms. In return, the pawnbroker typically lends you approximately 25% to 60% of the item's resale value. The average amount of a pawn shop loan is about $75–$100.

Can you talk pawn shops down?

Most pawnshops leave room for negotiation on everything. When they are buying or pawning an item, their first offer might not be their absolute best offer. On the other hand, if you're buying something from a pawnshop, the ticket price on the item isn't always the lowest price they will sell it for.

What do pawn shops pay the most for?

High-Demand Pawn ItemsJewelry.Precious metals.Watches.Firearms (registered to you)Electronics.Power tools.Musical instruments.Sporting goods, such as bikes.More items...•

How do I get my stuff back from the pawn shop?

Pay the loan as agreed and on the final payment, you get your item back free and clear. It is important never to borrow more than you really need or more than you believe you can pay back. If the debt is not paid back in the time allotted you may forfeit the item and it can be resold.

Can I get my stuff back from pawn shop?

Yes, in most cases, you will be able to get your stolen item returned to you without having to pay the pawnbroker for the item. In rare cases, though, and according to the state you are located in, laws may be different, and you may have to pay the pawnbroker the same amount he paid the thief.

Can someone else pick up my pawn loan?

You are the only person who can pick up the loan unless you give somebody a notarized letter authorizing them to pick up the loan on your behalf. However, anyone may make a payment on your pawn loan on your behalf as many times as needed.

3 attorney answers

The statutes my colleague noted are related to what's required under your pawn shop license. Failure to follow those procedures could result in license issues, as well as be evidence of your fault in a transaction. Otherwise, your matter would be handled under contract law - whatever was agreed by the parties regarding the transaction.

Michael James Duffy

I think this comes down to a general contract law issue, as opposed to an issue specific to pawn shops. (Although I do not know whether there is specific law relating to pawn shops).

Morgan Jay Seegmiller

These statutes should help: ARS 44-1621. Definitions 3. "Loan" means advancing money on the security of pledged goods or purchasing tangible personal property on the condition...

What is a pawnbroker?

Pawnbrokers have been serving as a resource for cash-strapped people hoping to sell an item—or put up valuable property in exchange for a short-term loan—for thousands of years. The process of pawning property for fast cash starts when a customer brings an item into the shop.

What happens if you don't repay a pawn loan?

If you don’t repay the loan, the broker will recoup the loaned money by selling your property. Whether you're selling an item or using it as the basis for a loan, you should expect the pawnbroker to offer a lower price than what you paid for it. Some haggling is expected.

What happens if you sell collateral?

selling the collateral if you fail to repay the loan, or. selling the item it purchased from you outright. If the broker agrees to give you a short-term loan, you’ll leave the item with the pawnbroker as security for a specified period.

Which law requires a shop to disclose loan terms?

The Truth in Lending Act, which requires a shop to disclose loan terms. The Equal Credit Opportunity Act, which prohibits lending discrimination due to age, gender, race, national origin, color, religious preference, marital status, or receipt of public assistance benefits.

Is a pawnshop loan predatory?

Payday lenders, title lenders, and pawnshops all market their services to people who don’t have a lot of options for getting cash fast. Of the three, pawnshop loans are perhaps the least predatory. Still, if you’re considering pawning an item, you’ll want to learn what to expect before making a trip to the shop to make sure that you get the best deal possible.

Do pawnshops have to follow laws?

Pawnshops must follow specific laws geared to protect you as a consumer, as well as the public as a whole. Some states have laws regulating the amount of interest and the length of loans. Many federal laws also apply to pawnshop transactions, like:

What is a Pawn Shop Loan?

A pawn shop loan is a short-term, secured loan. You take an item of value to the pawnbroker, the shop evaluates it and gives you a loan for a percentage of the value. These loans are typically for 1-3 months, but you can pay back the loan at any time and get your item back. Each month, you’ll need to renew the loan until the end of your loan term.

Do Online Pawn Shop Loans Exist?

A few online pawn shop loans exist. Some specialize in high-end items like luxury watches, gold, expensive jewelry, and designer handbags.

Are Pawn Shop Loans Safe?

A pawn shop loan is relatively safe, in that these loans are regulated by state law in many states. Many shops have been operating for a long time, so you can find a shop with good reviews and that you feel comfortable with as a borrower.

Pawn Shop Loan Alternatives

While a pawn shop loan offers quick cash, it’s not the only option. There are a range of financial products that can get you cash quickly: