Pawnbrokers lend money on items of value ranging from gold and diamond jewelry to musical instruments, televisions, tools, household items, and more! These items maintain their value over a reasonable period of time and are easy to store, especially jewelry. All customers provide collateral, eliminating the need for us to distinguish high risk borrowers from low risk borrowers. Typically, loans average between $100 and $400, although they can be as small as $20 or as high as several thousand dollars depending on the value of the collateral. Contracts vary from state to state, but the average loan period is 120 days. Generally, interest rates will vary with the amount of the loan. The process is much the same as any other lending institution, with the primary difference being the size of the loan, the collateral and the holding of the merchandise until the interest or the loan has been repaid or the loan period expires.

Pawnshops offer consumers a quick, convenient, and confidential way to borrow money. A short- term cash need can be met with no credit check or legal consequences if the loan is not repaid. A customer receives a percentage of the value the broker believes the collateral would bring in a sale. Although the loan to collateral ratio varies over time and across pawnshops, a loan of about 50 percent of the resale value of the collateral is typical. In other words, pawnbrokers feel their loan is "paid in full" at the time it is made. When a customer pawns an item, terms of the loan are printed on the pawn ticket that is given to the customer. The ticket states the customer's name, address, type of identification provided to the pawnbroker, a description of the item, amount lent, maturity date of the loan, interest rate for the loan, and the total amount that must be paid back to redeem the item. Most states (including New York state) regulate pawnshop interest rates and other charges, such as storage or insurance fees.

If a customer defaults by not repaying the loan, the collateral becomes the property of the pawnshop after the loan is overdue by a specific amount of time, generally one month. At All Island Jewelry & Loan, we will notify, by mail, the owner of the pledge, that he/she will lose the right to his property unless he redeems it within the stipulated grace period.

NO. On average, 70 to 80 percent of all loans are repaid. Repeat customers make up most of our business, similar to any other lending or retail establishment. Pawnbrokers know the vast majority of their customers because they often borrow against the same items over and over again. Pawnbrokers offer non-recourse loans, looking only to the item being pledged to recover their investment should the borrower choose not to repay the loan. It is solely the choice of the customer whether he/she elects to repay the loan.

Less than one fifth of one percent of all collateral is even suspect as having been misappropriated in any manner. Thieves and robbers are a pawnbroker's worst enemy. Pawnbrokers work closely with local law enforcement to catch and prosecute these perpetrators. A customer must provide positive identification to show evidence of the transaction. This information is then presented to the police department, therefore decreasing the likelihood that a thief would bring stolen merchandise to a pawn shop. Pawnbrokers are trained to look for signs of stolen property to avoid these costly mistakes. It is not in the interest of the pawnbroker to accept potentially stolen merchandise because the police can seize the merchandise and the pawnshop owner loses both the collateral and the loaned money.

Mainly price. Pawnshops can offer you merchandise ranging from 1/3 to 1/2 off retail prices.

Today's pawnbroker is looking to attract a broad range of clientele. Everything from the interior and exterior of his or her shop location, employee presentation, customer service, signage, marketing and the merchandising approach has been upgraded throughout the industry. Pawnbrokers focus on providing exceptional customer service and are very active in the community, both politically, and in local charities. Pawn shops today range from a single and multi-store operation to publicly held company chains.

The typical pawn shop loan customer is employed, living within 15 miles of the store, is of either sex, and occasionally needs short term cash for an unexpected bill such as a medical expense or car repairs. The typical pawn shop retail customer is a bargain hunter, either by need or desire, and comes from all walks of life. At All Island Jewelry & Loan, many of our customers have been our customers for years. Whether pawning or purchasing, they know us and trust us to be honest and fair.

NO. Pawn shop customers provide full identification with each transaction, a copy of which can be made available to local law enforcement. Additionally, most pawnshops maintain surveillance cameras in their stores, the same system used by banks. To require anything more than required by banks implies there is a relationship between how much money one has and their integrity. You have questioned the quality of their character based on financial status - a form of discrimination.