ARKANSAS PAWN BROKERS ASSOCIATION
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Commonly Asked Questions About Pawn Shops

Question:    How does a pawnshop work?

Response:   Pawnbrokers lend money on a multitude of items of value. Gold, diamond and other precious stone jewelry, musical instruments, televisions, DVD players, computers and other electronic devices, tools, silverware, household items, boats, automobiles, trucks and trailers are just some of the items that pawnbrokers will hold as collateral when making a pawn loan.

Most pawnbrokers will not accept just any item of value. Depending on the physical storage space available, the number of similar items he has in inventory and the type of item are all considerations. If your pawnbroker cannot pawn an article that you present to him, he’ll certainly tell you about the items he will make a pawn on.

Pawnshops, like all other business retailers, set their own terms and conditions for the number of days a loan is made, the renewal fees, payoff conditions and any grace period during which time the pawn loan is held open to give the customer a little extra time to redeem his pawned items.

Question:    Are there any restrictions on what I can use as collateral for a pawn loan?

Response:   Yes, the items you pawn MUST be owned by you, completely free of encumbrance. That means the items you pawn must not be subject to repossession by any retailer, bank or credit company. All pawnshops are required to report ALL pawn transactions to local, county and state authorities; knowingly pawning stolen or encumbered articles is a FELONY.

Every pawnshop MUST insure your identity by requiring your presentation of a valid driver license, state identification, military identification or other identification considered by the local police to be acceptable. Social Security cards, membership cards and identification not having a photograph of you may not be acceptable. You MUST be at least 18 years old.

Question:    Can I pawn a firearm at any pawnshop?

Response:   Only pawnshops licensed as gun dealers by the federal government can pawn weapons. Every weapon transaction is recorded and reported to the Bureau of Alcohol, Tobacco and Firearms. When you pick up your pawned items, you will be required to complete Federal Form 4473. Every time you redeem a pawn this form must be completed by you and the pawnbroker must call the authorities and obtain authorization from them to return the weapon to you. The government may instruct the pawnbroker to hold the weapon for several days to further check your redemption application. Or, if for a variety of reasons, including past criminal convictions, they can tell the pawnbroker to keep the weapon.

If you have any prior criminal convictions or any other personal problems that might prevent you from redeeming your pawned articles, DO NOT pawn them.

Question:    What should I do if I lose my pawn ticket?

Response:   Your pawn ticket is a negotiable instrument and can be used by anyone to redeem your items. The pawnbroker cannot be held liable for allowing another person to redeem your pawn if he/she presents the original contract form to the pawnbroker. Call immediately to let the pawnshop know that your ticket was lost and ask them to make a note that no person, other than yourself, is authorized to redeem your pawn.

Question:    I think that something stolen from me was pawned by the person who stole it, how should I approach the pawnbroker?

Response:   Pawnbrokers do not want stolen articles in their inventory. Take the item receipts, serial numbers and descriptions to your local police department and report the theft or burglary incidence. Only the police can retrieve your stolen property after you have made a formal complaint against the person or person(s) that stole your property.

Question:    A family member or friend stole my property but I do not want to report them to the police; can I get my property back from the pawnbroker?

Response:   Unless the theft has been reported, the pawnbroker cannot return the pawned items to you. However, you could bring the thief to the pawnshop with you and redeem the pawn for the contractual price.

Question:    If I don’t pick up the pawned items an I still responsible for repayment of the pawn?

Response:   If you forfeit (don’t pick up) your pawned items, you don’t owe the pawnshop anything. The pawnshop becomes the rightful owner of the items and may sell them to cover the money owed by you on the pawn.

Question:    If I forfeit a pawn item, will the pawnbroker be willing to make another pawn for me?

Response:   Pawnbrokers offer non-recourse loans, expecting that the value of the pawned items will cover the loan. It is your choice whether or not you redeem your pawned items. If you don’t redeem your pawn the pawnbroker will not hold that against you; you are welcome to return and pawn anytime you wish.

Question:    What difference does it make if I buy items at a pawnshop or any other retail outlet?

Response:   In addition to selling quality used products, most pawnshops have an abundant variety of new merchandise. Most pawnshops sell their goods at a better discount rate than most other retail businesses.

Question:    Is a pawnbroker required to report pawn transactions to any federal government agencies?

Response:   If you pay your pawnbroker $10,000.00 or more during any 24 hour period, or if during the course of any 12 month period you pay the pawnbroker $10,000.00 or more as repayment on one loan, one layaway or merchandise sale and the payment is made in cash, money order, bank check, or cashier’s check, the pawnshop is required to make a report of your cash transactions to the U.S. Treasury Department.

Every pawnbroker is required to check your name to insure that it is not listed on the O. F. A. C. / S. D. N. list published by the U.S. Treasury Department pursuant to the Patriot Act and applicable Presidential Executive Orders. This list contains the names of suspected terrorists, drug dealers, persons who do illegal business and others. If the pawnbroker refuses to make a loan to you, sell to you, or refuse to return your pawned items because your name appears on the list, you can clear your name by contacting the federal authorities and presenting proof that you are not the person on the list. The U. S. Treasury Department will then notify the pawnshop of your cleared status.

All law enforcement officers can review pawn transactions in the course of investigations.

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