There are stop signs, lawyer-client confidentiality laws, HIPPA laws, and many other regulations everyone has to follow. Pawn shops must also follow state and federal laws.
If you are wondering how old you have to be to take out a pawn loan, the answer depends on the state you live in. Typically, the age is consistent with what your state requires, as the age of majority.
There are a few states that the age is 19 years old, and in Mississippi, the age is 21. Minors don’t have the same understanding of the law as adults, and thus can’t sign contracts. A child can not pawn an item. For this reason, if minors sign contracts, the contract is not valid, and the minors are not obliged to comply with the contract.
State and Federal Laws Govern Pawn Shops
Pawn shops must follow state and federal laws. The pawn industry is highly regulated. The Truth in Lending Act, Equal Credit Opportunity Act, and the Federal Trade Commission rules on Data Privacy and Safeguard of Consumer Information all have defined rules the shops must follow.
Independent pawnbrokers comply with local, state, and federal regulations and laws. They also work with local law enforcement to collect data on transactions to help reduce crime. Pawn shops offer consumer credit secured by personal property. The rules and regulations governing pawn shops help protect the pawn shops and their customers.
How Does Pawning Work?
A person of legal age may find something of value they own that they no longer use or want. Or they might have gold, jewelry, diamonds, working tools, electronics, or something of similar value, but they don’t want to lose the item. They may have a valuable item, but the item has sentimental value, so pawning is an option because people can reclaim their item.
The item is brought into the pawn shop, or in some situations the pawn shop may have an online quote form that can be filled out for a quick estimate. The valuable item is appraised and authenticated. Questions or asked about the item to ensure it wasn’t stolen, and then the fair market value is determined.
Once all these steps are complete, the pawnbroker will make an offer based on the value of the item. The item is then used as collateral for a short-term loan for quick cash.
The customer needs to provide basic information and have a government issued ID. Pawn loans do not require a credit check and never negatively affect a customer’s credit.
States may or may not regulate who’s allowed to sell to a pawn shop. The key is don’t try and sell something that doesn’t belong to you. Pawnshops make a strong effort to work with local police to decrease stolen merchandise. They try and understand the history behind an item, so they aren’t buying stolen items.
Unlike a pawn loan, when a pawn loan is paid in full, the item is returned, selling an item to a pawn shop is a transfer of ownership of that item.
Pawn shops still require you to have a governmental issued ID to sell to them. State issued picture ID, military ID, Passport, Alen Registration Card, and Driver’s License are all examples of ID that can be used.
Pawn shops have safeguards in place to catch people from selling stolen goods. This provides some confidence when purchasing merchandise from a pawn shop.
Should Young People Pawn?
Pawn shops offer young people a viable way to get small loans without a credit check. Used properly, they can work to keep people out of financial problems. There are inherent risks with all things. Young people should be aware of these risks, for example the loss of collateral if a contract isn’t paid off, or the fees that can quickly add up.
The key is to no haphazardly pawn, because there are risks involved. Pawn shops can be a great option, and finding a pawn shop with a trustworthy reputation is essential.
Goldmine is a trustworthy pawn shop that works with young people, old people, middle aged people, and all social economic classes of people. They have skilled pawn brokers who know their business and treat their customers like family and friends.
Goldmine Pawn has a confidential process and can help you make your decision about pawning, selling, or buying from them. They accept gold, silver, fine jewelry, designer watches, luxury handbags, and just about anything of value. They are happy to work with their customers to appraise and authenticate their times, so they can get the most money for their things.
If you are trying to determine the best options to get money or how to get the most value for your items, visit Goldmine Pawn.