FAQ On Pawn Shops Loans And Your Personal Information

Pawn shop loans are a very common transaction, with 83 percent of pawnbrokers saying that pawn loans are their most common business. This is an easy way to get a little money quickly. In order to process any loan, your personal information must be received. In a world where personal information is stolen misused, people are warier than ever with leaving their personal information behind with strangers. 

Experts at pawn shops such as Monte de Piedad want their customers to feel secure when they leave their information. If you are considering a pawn shop loan, get all of your frequently asked questions (FAQ) pawn shop loans answered here.

How do Pawn Shop Loans Work

A pawn shop works by loaning money on used items. A person brings in their item, and the pawn shop broker gives them some money for it if it is in good condition. For many, that is a pawn shop loan. In time, the person comes back for the item, with the cash loaned plus interest.

There are a number of regulations on how pawn shop loans work, to protect you as the consumer. Pawn shops can only charge a certain amount of interest. In New York, the interest is 4 percent a month. Texas is permitted to charge 15 to 20 percent a month.

The worst-case scenario for you is that you keep the money and don't come back for your item. There are no wages garnished by the pawn shop, they don't report you to the credit bureaus or check your credit at the time of the loan. Because this is a loan, pawn shops do need to keep your personal information.

How do Records With Pawn Shop Loans Work?

It's natural to wonder what information is kept and for how long. There are a number of reasons your information will be kept. Many people steal items and for a pawn shop loan, never expecting to come back for the item. If those stolen items are reported to the police, that personal information is needed for them. It is also needed for the pawn shop owner to prevent them from being held liable for being in possession of a stolen item.

At the same time, if you are getting a loan, they need your personal information so that they can make sure you get your item back when the time comes. There are state and federal laws that mandate that pawn shop owners keep their personal information. You will need to provide a government-issued ID. 

Pawn shops will submit reports of their items into a database that is checked by the police. They will be able to get the information of who sold what to them when they need to. Yes, you will need to give them your personal information. That is to protect you from ever being accused of doing something wrong with the item that you are selling.

How Long Are Records Kept?

Your personal information will be kept on file with the pawn shop for a certain amount of time as required by local and federal legislation. Most of the time that means anywhere from 3 to 5 years. When that period passes, the records will be destroyed. They will never be reported to the credit bureaus, and you will have a secure loan.

Get a Pawn Shop Loan Today

If you are thinking of getting a pawn shop loan, experts like those at Monte de Piedad will tell you that it is among the most secure loan out there. Get a pawn shop loan today and know your information is secure.

 

Disclaimer: I received one or more of the products or services mentioned above for free in the hope that I would mention it on my blog. Regardless, I only recommend products or services I use personally and believe will be good for my readers. I am disclosing this in accordance with the Federal Trade Commission's 16 CFR, Part 255: "Guides Concerning the Use of Endorsements and Testimonials in Advertising. I have used direct text from the website of the company/product I am promoting to facilitate in my review.