A Pawnbroker, is an individual or business (Pawn Shop) that offeres secured loans to people with items of personal property they use as collateral.
The word “pawn” is derived fromt he Latin ‘pignus’ for “pledge,” and the items having been pawned to the Broker are themselves called pledges or pawns (collateral).- There are more than 12,000 pawn shops operating in the United States
- The average pawn shop loan is $150
- More than 80% of all loans are paid off
- 30% of the U.S. adult population has no banking relationship
- The size of the pawn shop industry in the U.S. is an astonishing $7.5 billion
- Since the recession started in 2008, cash-for-gold transactions shot up 35 percent
- More than half of pawnbrokers say the recession has increased pawn loans, but significantly hurt sales. Some pawnbrokers report up to a 15 percent decline on their retail side.
- Fewer than .02% of pawn shop transactions involve stolen property
- State laws mandate that customers pawning items provide detailed information including name, address, and date of birth and show government issued ID – fingerprints can also be required.
Source: National Pawnbrokers Association
About the National Pawnbrokers Association:
Headquartered in Keller, Texas, the National Pawnbrokers Association (NPA) was founded in 1988 to support the growing network of responsible pawnbrokers in the United States. As a trade association, the NPA is the industry’s only national association. The Association offers guidance to pawnbrokers on how to be involved on a local, statewide and national basis. In addition, the NPA offers members compliance training related to the federal, state and local laws that apply to the industry.