Pawnbrokers 101

A pawnbroker takes possession of your items and gives you the money and a memorandum, note or ticket which contains the substance of the arrangement. The holder of the memorandum, note or ticket is presumed to be the person entitled to redeem the articles pledged as collateral, so the ticket has to be guarded very carefully.

If during the time specified, the articles are not reclaimed by repayment of the loan plus interest, a pawnbroker has the right to sell the pawned items. If the sale results in a profit to the pawnbroker over and above the amount of the loan, plus interest and fees, the borrower generally has a period of time in which to claim this profit. If the excess isn't requested by the borrower during that period of time, the pawnbroker gets to keep it.

The ticket holder may generally redeem the pledged articles at any time prior to the sale.

A legal identification is often required to pawn an item, and the pawnbroker may have to hold the item until the police can verify the item has not been stolen.

Pawnbrokers can also purchase an item outright for cash with no repayment expected. In this case, the pawnbroker can offer the item for sale immediately.

Don't be surprised if a pawnbroker asks to fingerprint you. To prevent pawnbrokers from being used as an outlet for stolen goods, fingerprinting is required by many states.

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