Common Myths About Pawnshops

When most people think of pawnshops they think of tiny dirty stores that deal in stolen wares and that pawnbrokers are going to give you a lowball offer on your loan. While we can’t promise for all pawnshops, we know a majority of pawnshops beg to differ. Pawnbrokers are in the business of making money and it would be counterintuitive for a business to work against their customers. Here are a few commonly circulated myths about pawnshops and why they’re untrue.

Myth: Pawnshops are unregulated — kind of like the wild, wild west.
Truth: In fact, pawnshops are a highly regulated industry with regulations at the national, state, and local level. We at EZ Pawn Corp are members of several organizations such as the Bronx Chamber of Commerce and The New York State Collateral Loanbrokers Association. Our very own Lauren Kaminsky is on the board of the National Pawnbroker Association to help ensure that they follow all laws and regulations needed to show our clients that we are a store that can be trusted for all of our clients pawning and buying needs.

Myth: Pawnshops take in stolen goods.
Truth: Pawnbrokers are required to document all transactions and record identification. Actually, pawnbrokers were one of the first industries to ever collect personal information before conducting any transaction. We know who our customers are. Less than 0.001% of all pawned merchandise is stolen. That’s because pawnbrokers like EZ Pawn Corp and local police are constantly in communication with each other about what goods enter the pawnshop. This regularly transmitted line of communication drastically decreases the likelihood that an item is stolen. (http://money.howstuffworks.com/pawnshop4.htm)

Myth: Pawnshops are dirty places that only deal with sketchy people.
Truth: Pawnshops are mainly family-owned business that have been passed down through generations. The actual average pawnshop customer is 36-years-old and has an annual income of $29,000. (http://www.businessinsider.com/pawnshop-customers-statistics-2011-11#the-average-customer-has-an-income-of-29000-and-is-36-11) Since the recession, pawnshops have become more and more popular within the middle class and the affluent. Now that the economy is growing, pawnshops like EZ Pawn Corp are gaining popularity as a great place to score a deal on jewelry and other goods.