Pawnshops offer the consumer a quick, convenient and confidential way to borrow money. A short term loan can be made with no credit check or legal consequences if the loan is not repaid. A customer receives a percentage of the value of the collateral. Although the loan to collateral ratio varies over time and across pawnshops, a loan of about 50 percent of the resale value of the collateral is typical. In other words, pawnbrokers feel their loan is “paid in full” at the time it is made. When a customer pawns an item, terms of the loan are printed on a pawn ticket that is given to the customer. The ticket states the customer’s name, address, type of identification provided to the pawnbroker, a description of the item, amount lent, maturity date.
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