Local Pawn Shop

Your local pawn shop is an alternative to a traditional bank or lending company.  Most people use a pawn shop because they cannot get a loan at a bank (or they don’t want to).  Pawn shop loans are not reported to credit agencies nor the government.  They are discreet and private and can be very useful when you need fast cash.  Most local pawn shops are small or family owned businesses, and not huge corporations like banks.  This is advantageous to clients because they are usually not strict, especially when it comes to due dates and deadlines.  Usually, the manager or owner of your local pawn shop will allow you to make late payments and not default your items as a courtesy.  If you have a loan with a bank or other large lending company they won’t be as nice.  So how do pawn shops decide when to default a loan?  What kind of circumstances will lead to an extension?  And how much leeway does the pawn shop have with deadlines?

The law in Florida states that after 60 days of no payments, a pawn shop can default a loan and list it for sale.  That means if you pawned something today, two months go by and you haven’t paid any interest on it, the pawn shop can default it.  However, the advantage to getting a loan at a pawn shop is since it is usually a small business you can ask for extensions.  Sometimes clients are waiting on a check or don’t get paid until a certain date.  If a pawn shop allows 2 or 3 extra days for the money to come in they will get paid their interest and the client can keep their item.  It really is a win win.  So while the law does state a specific day when items can be defaulted, most pawn shops wait even longer to give their clients a chance to pay interest.

Circumstances that lead to pawn extensions include good customer history, a valid excuse, or good communication.  Good customer history can buy you a lot of extension time at a pawn shop.  Sometimes clients have multiple loans and have had loans for a long time.  If they have had a good history of paying on those loans and earning the shop a lot of money it will be easy for them to get an extension.  They can just say I’ve been good customers of yours for a long time, paid a lot of money, just give me a couple more days and I will make a payment.  A valid excuse for an extension would be like if the client ended up in the hospital, or got very ill, something like that.  You never know what might happen to customers when you don’t see them so you have to be open-minded.  A pawn shop might also grant you an extension if you have good communication with us.  Rather than not calling and just ignoring the due date, if you call and let us know what is going on we will be more receptive and probably grant you an extension.

Pawn shops have a lot of leeway with deadlines.  If they don’t want to default something ever they don’t have to.  And if they want to default stuff right at 60 days they can do that too.  Every situation is different and it just depends on what they feel is correct at the time.

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