A pawnbroker offers monetary loans in exchange for an item of value to the given pawn broker. The word pawn is derived from the Latin pignus, for pledge, and the items having been pawned to the broker are themselves called pledges or pawns, or simply the collateral. The Pawnbroker is a novel by Edward Lewis Wallant which tells the story of a concentration camp survivor who suffers flashbacks of his past Nazi imprisonment as he tries to cope with his daily life. ... For other uses, see Latin (disambiguation). ... Collateral within a financial context is used to indicate assets that secure a debt obligation. ...

Modern pawnbroker storefront.

Public domain from National Park Service files (seen at http://www2. ... Public domain from National Park Service files (seen at http://www2. ...

How the pawning process works

Within a certain contractual period of time, the pawner of an item may purchase it back for the amount of the loan plus some agreed upon fee. If the time elapses without payment, the pawnbroker is allowed to sell the pledged item to recoup the amount of the loan, which may have only been a fraction of its actual market value. Pawnbrokers often have a large number of formerly pawned objects for sale at their place of business, called a pawnshop, whereby they may recoup money that had been loaned out on an item subsequently forfeited by a pawn customer.

Pawnbrokers can also purchase an item outright for cash with no repayment expected; these sometimes need to be held for up to 30 days by law before they can be offered for sale. Because of the risk to the pawnbroker of receiving stolen property, and the interests of the community in not allowing a legitimate businessman to act as a fence, laws to protect both these parties exist in some jurisdictions in the United States through the means of a hold placed on an item purchased by a pawnbroker. If a hold law is in effect, it will last up to approximately 30 days, depending on location.^{[citation needed]} Such regulation is necessarily imperfect. Unscrupulous pawnbrokers buy goods from strangers with few questions, or turn a blind eye to certain customers, despite state laws in the United States that require a state issued ID card, Social Security number and physical description of a customer. Some local governments in the United States require a picture or thumbprint to be taken of the pawn customer. Few stolen items end up in pawnshops, though some claim that the nature of the business necessitates that some of the items will be stolen goods--many stolen items are just too common or too difficult for the authorities or even theft victims to identify and prove former ownership.^{[citation needed]} According to the U.S. National Pawnbroker's Association, less than 0.1% of items that come through a pawn shop are stolen. For other uses, see Cash (disambiguation). ... In law enforcement, a fence is an individual who knowingly buys stolen property for later resale in a (usually) legitimate market. ...

Items of value

Pawnbrokers are often willing to take in many types of items including jewelry, electronics, musical instruments, firearms, vehicles and tools. Gold is considered an item that is never to be turned away, because even if the item is of relatively low value it can still be sold in bulk to a smelter as scrap gold. Jewelry (the American spelling; spelled jewellery in Commonwealth English) consists of ornamental devices worn by persons, typically made with gems and precious metals. ... This article is about the engineering discipline. ... A musical instrument is a device that has been constructed or modified with the purpose of making music. ... A firearm is a kinetic energy weapon that fires either a single or multiple projectiles propelled at high velocity by the gases produced by action of the rapid confined burning of a propellant. ... Vehicles are non-living means of transport. ... This page discusses common devices known as tools, for other meanings see Tool (disambiguation) Modern hammer A tool is, among other things, a device that provides a mechanical or mental advantage in accomplishing a task. ... GOLD refers to one of the following: GOLD (IEEE) is an IEEE program designed to garner more student members at the university level (Graduates of the Last Decade). ...

When an item is pawned the pawn broker will typically loan out however much money the customer needs, though considerably less than the resale value of the collateral. Of course no pawnbroker is going to loan more than the value of an item being pledged and in most all cases it will be a fraction of the value. This is so the pawnbroker can make money on the item in the event the customer doesn't come back for the item and the pawnbroker must resell it.

The required time between forfeiture and sale of an time is usually 30 days plus a grace period that may be as long as three months. For some items, such as electronics that drop in value as new and improved models come out, pawnbrokers must offer a lower low to be certain that they can recover the costs associated with the loan while making a profit. Other items, such as gold, must be valued in keeping with the daily fluctuations in market value.

History

Main article: History of pawnbroking

This history is partially outdated for developments in the 20th century To trace the history of pawnbroking, we must go back to the earliest ages of the world, since lending money on portable security (see money and usury) is one of the most ancient of human occupations. ...

Ancient world

In the west, pawnbroking existed in the ancient Greek and Roman Empires. Most contemporary Western law on the subject is derived from the Roman jurisprudence. As the empire spread its culture, pawnbroking went with it.

Likewise, in the East, the business model existed in China 3000 years ago no different than today, through the ages strictly regulated by Imperial or other authorities.

Middle Ages

In spite of early Roman Catholic Church prohibitions against charging interest on loans, there is some evidence that the Franciscans were permitted to begin the practice as an aid to the poor.^{[citation needed]} Catholic Church redirects here. ... For other senses of this word, see interest (disambiguation). ... For other uses, see Loan (disambiguation). ... Franciscans is the common name used to designate a variety of mendicant religious orders of men or women tracing their origin to Francis of Assisi and following the Rule of St. ...

In England the pawnshop came in with William the Conqueror, with an Italian name, Lombard. In 1338 Edward III pawned his jewels to the Lombards to raise money for his war with France. King Henry V did much the same in 1415. William I ( 1027 – September 9, 1087), was King of England from 1066 to 1087. ... Events Ashikaga Takauji granted title of Shogun by the emperor of Japan. ... Events Friedrich I Hohenzollern (b. ...

The Lombards were not a popular class and Henry VII Tudor harried them a good deal. In the very first year of James I Stuart an Act against Brokers was passed and remained on the statute-book until Queen Victoria had been on the throne thirty-five years. It was aimed at the many counterfeit brokers in London. This type of broker was evidently regarded as a fence. Henry VII (January 28, 1457 – April 21, 1509), King of England, Lord of Ireland (August 22, 1485 – April 21, 1509), was the founder and first patriarch of the Tudor dynasty. ... James I (1394 - February 21, 1437) reigned as king of Scotland from 1406 until 1437. ... Victoria Queen of the United Kingdom of Great Britain and Ireland, Empress of India Victoria (Alexandrina Victoria) (24 May 1819–22 January 1901) was a Queen of the United Kingdom, reigning from 20 June 1837 until her death. ...

Modern time

The Chinese conditions are decidedly favorable to a borrower. He may, as a rule, take three years to redeem his property, and he cannot be charged a higher rate than 3% per annum.^{[citation needed]}

In the United Kingdom typical high street pawn interest rates vary between 5% to 12% gross per month and the average annual equivalent rate is 85%.^[1] It has been suggested that this article or section be merged with Main Street. ... For other senses of this word, see interest (disambiguation). ... The effective interest rate, effective annual interest rate, or simply effective rate is the interest rate on a loan or financial product restated from the nominal interest rate as an interest rate with annual compound interest. ...

The pawnbroker in the United States is generally subject to considerable legal restriction.^{[citation needed]} Each state has its own regulations regarding pawnbrokers, generally regulating the amount of interest that is allowed to be charged on a collateral loan. In Massachusetts, a 2007 Boston Globe investigation suggested 10% monthly interest was not uncommon.^[2] In the state of New York, interest at pawnshops is limited to 4% per month.^[3] This article is about the U.S. state. ... The Boston Globe is the most widely-circulated daily newspaper in Boston, Massachusetts and in the greater New England region. ... State nickname: Empire State Other U.S. States Capital Albany Largest city New York Governor George Pataki Official languages None Area 141,205 km² (27th)  - Land 122,409 km²  - Water 18,795 km² (13. ...

Symbol

This article may require cleanup to meet Wikipedia's quality standards. Please improve this article if you can. (July 2006)

Symbol of pawnbrokers.

The pawnbroker's symbol is three spheres suspended from a bar. The three sphere symbol is attributed to the Medici Family of Florence, Italy, owing to its symbolic meaning of Lombard. This refers to the Italian province of Lombardy, where pawn shop banking originated under the name of Lombard banking. The three golden spheres were originally the symbol which medieval Lombard merchants hung in front of their houses, and not the arms of the Medici family. It has been conjectured that the golden spheres were originally three flat yellow effigies of byzants, or gold coins, laid heraldically upon a sable field, but that they were converted into spheres to better attract attention. Image File history File links Broom_icon. ... Image File history File links Pawnbroker-traditional-symbol. ... For the board game, see Medici (board game). ... This article is about the city in Italy. ... For the village of the same name in Ontario, Canada, see Lombardy, Ontario. ... The Moneychanger by Rembrandt, 1627 For other uses, see Lombard. ... Bezants is a medieval name for gold coins. ...

Most European towns called the pawn shop the "Lombard". The House of Lombard was a banking family in medieval London, England. According to legend, a Medici employed by Charles the Great slew a giant using three bags of rocks. The three ball symbol became the family crest. Since the Medicis were so successful in the financial, banking, and moneylending industries, other families also adopted the symbol. Throughout the Middle Ages, coats of arms bore three balls, orbs, plates, discs, coins and more as symbols of monetary success. Pawnbrokers (and their detractors) joke that the three balls mean "Two to one, you won't get your stuff back". The Moneychanger by Rembrandt, 1627 For other uses, see Lombard. ... The Lombards (Latin Langobardi, whence comes the alternative name Longobards found in older English texts), were a Germanic people originally from Northern Europe that entered the late Roman Empire. ... The Middle Ages formed the middle period in a traditional schematic division of European history into three ages: the classical civilization of Antiquity, the Middle Ages, and modern times. ... This article is about the capital of England and the United Kingdom. ... For other uses, see England (disambiguation). ... Statue of Charlemagne in Frankfurt, a Romantic interpretation of his appearance from the 19th century Charlemagne (c. ... Heraldry in its most general sense encompasses all matters relating to the duties and responsibilities of officers of arms. ...

Saint Nicholas is the patron saint of pawnbrokers. The symbol has also been attributed to the story of Nicholas and the three bags of gold. For other uses, see Nicholas. ... Saint Quentin is the patron saint of locksmiths and is also invoked against coughs and sneezes. ...

Criticism

Critics^{[attribution needed]} of pawnbrokers claim that many pawnbrokers are networked and transfer items they suspect or know to be stolen to partnering brokers in other regions. While professional thieves may resort to eBay or flea markets, those wanting immediate cash are constantly on hand for the broker to do business with. Though the pawnbroker may be conducting legitimate business, critics often fault pawnbrokers for all too often abdicating their social responsibilities by buying stolen goods and not reporting suspected criminals. This article is about the online auction center. ... This article does not cite its references or sources. ...

Pawn shops in Asia

A typical Hong Kong pawn shop sign: a bat holding a coin.

Pawn shop in Hong Kong

Pawnbroking is a traditional trade of Thailand. In Hong Kong it follows the Chinese tradition, and the counter of the shop is typically higher than the average person for security. A customer can only hold up his hand to offer belongings and there is a wooden screen between the door and the counter for customers' privacy. Image File history File linksMetadata Download high resolution version (2560x1920, 1743 KB) Summary A sign of pawn shop Photography by en:User:HenryLi Licensing File links The following pages link to this file: Pawnbroker Metadata This file contains additional information, probably added from the digital camera or scanner used to... Image File history File linksMetadata Download high resolution version (2560x1920, 1743 KB) Summary A sign of pawn shop Photography by en:User:HenryLi Licensing File links The following pages link to this file: Pawnbroker Metadata This file contains additional information, probably added from the digital camera or scanner used to... “Chiroptera” redirects here. ... This article is about monetary coins. ... Image File history File links Download high resolution version (1600x1200, 298 KB) Summary Tram ways in Wan Chai, Hong Kong Licensing File links The following pages link to this file: Pawnbroker ... Image File history File links Download high resolution version (1600x1200, 298 KB) Summary Tram ways in Wan Chai, Hong Kong Licensing File links The following pages link to this file: Pawnbroker ...

The symbol of a pawn shop in Hong Kong is a bat (the animal) holding a coin (Cantonese: fuk shu tiu kam chin; in Chinese letters: 蝠鼠吊金錢). The bat signifies fortune and the coin signifies benefits. “Chiroptera” redirects here. ... This article is about monetary coins. ...

See also

• Consignment shop
• Lombard banking.

Consignment is placing a person or thing in the hand of another, but retaining ownership until the goods are sold or person is transfered. ... The Moneychanger by Rembrandt, 1627 For other uses, see Lombard. ...

Sources and external links

Wikimedia Commons has media related to:

Pawnbrokers

• This article incorporates text from the Encyclopædia Britannica Eleventh Edition, a publication now in the public domain.
• Roath's Pawn Shop: History of Pawnbroking.

Image File history File links Commons-logo. ... Encyclopædia Britannica, the eleventh edition The Encyclopædia Britannica Eleventh Edition (1910–1911) is perhaps the most famous edition of the Encyclopædia Britannica. ... The public domain comprises the body of all creative works and other knowledge—writing, artwork, music, science, inventions, and others—in which no person or organization has any proprietary interest. ...

References