Pawn Stats

• The first pawn shops emerged in ancient China more than 3,000 years ago.

• Today, there are more than 12,000 pawn shops operating in the United States alone.

• It is estimated that approximately 25 million Americans do not have a bank checking account. Pawn shops serve this population by offering a source of short- term loans.

• Pawn shops are often referred to as the “Lombard” in Europe, in reference to the House of Lombard, a prominent lending family in medieval London.

• More than 70 percent of all items pawned today are reclaimed.

• The average loan granted for a pawned item is $75.

• Most states have laws limiting the amount of interest charged on pawn loans.

• State laws mandate that customers pawning items provide detailed information including name, address, and date of birth, and show government issued ID.

• The symbol of the pawnbroker is three spheres suspended from a bar. Some connect this symbol to the Medici Family--legend has it that one of the Medicis working for Emperor Charles the Great killed a giant with three sacks of rocks. The three balls or globes later became part of their family crest, and ultimately, the sign of pawnbroking.

• Saint Nicolas is the patron saint of pawnbrokers; the symbolism of the three balls or spheres associated with pawnbrokers has also been connected with his gift of three bags of coins to the three daughters of a poor man so that they could marry.

Pawn Shop Statistics

Tired of the cold impersonality of banks and other financial institutions? Perhaps you should try your friendly neighborhood pawn shop.

The smoky, sleazy hock shop of Hollywood films and pulp fiction is becoming a thing of the past. Today's pawn shops are likely well-lighted places that employ high-tech computer software, attractively displayed merchandise and young, well-dressed employees. Although pawn shops are most likely to be found in low-income areas, they are clean and customer-oriented.

A report in Psychology Today relates an observation of five shops in different neighborhoods of a large urban area of California over seven months. Unlike the intimidating relationships we all have with commercial institutions, it was found that the new pawn shop offers a place where regulars are greeted by name and newcomers are made welcome. It has the easy warmth and informality of the corner barbershop or beauty salon.

Pawn shops are a combination of a friendly loan office and a retail store selling goods at rock-bottom prices. Where else can you get a loan of less than $225 at 13.3% interest for four months--and with a 10-day grace period? Interest rates for larger loans are comparable to high-interest credit cards. A typical loan is in the $40 to $60 range, made on jewelry and intended to tide the borrower over for a short period. The typical patron is a white woman, under 30 years old, and a repeat shopper.

Customers are most likely to come back for their jewelry and TVs or VCRs, and are least likely to get their clarinets, keyboards or skis out of hock.

WHO USES THE NEW PAWN SHOP?

Source: Pyschology Today