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Peninsula Pawn Answers Our Customers’ Questions

Peninsula Pawn wants you to feel comfortable visiting our pawn shops in Delaware and Maryland for any reason. We have loans available to help people cover their financial needs with reasonable interest rates, and we accept a wide array of items our customers wish to pawn for money. Our locations have plenty of merchandise available for shoppers to peruse and discover new keepsakes for their collections. We offer honest prices and fair treatment to everyone who comes into our judgment-free shops, ensuring they always have a positive experience. Part of offering superior service is keeping you informed about our business, so we have answered a handful of common questions we receive. If you need further details or have other questions, we will gladly help you.

Frequently Asked Questions

How does a pawn work?

A pawn is another term for a collateral loan. Pawnbrokers lend money on items of value ranging from gold and diamond jewelry, musical instruments, televisions, electronics, tools, household items, firearms, and more. Some pawnshops may specialize in certain items. Loans are based on the value of the collateral. When a customer pays back the loan, their merchandise is returned to them. A customer may also choose to surrender your collateral as payment in full. Pawnshops may offer extensions/renewals (where permitted by state law).Please check with the store manager.

Why would someone go to a pawnbroker to get a loan?

Pawnbrokers offer the consumer a quick, convenient and confidential way to borrow money. Short-term cash needs can be met with no credit check or legal consequences if the loan is not repaid. Pawn loans do not cause people to overextend credit or go into bankruptcy. Please see the store manager with more questions.

How much should I expect for a loan on any item?

Loan amounts vary according to the value of the item. There is no minimum dollar amount allowed on a pawn transaction but the maximum amount may be set by state pawn laws. Your loan amount will be determined according to other factors as well such as demand and condition of the item. Not all pawn stores are the same and prices will vary.

How do you determine the value of the item?

Pawnshops base the value of the item on the current assessment value, its current condition, and the ability to sell the item. Pawnbrokers use research tools that they have at their disposal to determine an item’s value and get you the most money for the item. The assessment process varies depending on the type of item—for example, jewelry is evaluated differently than a DVD player. All items that pawn shops buy or pawn are tested to ensure that it works properly.

How can I be sure the merchandise I purchase at a pawn store isn’t stolen?

Less than one-tenth of one percent of all pawned merchandise is identified as stolen goods. That’s because customers must provide positive identification and a complete description of the merchandise. This information is then transmitted daily to law enforcement, which dramatically decreases the likelihood that a thief would bring stolen merchandise to a pawn store.

Are pawnshops regulated?

Yes, Pawnbrokers are governed by all of the major federal laws that apply to entities designed as financial institutions. The federal laws that regulate the pawn industry are Patriot Act, Truth in Lending Act, Equal Credit Opportunity Act, as well as Data Privacy and Safeguard of consumer information as part of the Federal Trade Commission (FTC) Rules. Pawnshops that deal in firearms are regulated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Pawnshops may also be Federal Firearms License holders. States have regulated the pawn industry for decades, and most pawnbrokers are licensed and regulated by local authorities as well.

Do pawn customers enjoy the same protections under federal law that customers of other financial institutions enjoy?

No. Pawn transactions are the only type of consumer credit that requires reporting to local law enforcement agencies. In many states, this reporting is required daily and must include extremely sensitive personal information about the consumer (i.e. ethnicity, gender, address). Much of this information qualifies as “non-public personal information” under federal privacy law and is entitled to protection as such.

Are pawns rates excessive?

No. To provide their service, all lenders must charge rates commensurate with the size and duration of the loan, collateral, risk, and recourse.

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