What are pawnshops?

What are pawnshops?

Pawn shops are places where you can get a short-term loan. You can pawn an item in exchange for a loan. You drop off the item and they give you cash and a receipt that you should bring when you return. Most people pay off the loan and get the collateral back, but if they can't, the pawnshop can sell the items to recoup the investment.

The oldest pawn shops are the Nacional Monte de Piedad, the Where Foundation, and Montepío Luz Saviñón, but there are many others, national or foreign, that operate differently and under different procedures than those of these institutions.
What is the pawn procedure?

1. Take your item to a pawn shop.

2. A qualified executive will review your garment for free.

3. They analyze with you the best loan option for you.

4. Present your IFE to make your loan slip.

5. Go to the cashier and receive your cash.

6. Make the payments marked on your ballot.
proficient

To pawn it is necessary to wear a garment in good condition so that an expert can value it. With this, the amount of loans that can be obtained for the pledge is established. The pledgee may accept or reject the established amount, but if he admits it, he will proceed to prepare his pawn ballot,

which contains his general data, a detailed description of the pledge, and the conditions for its recovery. In many cases, identification is required. The term of the contract varies between three to five nominal months.

The pledge loan contract works as an adhesion contract through which the pawn shop and the person applying for the loan are subject to rights and obligations. These agreements should ideally be registered with the Federal Consumer Protection Agency (Profeco).

Therefore, it is highly recommended that the user verify that the contract used by the pawn shop with which he decides to apply for the loan is duly registered.
The client, to recover the pledge, must carry out the payment agreed on the pawn slip,

which includes the loan plus the interest generated and the corresponding to storage and insurance costs. It is necessary to carry out this procedure on business days, before the deadline marked on the pawn slip, and thus prevent the garment from going to the showcase and being marketed.

In case the client does not have the required amount to carry out the garment, he has the option of obtaining a new term by means of the endorsement. To do this, it must be presented, usually, two business days before the deadline that marks the ballot and pays only the interest generated, as well as storage and insurance expenses; With this, a new pawn slip is drawn up and the loan term extended.

It is a simple procedure, but it always implies a profit for the pawnshops.
Pledge: it is more than pledging one or more of our assets as an additional form of payment guarantee, generally before a lender. It is a formula used in banking to secure financial operations,

for example, in loans when the applicant's profile does not offer all the necessary guarantees that they will be able to pay back the borrowed money. Thus, in the event of a default by the client, the entity could exercise its right to keep the pledged asset and thus recover its money.

Why would someone go to a pawnshop to get a loan?
pawn procedure

It is a fast, convenient, and confidential way to obtain loans. In the short term, the need for cash can be met without a credit check and without legal consequences if the loan is not repaid.

How much money will I get from the pawn?

The amount that we are going to get with the pawn varies according to the value of the item. It will also depend on other factors, such as demand and the conditions of the item. Also, not all pawnshops will offer you the same price.

To determine the value of the property, pawnshops rely on the value of the item over the current appraised value, its condition, and the ability to sell the item.

How can I be sure that the merchandise I bought from a pawn shop is not stolen?
Less than 10% of pawned merchandise is identified as stolen goods.

This is achieved because customers must provide positive identification as well as a full description of the merchandise. After this information is passed on to the police, this reduces the chances that a thief will bring stolen merchandise to a pawn shop.