Pawning is as old as the need for instant cash. Some people find themselves caught in one problem and that is the need for fast cash. The quick solution, to pawn personal items of value for a cash loan to meet the budget and one's financial needs.
The word "PAWN" from the Latin word "PATINUM" meaning clothes or clothing since, during the ancient times, clothes were often the most valuable items they possess.
Pawnshops has its own story and history
Record shows that it is the Chinese that started the practice of loaning and pawning since the Western Han Dynasty in 206 BC.
It was back in the middle ages that Norman Conquest introduced the transaction from China to England to which the term "Lombard" eventually becomes synonym to the word "Pawnshop".
It is considered as one of the oldest financial institutions especially for people who periodically experience an unexpected need for short-term funds.
It was said that pawning was poor people's way of making it through the week. However, did you know that even famous people and whose on the spotlight and showbiz had an experience pawning their one most priced stuff to all of their possessions?
From King Edward III of England who pawed his jewels year 1388 to finance voyage war of his land against France.
Queen Isabella of Spain has also used her signature jewelry to help fund Christopher Columbus on his expedition to the world.
Lindsay Lohan pawned her designer clothes for $14,000.00
Burt Reynolds lets go of his 1988 Golden Globe Awards in exchange for cash.
Carly Rae Jepsen experienced pawning for a bag she paid for $25.00
Toni Braxton pawned the ownership of her best song hits for $20,000.00. All that was left to her was her was the music rights of "Unbreak my heart".
Annie Leiboutz pawned all photography materials she has ever produced.
Willie Nelson lost all his possessions to finally pay his multi-million tax bill/
Billy Sims also pawned his signature items including football helmets and his trophies. The act made him out of debt before he left New York.
In today's time, society still experiences the sudden need of pawning. Pawn loans sustain most people's life from food, electricity, gas, to house rents.
Compare to the first pawnshop store design, recent architectures are now way attractive, safer and welcoming to both costumers and clients as well as to the employees.
From the time being, most pawnshops are family owned, operated and supervised. One of the goals was for one branch to eventually stand independently that it can produce funds enough to branching out to another area eventually.
PROCESS:
Decide which item of value to pawn.
Pawnshops officers will extend an estimate value of item worth.
Negotiation.
Fill up forms for documentations.
Take the cash and leave the item as collateral.
Bear in mind that one must have a presence of mind all the time especially during the transaction to detect any falsification and avoid tempt of being take advantage of.
REGULATION:
The pawnbrokers must disclose all credit terms including interest rates, delay fees, other charges as well as the date of coverage for the agreement. As per TILA (Truth in Lending Act) all terms should be written, explained and signed by both parties.
Establishment is required to protect our personal information such as customer's name, contact numbers, address, especially bank account numbers and credit card informations.
Federal laws safeguard the inclusion of background check requirements for both buyers and sellers.
Report cash liquidations to the Bureau of Internal Revenue accordingly.
Follow cap or limit of standard interest rates
Record-keeping of detailed records of items pawnshops will buy or take as collateral. Up to the smallest detail like model and serial numbers, brand name; precious metal type, size, color and gemstone descriptions.
TRIVIA
Like all other occasion and celebrations, Pawning has also a patron saint names Saint Nicholas also known as Sta. Claus.
Yes! Christmas and pawnbrokers have the same Patron!
Telltale says that Saint Nicholas have given 3 small bags of gold to an unfortunate man for him to pay his debt, made him no longer have to sell his daughters to slavery and save them from prostitution.
Whilst Sta. Claus' hat, socks, sleigh and Christmas tree are all Christmas' symbols, the 3 gold balls has been the representation of 3 bags of gold Saint Nicholas gave to the peasant that night.
So there you have it. So the next time you go broke and you need to run to the nearest Pawnshop. You now know the history and some trivias about pawning , and should you want to have an ice breaker with the hot person beside you while waiting in line in the Pawnshop you're covered.
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