Are there any regulations pertaining to Pawn Shops? 25% interest per month on a loan? That's got to be illegal. State of Missouri also says that a license to loan is required. Anybody ever see one?
You think crack smokers are the only one's with financial problems. Get your head out of the sand. You've apparently never had SERIOUS financial problems. I mean folks with medical emergencies, or that have had some traumatic loss. These places are little better than loan sharks that prey on the poor that banks and credit companies won't help because of their poverty.
By the way, I have never done illegal drugs, and I am not the victim. I'm just a witness that has researched this after seeing a transaction in one of these shops.
You're not getting the picture.#1, it's illegal for a bank or a finance company to charge this rate of interest, so how do a bunch of unlicensed yahoo's get away with it.#2, the only reason someone would do this is not because of choice, but because of lack of choice. And there again, this is not about substance abusers. it's about poor families and others that have emergencies and have no where else to go. A situation you guy's have apparently never been in. FINALLY, according to MO Dept.of Finance Administration, you must obtain a "license to loan" to lend money in the state of Missouri. I would be willing to bet these guy's don't even know what that is.
Apparently your not getting the picture. Banks are regulated a finance company is not. Go into Security Finance and see how much the interest rate is...outrageous. Anyone who is federally backed must adhere to these regulations they do not apply to PRIVATE lenders. Stop worrying about pawn shops and get an education.
Opening a pawn shop is not as easy as one would think. So I guess what they are allowed to charge is legal. Sorry...
How to Open a Pawn Shop
If you are interested in opening a pawn shop, you'll be glad to know that this career option has been around a long time. For those who can't secure a bank loan and those who don't have the time, visiting a pawn shop is a perfect solution. To start the business on your own, you'll need the proper licenses and a full understanding of the business.
Get Your License
Understand the pawn shop business. A pawn shop operates on a short-term loan basis, and the amount of the loan is dependent on the value of the goods brought to the shop. A client will bring an item to a pawn shop as collateral for a loan, and the pawnbroker will assess the value of the item to determine the amount of the loan offered. If the loan is not repaid, the item remains in your possession.
Know that nobody can operate a pawn shop without a license. In order to get one, you will need to contact your state's Department of Financial Institutions and submit an application to the non-depository division (see Resources for an example).
Pay the fee to submit your application. It will cost around $1,500 and up to apply with the Department of Financial Institutions.
Contact co-workers (particularly those in financial institutions) and have them write letters of reference to include as a supplement with your application.
Get a letter from a CPA, or Certified Public Accountant, which includes a statement of your liquid assets and net worth.
Visit the police station to get your state's directions on pulling your criminal record. You will need to access your file for every state in which you've lived permanently, and you can call the stations in other states as necessary instead of visiting. You will most likely need to fax your permission to pull your file to each office.
Request a copy of your business and personal credit report from one of the three major credit reporting agencies like Experian (see Resources).
Submit the supporting documents for your pending application. You will need to include the document from your Certified Public Accountant, a credit report for your business, written proof of your financial expertise, a criminal record report, and your letters of reference.
Await your license approval for your pawn shop. You may need to submit other paperwork as required, but you should be on your way to looking for pawn shop locations in no time.
Im sure you can use an i.d.
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