How Long Do Pawn Shops Hold Items Before They Are Sold?September 1, 2021 2:38 am Leave your thoughts
In addition to buying and selling items at pawn shops, you can pawn items too. This process involves putting up an item as collateral for a short-term loan, typically for a modest amount of money.
You’ll usually have 30 days to pay off the loan against your item, and will be required to either extend it or default on it by the end of the contract. Several factors go into how long pawn shops hold items before selling, and this article will cover the reasons why pawn shops hold items.
What are the three possible outcomes of a pawn loan?
We touched on this above, but if you pay back your loan on time with interest, then the item you put up as collateral can be returned to you. If you can’t pay by the end of the contract, you can usually work out an extension with the pawn broker if you pay the interest on the original loan. However, you might need a new contract or be forced to pay a higher interest rate on this extended loan.
The third outcome is that you can’t pay the loan back and don’t file for an extension, meaning the item you put up as collateral is now owned by the pawn shop. They’ll likely sell it to cover your loan, but usually not right away.
Is there a grace period on your items if you can’t pay back your loan?
Usually, yes, but this grace period can vary wildly by state law and by individual pawn shop. It could be as short as a few days, but some states require the item be held for a full year. Before entering any type of contract, be sure to know your state’s laws, the policies of the individual pawn shop and any details that might be written into the contract.
What if you’re simply selling your item? Is there a waiting period then?
Again, yes, but this time for different reasons. Pawn shops are highly regulated because people think they can just hawk stolen goods there. That’s a myth, though, because pawn shops are in daily contact with law enforcement and are required to document in detail the identifying information of each seller and each item they buy, sell or pawn.
The waiting period and policy of pawn shops holding items is in place so law enforcement can run a check on the item. This ensures it wasn’t recently stolen and prevents someone from trying to quickly flip it to make a few bucks. The waiting period can range from a few days to two weeks.
Call for pawn shop services today
As you can see, there are valid reasons for pawn shops to have waiting periods and grace periods before they sell various items. Now that you know how long pawn shops hold items before selling them, pay a visit to Sydmor’s Jewelry and Pawn Shop. We take pride in helping our community by offering a necessary service that’s accessible to all—we’d love to talk to you about buying, selling or pawning any items!
Categorised in: Pawn Shop
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