Pawnshops provide people collateral loans, money in exchange for personal property that can be retrieved after paying the loan with interest.
Due to the current economy people needing money and are turning to pawnshops as a way of snagging fast cash. The basic idea of pawnshops is to loan people money.
"We have noticed a change in our business because of the economy. People are in difficult times and need money," says Juan Atondo, an employee of EZ Money Pawn at 3030 South Sixth Ave.
"I've pawned items a couple of times. I've pawned televisions and game systems," says customer Rosalina Viramontes.
Viramontes explains, "It's a difficult time right now. The economy is bad and the holidays are coming up. It's a good way to get instant cash."
What is happening with a growing pawn business in South Tucson is occurring nationally, according to the Associated Press. The National Pawnbrokers Association says its members are reporting record growth as a result of persistently high unemployment, coupled with soaring gold and metal prices.
"The first thing we ask customers is if they want to pawn or sell an item. If they want to pawn an item they can borrow money by putting up something they own as a collateral," says Atondo.People usually pawn family heirlooms instead of selling them. The pawning process can be trying for people. Atondo says, "I've seen people get emotional about pawning family jewelry."
Once you repay the loan plus interest you can receive your collateral back. According to state law, the length of all pawn transitions is a minimum of 90 days, a longer term may be contracted between the pawnbroker and the customer.
At the end of 90 days customers can pay the interest and retrieve their item back, pay a monthly fee and extend their loan or do nothing and the pawnshop is able to keep and sell your item without it affecting a customers credit.
The Associated Press reports that consumer advocates say the development is concerning because the interest rates on loan from pawn shops can be as high as 20 percent a month.
For the pawnshop to decide the price and worth of an item they look up the value of the item on the Internet.
We look up the item on eBay or Google shopping and we give them half the price that it's worth. It depends on the condition of the item. Sometimes if the item is in really bad shape we don't have to give them any money for it," says Atondo.
"At the end of each day we are required to turn in our receipts to leadsonline.com," says Atondo. Leadsonline is an online investigation system used by law enforcement to track stolen items.
If the police believe that an item is stolen from looking at the receipts they contact the pawnshop right away. "The police will fax us and tell us to hold the item. Sometimes they ask us to take pictures. If the item is stolen we lose the item," says Atondo
