What Is A Pawn Shop?

Welcome to Dillon’s Gold and Pawn!

What is a Pawn Shop?

The basic premise of a pawn shop or pawnbroker is simple. The fact is pawnbrokers existed long before banking institutions became an everyday part of our society. The pawnbroker has a license to loan money to consumers, just like the banker does. But the pawn shop is unique because the consumer is able to obtain a loan by simply leaving collateral (merchandise of some value) with the pawn broker for the amount of time that he/she needs use of the money (the loan). This is usually 30 days or less. If the customer repays the loan within the allowable time frame, the collateral (merchandise) is returned to the customer.

If the customer defaults on the loan (does not pay the money back) or does not extend the loan for a small fee, at the end of the specified time frame, the pawnbroker then keeps the collateral — and the customers owe nothing. The pawnbroker may then sell the merchandise (former collateral) to recover the loaned amount.

Unlike other financial institutions, leaving collateral with the pawn shop acts as the sole condition of the loan. The customer does not need to qualify for the loan by having good credit, a bank account, produce a current pay stub or provide any kind of references. All the customer needs to do is provide acceptable identification and collateral (merchandise of value) to the pawnbroker as protection against default on the loan.

Most states including Florida, regulate the pawn industry. These regulations protect both the customer and the pawn shops. At Dillions Gold Outlet, we support the pawn laws in Florida, and we will always remain in compliance.

Aside from being  Jewelry Buyers, we pride ourselves on being educated in all forms of the Pawnbroker industry as well as all collateral items that flow through our store. We are conveniently located in Lake Hamilton at the RED LIGHT. All Pawn transactions whether it be buying, selling or acquiring a loan must take place In-Store, however we will come to you in certain instances to see and evaluate items of collateral. For example, if you have multiple Large Items you need a loan on or an art collection your nervous about moving. This is based on a case by case basis so please contact Dillon for availability. Come in or call us TODAY! We are only a few minutes away.

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