close print view House Bill 6029 (S-1) Senate Commerce and Labor
of Labor & Economic Growth supports the bill. Background:
Pawnbroking is one of the oldest businesses in the world. There
are records of pawn shops in China as far back as 3,000 years
ago. The story that Queen Isabella pawned the crown jewels to
finance Columbus’ first voyage to the New World is probably a
myth, but it underscores the importance of pawnbroking in the
Middle Ages. Pawnbrokers lend money on items of value, including
jewelry, televisions, musical instruments, and bicycles. The
loans are based entirely on the value of the collateral.
According to the National Pawnbrokers Association, the typical
loan is small, averaging less than $100. The average loan period
is 30 days. Although the collateral may be foreclosed if the
loan is not repaid within the specified time, usually 3-4
months, 70-80 percent of the loans are repaid. Because pawn
contracts are secured, no-recourse loans, the customer decides
whether he or she will redeem the it