A little lesson about loans
Every now and then, from time to time, emergencies pop up, the unexpected happens, or sometimes that paycheck you are counting on is delayed. The point is, it happens to everyone…you need just a little help to get by. We’re glad to be there to help with our short-term, collateral-based loans, as you know. The rules behind these collateral-based loans are all set out by the Florida State Pawnbrokers Act, but let’s be honest here…that’s a pretty dry read. I’m getting kinda bored and sleepy just mentioning it.
Lucky for you, we’re going to distill it down to the basics.
We definitely want to point out that this should be looked at as supplemental to the information in the Florida State Pawnbrokers Act, and if you have any questions or need any clarification on anything mentioned, you really should read through the Florida State Pawnbrokers Act or please feel free to contact one of our associates at either location, drop us an email, or even give us a call.
Everyone buckled in? Okay, let’s go!
Who Can Get A Loan?
Anyone that is of legal age (18 or over), and has a valid government-issued picture ID. That’s it. No background checks or credit checks or cross-referencing or asking for someone to cosign. Easy, right?
What Types of Identification Can Be Used?
The most popular are state-issued drivers licenses or identification cards, but passports work as well. It is also important to note that they must be valid and not have expired!
What’s the cost?
The Florida State Pawnbrokers Act sets a standard maximum finance charge that is of 25% of the loan amount every 30 days for the first 60 days…meaning a $100 loan would cost $125 within the first 30 days, and $150 from day 31 to day 60. After the 60th day, that finance charge is prorated…meaning instead of that full amount being added, it is broken down over the next 30 days and added a little bit each day. This saves you more money the earlier you redeem your loaned items.
Any Other Costs?
When you take out a collateral-based loan, there is a sheet that is printed out with your information along with a description of the item or items you are loaning against, as well as the loan amount, finance charge, and the dates of the loan. You are required to sign and place a thumbprint at the bottom of this sheet, stating that you agree by those terms, the stuff listed is yours, and that you understand everything on there. That’s basically the first part of the contract…the second part of the contract is the copy of that sheet that you are given. Be sure to bring that back! You will need a copy to redeem your items, and can be charged an additional fee if a copy has to be reprinted for you.
How Do I Get My Stuff Back?
As long as your loan is still active and you’ve kept up on the payments, you can redeem your items at any time! Just bring in your copy of the pawn agreement (the second part of the contract, remember?) and again, a valid ID. In nearly all cases, only the pledgor, meaning the person who’s name is on the front of the sheet, can redeem the item.
What Are Those Dates?
There’s sometimes a bit of confusion about all the dates on the pawn forms. The Maturity Date is the 30 day date where the loan matures and another finance charge is then applied to the amount due. The Default Date is the 60 day date, and at that point the item is in danger of defaulting. Getting your item out by the maturity date will save you money, but if you can’t make it by then, you have another 30 days until the default date, got it?
How Can I Pay On My Loan?
Payments can be made in the amount of the finance charge or for the total redemption amount only! The Florida State Pawnbrokers Act does not allow partial payments or payments made towards the principal (the amount you got the loan for). The good news is that every time you pay that finance charge amount, it extends the loan for another 30 days.
Anything Else I Should Know?
This is a very simplified version of the Florida State Pawnbrokers Act, and really covers some of the most common questions and issues that we’ve found that people have. Again, we invite you to come in to TB Goods and speak with an associate about the terms of collateral based loans. Being knowledgeable about pawns can help save you time, money and trouble later if something comes up and you need that bit of help…and you can be sure that TB Goods will always be there to help!