Why do Pawn shops have such high finance charges?
a. At King Pawn we balance a number of factors when providing a loan- the amount, duration, collateral, risk and recourse. Generally our loans are small dollar and/or short duration loans. The item that is pledged is pledged is the only collateral and King Pawn is liable for the replacement value if something happens to the item while it is in our care. There are no hidden charges as with other lending institutions. If you have ever had the unfortunate experience of writing a check that was returned for insufficient funds, the charges are steep. For example: Bounce a $20.00 check and there is usually a posted fee charged from the store of $20.00. Then there is the initial return check fee charge from the bank, again another $25.00, and for every day that it remains unpaid, the fees continue to add up. It can very easily and quickly add up to $60-100.00 in fees for a $20.00 check if left unattended. If you do the math and catch the problem early (3days) you will only be paying 2700% in
