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Frequently Asked Questions <br />What type of merchandise do pawn shops, take in? <br />'Rdawnbrokers buy or lend money on any item of value. Typical items includ�e gold�., jewelry., <br />musical instruments., consumer electronics., tools., and household items. <br />What is requuired to get a loan? <br />In ad�d�ition to + isclosing terms of the loan., req uire+ by the federal Truth in Lending Act., <br />state and local laws require additional information. In Minnesota and the majority of states., <br />this includes: <br />1. Name and ad�d�ress <br />2. customer's date of birth <br />3. Gender and ethnicity of customer <br />4. Govern ment-issue+ form of personal id�entification <br />5. The d ate and time of the transaction <br />6. A d�escription of the collateral., with serial number if available <br />N"I V I <br />• 1 9 -- =-i <br />All pawn shops have systems., reporting and training that nearly eliminates the receiving of <br />stolen items. On a d�aily basis in Minnesota as well as most other states., pawn shops <br />provid�e police with an encrypted�., d�etailed� electronic report containing d�etailed� information <br />on all merchand�ise taken. This d�ata is then matched against databases to identify <br />potentially stolen merchandise. When found�., stolen property is confiscated by police and <br />returned to its rightful owner. Pawnbrokers are trained to look for signs of stolen property to <br />avoid these costly mistakes. These confiscations result in a d�irect loss of loaned fund�s and <br />collateral by the business. <br />In ad�d�ition to reporting to police on a d�aily basis., as req�uired� by law., all items taken in ar <br />held for some period of time (typically 30 to 90 d�ays) to allow the police to check thei <br />record�s. Anyone who sells., trad�es., or pawns any item must show a valid governmen <br />I <br />issued picture ID (Driver's License., State Issued ID., Military ID., etc) in ord�er to complet <br />their transactions. This is a major deterrent as criminals do not wish to identify themselvesl <br />What types, of regulation and compliance apply to pawn shops? <br />Pawnbrokers are governed by all of the major laws that apply to other entities designated <br />as "financial institutions/1 under federal law. These laws include: <br />0 The USA Patriot Act <br />0 The Bank Secrecy Act <br />0 IRS regulations on reporting of certain cash transactions <br />0 The Trading with the Enemy Act <br />0 The Gramm-Lech -Bliley Financial Services Modernization Act <br />0 The Truth -in- Lend ing Act <br />Pawnbrokers take their federal compliance responsibilities seriously. National Pawnbrokers <br />Association (NPA) Members receive training and other resources that outline how to comply <br />with federal currency transaction and suspicious activity reporting requirements and with <br />Treasury's Office of Foreign Assets Control regulations. <br />Pawn loans are the only type of customer - credit transaction in which every transaction is <br />reported to local law enforcement agencies. This is true in every state. Transactional reports <br />