Idaho requires pawnbroker licenses must be obtained through city or county officials. Licenses are not obtained at State level.
As with driving, flying a drone, opening a salon, there are all kinds of laws and regulations a pawn shop must follow. City, state, and federal laws regulate pawn shops.
State and Federal Laws govern Pawn Shops
The pawn industry is highly regulated. The Truth in Lending Act, Equal Credit Opportunity Act, and the Federal Trade Commission rules on Data Privacy and Safeguard of Consumer Information all have defined rules the shops must follow.
Part of the regulations is the age at which a person can pawn or sell a valuable item to a pawn shop. In Idaho, the age of majority is 18, and this is the age a person can legally engage in a contract with someone else. Because pawning an item includes engaging in a legal and binding contract, 18 is the age you have to be to pawn an item.
If someone wants to sell an item to a pawn shop in Idaho, they need to be 18 years old.
The reason is because minors don’t have the same understanding of the law as adults, and thus can’t sign contracts. A child can not pawn an item. For this reason, if minors sign contracts, the contract is not valid, and the minors are not obliged to comply with the contract.
How Does Pawning Work?
A pawn loan is a short-term secured loan. The loan requires a signed contract and something of value to pawn.
Pawn shops consider gold, silver, jewelry, an engagement ring, name brand tools, electronics, luxury handbags, designer watches, and other valuable items as collateral for potential short-term loans when money is needed.
Some pawn shops have an online quote option, which gives customers a general idea of what their item may bring. Once you’ve decided to use a valuable for collateral, you can visit the pawn shop, and they will ask you some questions, appraise the item, and authenticate it.
The questions pawn brokers ask are to determine the ownership of the item and ensure it wasn’t stolen. Pawn shops work closely with law enforcement to decrease crime and reduce theft.
As a customer, you must have a valid government issued ID to complete the confidential process. Most people are pleased to know that pawn shops don’t complete credit checks, because the value of the collateral guarantees the loan. If a pawn loan isn’t fulfilled and paid in full, pawn shops don’t report to the credit bureaus.
In Idaho, you have to be 18 years old to sell to a pawn shop. This again is due to the difference between an adult’s understanding and a child.
When you sell an item, you have to be the rightful owner of the item. Stolen merchandise is not tolerated in pawn shops.
Unlike a pawn loan, when a pawn loan is paid in full, the item is returned. Selling an item to a pawn shop is a transfer of ownership of that item. Instead of losing an item that you have a level of sentimental value for, consider pawning the item so it can be returned once the contract is fulfilled.
Pawn shops still require you to have a governmental issued ID to sell to them. State issued picture ID, military ID, Passport, Alen Registration Card, and Driver’s License are all examples of ID that can be used.
Should Younger People Pawn?
Pawn shops offer people of all social economic status, all ages, and from all walks of life a viable way to get small loans without a credit check. Pawning something requires a legal contract. By using the value of a piece of personal property sought after by a pawn shop, people can use pawning to keep people out of financial problems. There are inherent risks with all things. All people, young or old, should be aware of risks. An example is losing a valuable item because you defaulted on the pawn loan. There are also fees and interest associated with engaging in a collateral loan.
The key is not to haphazardly pawn and work with a trustworthy pawn shop like Idaho Pawn and Gold.
Idaho Pawn and Gold
Idaho Pawn and Gold is a pawn company with three shops in Meridian, Boise, and Nampa, Idaho. They understand that people may need extra money from time to time, and using a valuable item to get the money needed is an option.
They have zero tolerance for stolen goods and will explain the process of pawning, selling, and buying from a pawn shop. Like many pawn shop owners, Sam Reading, the owner of Idaho Pawn and Gold, wants to be part of the community and help people with short-term loan options should the need arise.