Whether you need a payday advance or just want some extra cash, pawning items is an excellent way to do so. However, some customers worry this isn’t as safe an option as borrowing from a traditional financial institution. Fortunately, pawnbrokers are regulated like any other lender. They must adhere to several federal laws, and some of these are designed to specifically protect, you, the customer.

3 Federal Statutes to Protect Consumers Dealing With Pawnbrokers

1. The Truth in Lending Act

Before completing your loan transaction, a pawnbroker is legally required to break down the cost of credit in easy-to-understand terms. They must also provide a disclosure statement that includes all of the information regarding your loan, including the annual percentage rate (APR), finance charges, payment schedule, and total repayment over the lifetime of the loan.

2. Equal Credit Opportunity Act

Although you might not realize it, without this act in place, sellers could avoid lending to you or stick you with discriminatory, unfair rates. Luckily, they are unable to base dealing with you or provide increased interest and finance fees due to gender, race, age, national origin, ethnicity, religious preference, marital status, or receipt of public assistance benefits.

3. The Bank Secrecy Act

To protect consumers from fraud or theft, pawnbrokers are required to keep records and file reports of transactions involving more than $10,000 or multiple loans that equate to this amount within a 24-hour window. Shops are also required to report any activity that appears to be suspicious, which is considered anything over $5,000.

When you want to ensure you are dealing with a high-quality pawn shop that follows federal regulations to the letter, stop by Moore Pawn & Furniture in Lincoln, NE. The store accepts a wide variety of items, including jewelry, electronics, and furniture, and offers cash loans of up to $50,000 to help when you need it. Call these pawnbrokers today at (402) 477-5116 or visit their website to learn more about their loan options.