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Brokers paying thousands because of new law

Sep 27, 2012 Quinn Thomas

Brokers paying thousands because of new law
Partly because of increased notoriety due to reality television shows, the pawn industry has been booming for the past few years. Many people, especially those who cannot qualify for a traditional loan or open a line of credit, pursue this short term lending option. Because the sector is bringing in increased amounts of money, however, criminals have taken notice and focused in on stealing from shops.
 With this in mind, many pawn brokers are working with local law enforcement to prevent crimes from happening in the first place. A number of cities and states have embraced laws that establish databases to share data from each transaction, as well as seller or pawner information with police. However, for some shop owners, preventing theft is coming at a large price. New Hampshire brokers suffering from fees
Like owners in many other areas, brokers in Manchester, New Hampshire, are now legally required to use a database shared with the local police department to record transactions, according to the Union Leader. Additionally, the shops now have to hold on to all items for at least 30 days to make sure no one comes looking for missing items. However, the source reported for every entry in the records, owners have to pay $1. This can get pricey if shops see a lot of transactions. The Union Times said pawn brokers are also feeling the effects of the new regulation in their wallets because of the storage clause. The unidentified owner of Manchester Music Mill told the newspaper he has to pay $1,100 per month for a new storage facility to house the items he can't sell for 30 days. The increased sales seen in this area during the winter holiday season might cause the downfall of a number of pawn shops, the source suggested. Benefits of the system
However, there are definite advantages to having a database in place to stop thieves. Lawmakers in Maryland are also requiring area pawn brokers to record their transactions, according to The Associated Press. Shop owners told the news provider that the technology helps to identify possible criminals who try to sell or get loans on goods they have stolen. In Maryland, owners have to enter specific pieces of information into a spreadsheet, including the name of the client, driver's license number, physically identifying traits, merchandise serial numbers and detailed descriptions of goods. Sergeant Joe Hayer told the AP that, especially in comparison to older modes of recording transactions, this strategy is very helpful in saving money for brokers and catching criminals for police.