Wisconsin lawmakers limit pawn shop operations

When individuals are down on their luck financially and face unexpected expenses, many choose to head to their local pawn shop to qualify for a short term lending package. These people can use their own items as leverage to take out money that can be used to pay off fees until a steady stream of income comes in. Pawn shops are present all over the country and have experienced a boon lately as more people become interested in the industry perhaps due to reality television coverage. However, some lawmakers are choosing to limit the options of citizens who need fast cash. Ashland City Council votes against pawn shop storage According to the Ashland Daily Press, lawmakers in the city recently voted against a permit allowing a local pawnbroker to display his larger items in front of Bay Area Pawn shop. Frank Kostka will have to store his boats, trailers, vehicles and other items elsewhere. The reasoning was to keep the store appearing aesthetically pleasing, the source explained. This may affect the business at Bay Area Pawn, as Kostka offers many larger items that cannot fit in the store. Customers may be forced to go to another location if they want to purchase these items, or Kostka may have to stop buying and taking in these items as collateral. The Ashland Daily Press reported there could eventually be modifications to the permit to allow for more specific regulation of what can be showcased outdoors, so that the yard does not simply become a storage area. The newspaper suggested Kostka is also considering tailoring the regulation to specify items can only be placed under the eaves of his building. Expansion limited in other ways The operations of pawn shop owners have been restricted by law makers in other ways recently. For instance, according to the Daily Herald, the Des Plaines City Council in Illinois voted to prohibit an amendment to the zoning code that would have allowed pawn shops to take up residence in the C-3 general commercial district. Currently, the newspaper reported, these types of companies are not allowed to open a new location within city limits. There is only one shop in operation in Des Plaines, severely limiting the short term loan options available to residents. Pawnbrokers trying to convince the councilmen noted that, according to National Pawnbrokers Association findings, only 1 percent of all stolen merchandise is sold at pawn stores, the Daily Herald said.