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The actual shop is twice as big as the part you walk around in. The unseen part is the storage area for all of the items in pawn. Let‘s say that you pawn your TV -- the pawnshop has to hold it for a minimum of 90 days. For those 90 days your TV sits in storage. This allows for any claims of stolen property to be investigated by the police. In North Carolina the maximum interest rate that a pawnshop can charge is 2 percent per month or 24 percent per year. That‘s about the same as some credit cards. However a pawnshop can also tack on other charges such as handling appraisal storage and insurance fees. The maximum allowed charge for these additional fees is 20 percent per month. In practical terms this means that the maximum loan that someone can get at a North Carolina pawnshop is about $500. Even with this regulated fee structure the interest rate still works out to well over 100 percent annually. |
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