There are many misconceptions about the pawnbroker industry.  The following facts address much of the fiction about how we do business, the cost of our service, and the customers we serve.

FICTION: Pawnbrokers lend only to the unemployed and the unbanked.

FACT: Individuals who use pawnbroker services are hardworking citizens with jobs–most of whom have bank accounts.  These individuals sometimes need a small short-term loan to help make ends meet.  Eighty percent of our customers are employed; 82 % of them have a high school diploma or GED, the average age of our customer is 42, and more than a third of our customers own their own home.

Further, small business owners frequently use our services when they encounter cash flow problems and need money for such things as payroll.

FICTION: Pawnshops are the largest buyer of secondhand goods.

FACT: Not true.  Locally, pawnbroker transactions make up less then 10% of the secondhand goods buyer market.  With the growth in Internet buying, online auction sites like E-Bay, generate more than 99% of secondhand goods buyer activity.  However, law officials do not monitor such sites closely, which makes them ideal vehicles for thieves to unload stolen goods.

FICTION: Pawnshops are a haven for criminals looking to unload stolen goods.

FACT: This is simply not true.  Less then one-half of 1% of items brought into pawnshops are stolen.  In fact, pawnbrokers, including Top Dollar Pawnbrokers, work closely with local police to retrieve stolen goods and help curtail criminal activity in the community.  For each transaction, we require two forms of ID as well as a thumbprint.  Each day, Top Dollar provides local police with detailed descriptions of all transactions which are videotaped, including model numbers, serial numbers, and customer data.  If an item is stolen, the police confiscate it.  Top Dollar then goes to court to help prosecute the criminal!

FICTION: Pawnbrokers charge much higher fees than other short-term lenders.

FACT: Typically, pawnbroker fees are less than those charged by other short-term lenders.  Our average loan is $72, which carries a fee of about $14.  The larger the loan, the lower the fee.  In addition, consumers choose pawnbrokers as a lending option to avoid higher fees such as re-connection fees charged by utility companies and bank NSF fees, which range from $27 to $35.

FICTION: Pawnbrokers are not good corporate citizens and don’t give back.

FACT: Again, not true. Pawnbrokers are responsible and engaged members of the community. At Top Dollar, we make regular donations to local organizations, including the Children’s Cancer Recovery Foundation, the Katie Able Foundation, local churches, public schools, as well as police and fire stations. In addition, to promote reading among children who live near our store, we created the Children’s Book Corner, an in-store bookshelf with loads of free books for neighborhood kids to read and enjoy.

Who Uses Pawnbrokers?
Pawnbroker customers are hardworking consumers who typically lack access to traditional short term lending options. These individuals often live paycheck to paycheck and experience cashflow problems from time to time. Pawnbroker loans are used to meet cashflow needs mainly brought on by unexpected financial emergencies, including medical expenses, home and car repairs, childcare expenses, as well as other household necessities such as utility payments, rent and mortgage payments.
At Top Dollar, our average customer is 42 years in age and obtain loans averaging $72.

The Lending Process
Pawnbroking is society’s oldest lending institution that dates back to early Greek and Roman civilizations. The lending process is simple and straightforward. Customers present their own personal property as collateral to obtain small short-term loans. The nature of the collateral presented includes everything from computer equipment to bicycles to jewelry. The collateral property is available for redemption until the expiration of a contract. When the customer is ready to redeem the loan, his or her property is returned upon repayment of the loan and a small fee.
To avoid lending against stolen goods, pawnbrokers are required to verify the identity of each borrower by scanning a government issued ID such as a drivers license, collecting the borrower’s thumb print, and videotaping the transaction.

Credit background checks are not required to obtain a loan, nor are there credit consequences to the borrower if he/she decides not to redeem his/her collateral. Items that are not redeemed are sold at an affordable price to retail consumers.

Contract Terms & Fees
Terms and conditions specified in pawnbroker contracts, including the interest rate, are regulated by the state. In Maryland, contract periods are limited to 30 days with the option to extend the contract.

The state of Maryland also mandates that pawnbrokers collect the following information from consumers who enter into a pawn transaction:

• Name and address;
• Date of birth;
• Gender and ethnicity;
• Government-issued form of personal identification;
• Date and time of the transaction; and
• Description of pawn items, including serial and model numbers, and identifying markings.

Federal Laws & Industry Regulation
To protect consumers, the pawnbroker industry is highly monitored and regulated. A number of federal laws govern how we do business, including:
• USA Patriot Act;
• Truth-in-Lending Act;
• Bank Secrecy Act and IRS regulations requiring reporting of certain cash transactions;
• Trading with the Enemy Act and related Executive Orders and regulations; and
• Privacy provisions of the Gramm-Leach-Bliley Financial Services Modernization Act.

At Top Dollar, we work hard to be a supportive and engaged member of the community.  As such, we sponsor community outreach efforts, and support charities and other nonprofit organizations.  Our giving is focused on efforts that deliver positive outcomes in the areas of education, healthcare/wellness, social services, and civic duty.  The following are a few of the ways we support the community in which we serve.

Top Dollars’ Children’s Book Corner

Children who read are more likely to develop a greater interest in school and tend to perform better academically.  Hence, to promote reading among children who live near our store, Top Dollar created the Children’s Book Corner.  The Children’s Book Corner is an in-store bookshelf stocked with more than 250 free books appropriate for children up to 10 years of age. This very popular section of our store is open to all neighborhood kids who want to check out a book and read at their leisure.

Children’s Cancer Recovery Foundation

Each year, Top Dollar donates to the Children’s Cancer Recovery Foundation—a national organization that supports children living with cancer and their families. The organization’s mission is to help cancer patients survive through integrated cancer care, a process pioneered by Greg Anderson—a cancer survivor and founder of Cancer Recovery Foundation International.

The Katie Able Foundation

Top Dollar Pawnbrokers is a strong supporter of the Katie Able Foundation, a community-based organization dedicated to helping individuals achieve financial freedom.  The organization offers valuable social, educational, and economic empowerment programs including: adult education, youth development, services for victims of domestic violence, financial literacy, business and workforce development training, and family support services.

Prince George’s County Professional Fire Fighters and Paramedics Association

Each year, the lives of many Prince George’s County residents are saved due to brave rescue efforts of local firefighters and paramedics.  Top Dollar thanks these men and women for their heroic work, and as such makes an annual contribution to the Prince George’s County Professional Fire Fighters and Paramedics Association.  Our contributions support fire fighters’ giving to local charities including, the Muscular Dystrophy Association, Washington Hospital Center Burn Unit, Race for the Cure, and the National Fallen Fire Fighters Foundation.

Words of Gratitude from Schools We Support

Dear Top Dollar Pawnbrokers,

I can’t believe it. This morning when I woke up to read “Your project has been fully funded!” in my email inbox I nearly cried. This overwhelming emotion is entirely because of you, your generous donations, and your continued inspiration to my students and me…. My students will be pleased and excited when I tell them that our project has been funded. I can’t wait until Monday!

Ms. M.

Potomac High School

Oxon Hill, Maryland

Dear Top Dollar Pawnbrokers,

Thank you so much for your generous donation, which will aid my music students…. Our music program [Making the Notes Come Alive!] is already striving to do so much to enrich the lives of these high-need students, and being able to offer them the most dynamic, exciting lessons that we can will not only improve their musicality but also their literacy, mathematical skills, and self-esteem. Thank you once more for your generosity!

Mrs. S.

Flintstone Elementary School
Oxon Hill, Maryland

We were blessed enough to have the opportunity to help a growing family of 9 this holiday season. Everyone in the family woke up Christmas morning to a new pair of shoes and toys galore. All of us at Top Dollar Pawnbrokers look forward to doing more each Christmas for deserving families in our neighborhood. If you know a family that you feel deserves a Christmas like never before please don’t hesitate to drop us their information and a hint as to what you think may bring smiles to their faces.

Gifts Galore