On the contrary, if they attract customers, they enhance the opportunities for other merchants and the community. Pawnshops are registered firearms dealers with permanent places of business. No other dealer does this. As registered licensed dealers, pawnshops comply with the 5 day waiting period and back ground checks required by the Brady Bill. Federal firearms regulations require an individual to be 21 years of age to purchase a handgun and 18 years of age to purchase a long gun.
Pawnshops provide a unique public service by taking guns as collateral for pawn loans.
They are the only business that actually takes guns out of circulation and keeps them locked up in secured vaults. There are an estimated 1.5 million secured firearms in pawn shop vaults across America. To provide the service, all lenders must charge rates commensurate with risk, size and duration of the loan, collateral offered, and recourse. Pawnshop loans are small dollar, high risk, short duration loans. The item stands as the sole collateral offering no other recourse.