Loans - Frequently Asked Questions

1. What’s the difference between buying jewelery from Lew Silver and buying from a retail jeweler?
   Mainly price. We offer you merchandise at 40%to 70% below retail prices.
2. How does a pawnbroker work?
   At Lew Silver we specialize in loans on diamonds and gold. Loans are 3 months and interest is 3% per month. Also there is a $1.00 per month storage and a flat 2% insurance fee. The size of the loan is dependent on the collateral presented.
3. Why do people borrow from pawnshops?
   Pawnshops offer the consumer a quick, convenient and confidential way to borrow money. A need for short-term cash can be met with no credit check. A customer receives a percentage of the retail value of the collateral item.
4. What is the foreclosure procedure?
   In Michigan the loan period set by the state is 3 months. At Lew Silver Diamond Broker we offer an extension period of 28 days after the three months.
5. How often do customers default on their loans?
   On average 80 percent of loans are repaid nationally. At Lew Silver our repayment rate is 95%. We want our customers to have their collateral back, which is why we offer the additional 28 day extension period.
6. Do people bring in stolen items to pawn?
   Records of all loans are made. The customer must show current Drivers License or State ID. We record all the information on ID required by state law and thumbprint the customer. All information is then presented to the police department It is not in the interest for the pawnbroker to accept potentially stolen merchandise because police can seize the merchandise and the pawnshop owner loses the collateral and the loaned money.
7. Are pawn interest rates higher than banks?
   Yes. To provide the service, all lenders must charge rates commensurate with risk, size and duration of the loan, collateral offered and recourse. Pawnshops are small dollar, high risk, and short duration loans. When a pawnshop customer doesn’t repay the loan the pawnbroker has to turn that “bad debt” into a retail item to recover the cost. Other lending institutions do not incur retail costs including additional floor space, counters, sales personnel and advertising.