EZ Cash provides small collateral loans that most financial institutions find too expensive to make. A collateral loan, also known as a pawn or pawn loan, is one where the licensed pawnbroker takes possession of the personal property for the duration of the loan. The pawn loan differs from an unsecured loan such as a credit card or signature loan. Credit cards and signature loans are provided to the borrower based on statistical ability to repay any credit advanced. With a pawn loan, however, the borrower is not required to repay the money borrowed, although most do. The amount borrowed is totally secured by the property left as collateral with the pawnbroker. The borrower and the pawnbroker both know upfront what value can be gained or lost if the loan goes unpaid. The loan amount is negotiated between the borrower and the pawnbroker and when agreed upon, a contract will be made between the two parties.

Limitations on interest rates and service charges on collateral loans are determined by state regulation, and the Federal Truth-In-Lending law. These limitations are explained to the borrower. When both parties are in agreement, the contract will be executed. When the borrower returns and repays the loan with any additional fees due, within predetermined time limits, the property is returned to the owner.

If you have additional questions, please click here to visit our Frequently Asked Questions page, or feel free to E-mail us. We are always looking for ways to better serve you.