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Why are pawnbrokers called pawnbrokers?
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I don't know anyone who has had to broker their pawns even in these Credit Crunch times.
asked in language, english, pawnbrokers



tracieboo answers:

A pawnbroker (or pawnshop) is an individual or business that offers monetary loans in exchange for an item of value that is given to the pawn broker. The word pawn is derived from the Latin pignus, for pledge, and the items having been pawned to the broker are themselves called pledges or pawns, or simply the collateral.

If an item is pawned for a loan, within a certain contractual period of time the pawner may purchase it back for the amount of the loan plus some agreed-upon amount for interest. The amount of time, and rate of interest, is governed by law or by the pawnbroker's policies. If the loan is not paid (or extended, if applicable) within the time period, the pawned item will be offered for sale by Pawnbroker/Secondhand Dealer. Unlike other lenders, though, the pawnbroker does not report the defaulted loan on the customer's credit report, since the pawnbroker has physical possession of the item and may recoup the loan value through outright sale of the item. The Pawnbroker/Secondhand Dealer also sells items that have been sold outright by customers to the Pawnbroker or secondhand dealer.

http://en.wikipedia.org/wiki/Pawnbroker


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laratheangel answers:

The word meaning someone who lends against the secuirty of an item of persoanl, moveable property for interest is a compound of the words "broker" and "pawn".

Broker just means something like agent or arranger.

Pawn is a word deriving from old French and of Gremanic origin meaning borrowing and leaving an object as secuirty. It shouldn't be confused with "porn", the thing that corrupted me on the Internet hahahahaha. Lara xx


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