Pawnshop Loans Quiz

4. If the pawned item is broken or lost while in the possession of the pawnbroker, it is the consumer’s responsibility to replace the cost of the item.

a. INCORRECT

False. Pawnbrokers must protect pawned property from damage or loss. They are responsible for replacing any item that cannot be returned to a borrower in its original condition when the loan it secures is paid off.

Reference: Missouri General Assembly Web site (n.d.). Chapter 367. http://www.moga.mo.gov/statutes/chapters/chap367.htm.