"And under a new ordinance, fewer kinds of merchandise will be tracked as it is pawned and resold."
Burnsville Police Chief and other law endorsement entities believe the Busnsville policy will restrict investigations and suggest that stolen property will be hard to recover. Additionally, taxpayers will now have to cover the cost of fees.
This is the perfect example of John Kline's motto: Let the business world regulate itself. And how ironic and coincidental (if you believe in it) that Rep. John Kline (R-MN-02) has a close relationship with Pawn America and CEO Brad Rixmann. As I've noted before, Pawn America has been one of the biggest donor to Kline's campaign fund.
Besides the above changes, Rixmann (Pawn America) wants is to switch from the current database (APS) maintained by Minneapolis and used by the Minnesota and Wisconsin police to a private one (LeadsOnLine) of a firm in Texas (ah, another coincident! BTW the CEO David Finely also donates to GOP campaigns).
By law in every U.S. jurisdiction, all pawnshop transactions must be recorded and made available to local police. Known as tickets, the records contain the name and driver’s license or state identification information of the person who pawned an item, and a detailed description of the item pawned. Police officers collect the tickets and scan them to compare with reports of stolen property.
This represents big business, but it also represents how unregulated businesses can cost the community. Pawn shops exact a heavy fee because they impose a heavy burden in the communities they operate:
- Incredible high fees:Loans are steep, usually asking 10-20% service fees monthly making them pricier than bank loans or credit cards, and if the fee isn't meet, they can sell the item. A 10-20% fee translates into an annual percentage rate exceeding 300%.
- Increases in crime: With a pawn shop "comes an increase burglaries and break-ins. A pawnshop might give the addicts who regularly buy their drugs on that corner ready access to cash for their habit. A pawnshop might make it hard to woo more respectable businesses to that part of the south side; lower property values; increase gunfire; drive families away"
- With the elimination of pawn shops transaction fees, taxpayers will have to cover the fees!
- More stolen goods go unrecovered: Police report that more stolen goods will be unrecoved due to less reporting.