National Pawnbroker Spring 2011 by National Pawnbrokers Association

Official publication of the National Pawnbrokers Association

MAY 2011

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Up in Flames

H.R. 4 repeals the Expanded 1099 Reporting Mandate 1099 Reporting Requirement Repealed

Important Information for Pawnbrokers Who Also Buy Gold & Other Precious Metals, Gems & Jewelry From the Public Complimentary with Paid Membership to NPA

NPA to Refocus Public Relations and New Media Strategy

L E T TER FR O M THE PRESI DE N T

by David Crume

It’s hard to believe that two years can go by so quickly! Yes, it was almost two years ago that I had the honor of being elected as the President of this great Association. I feel blessed to have worked with such an outstanding group of Directors. What an amazing group of hardworking dedicated people! Our Association is so lucky to have such talented people looking after their industry on the Federal level. Many of your Directors not only dedicate their time here, but most of them are also committed at the State level serving as Presidents and Directors of their own Associations and at the same time running their own shops. These fine men and women understand the uniqueness of our industry and the customers we serve. The Committees were remarkable in their achievements. Our Expo has grown Exponentially! Our voices are being heard, our fight is right, our Future Business Leaders are being supported, and the NPA is a force to be reckoned with on the doorsteps of Washington. And the talent extends beyond our Directors. Our Regulatory Counsel-so highly sought after by other groups- works diligently making sure our industry doesn’t suffer from the unintended consequences of broadly written legislation. And without our lobbyist working through his

connections,confidentlydelivering the message to the members in Congress that need to hear it, we would be stuck in first gear. In addition, our Public Relations firm haspositionedourindustryinanew and positive light, never missing an opportunity to tell our story. Your Executive Director has built a team of positive and responsive staff that thoroughly understand all aspects of building relationships with all members.

I am so thankful to have worked side-by-side with each and everyone.

Foremost, I want to thank you, the membership, for your support. We made some big changes over the last few years in our structure and our dues, yet you continued your unwavering support. This did not go unnoticed by myself or your Directors. We understand how hard you work and know you have choices. We are always only as strong as our membership.

Our Association is successfulbecause we call on our members who work directly with our customers every day to join us at the national level. We don’t use CEO’s and Lawyers unrelated to our industry to craft our message. Our heart and soul is derived from you and members like you who desire to grow beyond their business and build for the future of the pawn industry. Our standing Directors are here to serve for a short time, develop new Directors, and then return to their businesses. We are always in need of people with fresh ideas, unique perspectives, and most of all a desire to see the bigger picture. In short, we need you. I am asking you to consider taking the next step. Join us at our meetings, at our Legislative conference, or at the convention and get to know the industry leaders and what they do. See if serving on the Board of Directors of the National Pawnbrokers Association makes sense for you. We have welcomed several new Directors over the past two years and are prepared to welcome you. Maybe someday you’ll be the one authoring this very same message.

The success of this Association comes from our membership. M AY 2 0 1 1

TABLE OF CONTENTS

MAY 2011

p.06

COVER STORY 1099 Repealed

Section 9006 of the Affordable Health Care Act, which imposed the new 1099 reporting requirement for goods purchased by so many American businesses, has been repealed. On April 5th H.R. 4 came before the Senate and passed by a vote of 87 – 12.

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F E AT U R E A R T I C L E

Federal Firearms Licensee Quick Reference and Best Practices Guide

p.36

Every day, ATF’s Industry Operations Investigators (IOIs) assist FFLs and help them understand and follow the rules for conducting a firearms business. Whether it is with the proper procedures for recordkeeping or the laws for transferring a firearm, IOIs ensure that FFLs comply with the laws and regulations. In conjunction with that initiative ATF has developed a Quick reference and Best Business Practices Guide.

COVER STORY

NPA to Refocus Public Relations and New Media Strategy

p.20

Over the last two years, the National Pawnbrokers Association has successfully laid the foundation to help build a new image for the pawn industry. With the groundwork in place, NPA is ready to move forward with an innovative new focus for the public relations effort.

F E AT U R E A R T I C L E

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NSSF is re-emphasizing the importance of properly keeping your firearms inventory

p.26

The National Shooting Sports Foundation (NSSF) in conjunction with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducts quarterly meetings where several topics are discussed. One frequently aired subject is inspection findings in the retail stores. Not to be confused with Letterman’s top 10, the ATF would list the top 10 cited violations in the stores from compliance inspections—and it is no joking matter.

DEPARTMENTS Letter from the President........ 01 Executive Director Report....... 04 GRC Update.............................. 06 Compliance.............................. 10 State News................................ 44 Calendar of Events................... 63

CONVENTION HIGHLIGHTS

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Pawn Expo 2011 is getting close.

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Index Of Advertisers................ 64

Check out the details on all of the exciting Educational Programs, Trade Show times, and more. A registration form is included so you can start planning now.

www.nationalpawnbrokers.org NATIONAL PAWNBROKER • PO Box 508 • Keller, Texas 76244 OFFICE: 817.337.8830 • FAX: 817.337.8875 • EMAIL: info@nationalpawnbrokers.org

National Pawnbroker is the official publication of the National Pawnbrokers Association and is published quarterly. No part of this publication may be reproduced without the written consent of Dana Meinecke, Executive Director, National Pawnbrokers Association. Sale or distribution of any or all of the contents of this magazine is prohibited. All rights reserved.

To obtain additional copies of National Pawnbroker, call 817-337-8830 or send email to the National Pawnbrokers Association at info@nationalpawnbrokers.org. For membership information, see the NPA application form in this issue or download an application from the NPA website. Editor’s Note: This publication is designed

Magazine Layout & Design: TMG, Dallas, TX

to provide accurate and authoritative information on the subject matter covered. It is provided and disseminated with the understanding that the publisher is not engaged in rendering legal or other professional services. If legal advice is required, the services of a competent professional should be sought.

E X E C UTIVE DIR E C TOR R E P OR T

Thank you for your leadership

by Dana Meinecke

would like to take this opportunity to inform you of some Member Verification Seal – The upcoming changes within our NPA Board of Directors. Many Verified Member Program offers a NPA of you have had the pleasure of working with Fran Bishop over seal for members to display on their the years at the State level. She has been an incredible leader at websites. When a user clicks the seal, the national level dedicating much of her past ten years in key a dynamically generated window appears with the member’s leadershippositionswithintheNPA.FranstartedoutasSecretary, company info, activity status, accreditation, and more. This servingasPresident,PastPresidentandthentakingontheroleof program is free for all NPA members and is an added value to Government Relations Chair during a time that we faced major NPA membership. threats such as a 36% rate cap and the largest financial reform legislationthattheUnitedStateshaseverseen.Franwastheleader NPA PawnFyNdR – located on the NPA home page of the that guided our path through all of this. Fran has informed the website.Thisisauniquesearchenginefortheextensivedatabase NPA Board of Directors that she will be stepping off the board of the NPA members. Helps consumers find pawn stores they this June and will be able to spend time with her husband Tony, cantrust. Userscansearchthedatabasebycity/stateorsimplyby andher4grandchildren.WeoweFranagreatdealofgratitudefor entering their zip code. PawnFyNdR is available online at www. herdedicationtothepawnindustryand herunwavering support PawnFyNdR.com as well as in the NPA iPhone app. of our state and national associations. Although we hate to see her go, she will not be far away. I still have all of her New Media Strategy – in the past two years phone numbers AND I do know where she lives! With the launch we have successfully laid the foundation to help of our new website build a new image for the pawn industry. New Dave Adelman has also decided to leave the this past November advocacy and social media platforms such as Board of Directors. Dave has been a member of our presence PawnsShopsToday, the NPA iPhone app, NPA NPA since 1989! He has served as an Officer on Facebook page and PawnTweet.com to extend on-line has definitely the Board of Directors since 1993 and has served our core message. The NPA also extended its increased as Secretary/Treasurer, Vice President, President community outreach through PR events such –we now have and Past President! Dave has learned the fine art as Musical Instrument Gift Day and the FBL a #5 page ranking ofgrassrootseducationandsupportandduringthe Scholarship Fund. With that groundwork in on Google Financial Reform Legislation, was able to call upon place, NPA is ready to move forward with an which is very thoseUSRepresentativeswhomhehaddeveloped innovative new focus fort the PR effort. This impressive. a close relationship and asked them for help! They year, we will be taking a more in-depth look at wereinstrumentalinhelpinguswiththeConsumer consumerswhousepawnstores’services,asking FinancialProtectionBureau’sfinalexemptionofthepawnindustry. “Who is the Customer?” With this strategy, we will focus in DavehasalsobecomeahugesupporterofourMusicalInstrument on real pawn customers, tell their stories, and put a face on the Gift Day and has supplied and delivered hundreds of musical pawn industry customer base as a whole. instruments on behalf of the NPA. Dave has also assured us that he will be close by to continue supporting the NPA. Although The NPA will also be working on updating the industry’s DaveandSheilahaveenjoyedtravelingthecountryforNPAboard demographic profile, which will help the association better meetings,conventionsandLegislativeConferences,theywillnow understand the people it serves, as well as painting a more have the opportunity to travel and enjoy life without having to accurate picture of current pawn customers. schedule their entire lives around NPA meetings. As Executive Director, I have personally had the pleasure of workingwithFranandDaveandtheyaretwoofthemostgracious, caringpeoplethatIhaveeverknown!Theyhavebeeninstrumental in my learning process of this industry and I thank them for their support over the past years! Public Relations Wehaveinitiatedseveralnewelementsinourpublicrelationsefforts.

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If you haven’t been to the NPA website recently, I encourage you to take a few minutes and review it. IfyouhaveanyquestionsconcerningourPublicRelationsefforts, pleasefeelfreetocontactme.Ifyouconductcommunityoutreach programsinyourarea,pleasesendmetheinformation.Wewant to publish those efforts to share with our members.

GOVE R N ME N T R E LATION S

NPA Legislative Update Fran Bishop, GRC Chair

There are several things we need to cover and no better place to start than by thanking the large group of pawnbrokers who took time from their busy schedules to attend the 2011 NPA Legislative Conference on March 10th in Washington, D.C. They came by plane, train and automobile and included many first-time attendees. Our day started with a breakfast at our headquarters hotel with Senate Majority Leader, Harry Reid and several members of his staff. Senator Reid filled us in on the latest news of the Senate and opened the floor for a lengthy question and answer session. Our Lobbyist, Cliff Andrews, gave everyone their ‘marching orders’for the day and discussed the areas of concern to the pawn industry to be covered, including the importance to NPA members that Congress repeal NOW the new 1099 reporting for goods purchased requirement, and the importance of protecting our customers’rights to financial privacy. The eager group armed with NPA Briefing Books, Best Practices and talking points headed off for their mission to complete over 90 Hill meetings arranged by Cliff. The day concluded with a reception for Rep. Spencer Bacchus (R-AL), Chair of the House Financial Services Committee, where we enjoyed socializing and hearing his very timely and candid comments on the economy and financial regulatory reform. The remainder of the evening was spent enjoying a relaxing dinner sponsored once again by NTR Metals and with everyone sharing their memorable experiences during a very successful NPA day on the Hill. Secondly, I am extremely pleased to be able to tell you that Section 9006 of the Affordable Health Care Act, which imposed the new 1099 reporting requirement for goods purchased by so many American businesses, has been repealed. On April 5th H.R. 4 came before the Senate and passed by a vote of 87 – 12 thus repealing the enhanced 1099 reporting for goods transactions. The President signed this legislation into law on April 14, 2011.

We can now concentrate on growing our businesses and not wasting time and money on burdensome compliance preparations. This victory for small business, and in particular the pawn industry, could not have been made possible without the huge outpouring of grass roots efforts by our NPA Members. I also want to give a special vote of thanks to the pawnbrokers that really pushed hard during our March Legislative Conference meetings with members and staff on the Hill to get this repeal over and done with NOW. So whether you called, faxed, emailed or had face to face meetings….our voices were heard. Third, a lot of attention is being paid on the Hill and in the media about the Consumer Financial Protection Bureau. Bills have been introduced in the House to move the new Bureau into the Treasury Department where its budget would be subject to the appropriations process and its activities to more oversight by Congress. Another bill calls for the Bureau to be administered by a five member board instead of just one director. Team NPA is watching the progress of these bills and following the many hearings being held by the House Financial Services Committee about the Bureau’s powers. When we know about any definite movement on those bills, we will send a general member alert. Fourth, we continue to work on obtaining privacy protections for pawn customers. Stories still filter up to NPA headquarters about customers who have been wrongly profiled, and ultimately if the pawn industry does not secure some stronger protections, there could be adverse consequences down the road for our businesses. There is no silver bullet solution as a combination of ‘fixes’ are needed at the federal and state levels, but we will continue to work it and try to secure some relief in any legislative vehicle that presents a viable opportunity. Fifth, I want to mention the fact that the Bureau of Alcohol, Tobacco, Firearms & Explosives sent representatives to the NPA board meeting on March 11th who informed us that Form4473isonceagainbeingrevised,andinvitedourinput toward improving this document. We also understand Legislative Update...Continued on page 08

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GO VE R N ME N T R E LATION S LegislativeUpdate...Continuedfrompage06

from some NPA members who are Federal Firearms Licensees, that during recent BATF&E audits they are being asked for substantiating information of consent/ permission to deal in firearms from their premises. As always, if you have a FFL, we urge you to review your compliance programs to ensure all I’s are dotted and T’s crossed. And, finally, a recent decision from the United States Court of Appeals for the Eighth Circuit is a heads-up to all of us on working with local law enforcement and/or state legislatures to clarify proper procedures for confiscations of property in pawn that is alleged to belong to a third party. The decision in a lawsuit brought by an Arkansas pawnbroker against a county, basically holds that if an item is in the officer’s plain view – even if the officer threatened his way into the secured spot from which he can view it, as happened in this case – he can confiscate it without a warrant. And the pawnbroker has no remedy for abuse of due process. This makes getting procedures ironed out in statutes, regulations, or even ordinances the smart thing to do if your state does not have a statutory

Pr eciou s M eta l s & R efin er y protection in place. Therefore, our advice is to dust off those grass-roots efforts and get yourself some protection.

Refining & Peace of Mind

This is my last column as a NPA Director and Chair of the Government Relations Committee. I would like to thank President Crume, the Board, and the NPA Members for allowing me to serve in this capacity for the past two years. Working with our Lobbyist, Cliff Andrews, Regulatory Counsel, Professor Sarah Jane Hughes, CoChair, Morgan Jones and the rest of Team NPA has been a truly rewarding experience. Many times it has seemed like being on ‘Mr. Toad’s Wild Ride’ or Nell tied to the railroad tracks by Snidely Whiplash….(if you don’t know who that is then I’ve just told you how really old I am)… but in all seriousness, I wouldn’t trade the adventure for anything. I’ve met lots of wonderful people along the way and made lifelong friends.

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I close with this quote from William Jennings Bryan… ..”Our government conceived in freedom and purchased with blood can be preserved only by constant vigilance”. My friends, don’t forget to always be vigil.

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CO M P L I A N C E

Important Information for Pawnbrokers Who Also Buy Gold and Other Precious Metals, Gems and Jewelry Directly from the Public

he NPA puts out alerts from time to time on pawnbrokers’obligations to comply with federal laws and regulations, including regulations promulgated by the Financial Crimes Enforcement Network (FinCen) and the Internal Revenue Service. In 2005, FinCEN adopted as an interim final rule, a rule implementing a portion of the USA Patriot Act that affects dealers in precious metals, gems and jewelry. That rule was originally codified in 31 CFR Part 103, the general anti-money laundering regulation for many industries. In October, 2010, FinCEN announced that it was reorganizing that rule effective on March 1, 2011 into a new chapter X of 31 CFR Part 103. Little of substance changed so that the guidance sent following the publication of the 2005 rule remains appropriate. As the NPA explained at the time that the 2005 version of the Rule was promulgated, the rule provides a limited exemption for pawnbrokers. This exemption allows items taken in pawn otherwise covered by the rule as well as their subsequent foreclosure and sale to be handled without the necessity of complying with the Rule. However, items purchased directly from the public or sales other than of items of collateral subsequently foreclosed on and sold remain subject to this Rule’s requirements. So, precisely when does the Rule apply to your non-pawn transactions and what does it require your business to do to comply? WhatdoestheRulerequire?TheRulerequirestheestablishment of an anti-money laundering compliance program that contains all four of the following requirements: 1. policies, procedures and internal controls, based on the business’s own assessment of the money-laundering and terrorism-financing risks associated with their business; 2. designation of a compliance officer who is responsible for ensuring that the program is implemented effectively;

3. ongoing training of appropriate persons concerning their responsibilities under the program; and 4. independent testing to monitor and maintain an adequate program, with modifications to the program and retraining of personnel, as may become appropriate with through regular risk re-assessments and the passage of time, changes in business lines, or other ongoing legal and regulatory changes. How does the Rule’s limited Pawnbroker Exception work? 1. The Rule does not to transactions by persons who hold licenses to provide pawnbroking services to the public to the extent – and only to the extent – that the transaction bringing the precious metals, gems or jewelry into the pawn store is a pawn transaction. That means that outright purchases or sales other than from pawn collateral do not qualify for this exemption. 2. In addition, the Rule’s compliance responsibilities arise if in the preceding year the dealer purchased and sold at least $50,000 of“covered goods”So, if your business had transactions of purchases from and sales to the general public or from foreign sources apart from pawn transactions and the combination of those transactions was more than $50,000 last year, for example, you should be complying with the Rule this year. 3. What are “covered goods”? The Rules defines “covered goods” as jewels, precious metals, precious stones, and finished goods (including but not limited to jewelry, numismatic items, and antiques) that derive 50 per cent or more of their value from jewels, precious metals or precious stones contained in or attached to the finished goods. 4. If you also operate a check cashing business that buys metals, gems and stones from the general public or from foreign sources, then that business – not covered by your pawn license in most jurisdictions – is not eligible for the pawn exception described here. Important Information...Continued on next page

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Important Information...Continued from previous page

It must have a full compliance program for the FinCEN Rule’s purposes on its own. How does the Precious Metals, Gems, Stones, and Jewelry Rule work with the Requirements to File Information Reports to the Internal Revenue Service for Cash Transactions of $10,000 or more on Form 8300? 1. The Precious Metals, Gems, Stones, and Jewelry Rule is focused on getting individual businesses to make assessments of risk, have compliance plans and compliance officers, do training and do monitoring and arrange for yearly annual audits of their compliance programs so that their businesses will not become conduits for money launderers or persons engaged in terrorist financing. It is not focused on information reports on particular transactions: its focus is on prevention and watchfulness. Only businesses that have retail business in the United States have to comply. 2. The Form 8300 Information Reporting Rule is focused on tracking individuals’transactions with your businesses that involve, if appropriate, the receipt by your business of cash and monetary instruments in amounts of $10,000 or more in a 12-month period. You track transactions and make annual or more frequent reports on Form 8300, as well as give notice to your customers whose transactions trigger the reporting in January of the year following the point at which any customer’s transactions exceed the aggregated $10,000 or more threshold for those customers. Conclusion: With the recent reorganization of the Bank Secrecy Act regulations into new Chapter X of 31 CFR Part 103, we expect that FinCEN and the IRS will be out doing audits of compliance. Because the reorganization went into effect on March 1, 2011, NOW is the time to bring your compliance programs up to date, including any revisions to your own program needed to comply for the non-pawn parts of your business under the Precious Metals, Gems, Stones and Jewelry Rule. For more information, ask your lawyer about the Rule (70 Fed. Reg. 33702 (June 9, 2005), codified at 31 CFR Part 103, Title X, or contact the company that provides your Treasury Department/ FinCEN/ Internal Revenue Service compliance programs. .

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F E ATU R E A R TICLE

Federal Firearms Licensee Quick Reference and Best Practices Guide

very day, ATF’s Industry Operations Investigators (IOIs) assist FFLs and help them understand and follow the rulesforconductingafirearmsbusiness.Whetheritiswiththe properproceduresforrecordkeepingorthelawsfortransferring a firearm, IOIs ensure that FFLs comply with the laws and regulations. In conjunction with that initiative ATF has developedaQuickreferenceandBestBusinessPracticesGuide. (ATF Publication 5300. 15) It is designed to provide Federal firearmslicenseeswithtimelyinformationandsuggestionson waystoenhancetheircomplianceandtogivelicenseeshelpful downtoearthinformationonthedo’s&don’tsonconducting their firearms business. Excerpts of Best Practices guide will be printed in 3 installments this being the 1st. The entire document is available as a download from the ATF website by clicking on the link below. ATF P 5300.15 — Federal Firearms Licensee Quick Reference and Best Practices Guide

Expiration and Renewal of a Federal Firearms License

Federal firearms license is in effect until the expiration date on the license, unless terminated sooner. It covers business operations only at the location on the license or at a qualifying gun show or event in the State where you are licensed. ATF will send a renewal application to you about 60 days before the expiration date on your license. If you have not received your renewal application 30 days before the license expiration date, please contact the FFLC toll-free at 1-866-662-2750. You should also call if you no longer wish to be licensed. To renew, you must complete and send theapplication,withtherequiredfeeattached,totheaddress specifiedontheformbeforethelicenseexpirationdate. Ifyou file your renewal before the license expiration date, you may continue to operate until you receive your new license. If the new license does not arrive by your expiration date, ATF will issue a Letter of Continuing Authority to Operate (LOA) to establish proof of your licensed status to other FFLs. You should examine your license carefully to make sure all of the information is correct. If you find an error, return the license to the Chief, Federal Firearms Licensing Center (FFLC), for correction. You must keep your license posted and readily available for inspection by any ATF officer. Use a certified copy of your license (make a copy of the unsigned original and sign it) to make firearms purchases. Mailed, faxed, or scanned copies of certified copies are acceptable. Changing Your Mailing Address or the Address of Your Premises

If you intend to change the location of your business premises: Notify the Chief, FFLC, at least 30 days before moving your business to a new address by filing ATF Form 5300.38-Application for an Amended Federal Firearms License.Your original license must be submitted for changes

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to reflect the new address. You may not operate as an FFL atanewaddress untilyou havereceivedthe amended license from ATF. If your mailing address changes: Because all ATF correspondence is mailed to the mailing address on your license, any changes require you to notify the Chief, FFLC, as soon as possible by sending a letter advising of the new mailing address to: 244 Needy Road Martinsburg, WV 25405. If You Intend to Change Your Business Structure

Because a license is not transferable, a successor buying, leasing, or otherwise acquiring the firearms operations of an FFL must obtain a new license. For example, if a sole proprietor forms a Limited Liability Corporation (LLC), the LLC must obtain a new license. The LLC cannot operate using the sole proprietor’s license. If there is a change of control of a FFL by stock purchase or otherwise, the licensee must notify ATF in writing within 30 days of the change. Upon renewal, the corporation must file a new Application for Firearms License (ATF F 5310.12, ATF Form 7) and provide information on all new responsible persons. FFLs may report new responsible persons by filing a letter with the Chief, FFLC. The letter must provide all of the identifying information for the new responsible person(s) as required on ATF Form 7. The letter must be accompanied by a current pictureoftheresponsiblepersonandfingerprintssubmitted on an FBI Fingerprint Card (FD-258). Reporting of a Theft or Loss of a Firearm:

Procedures when firearms are missing and procedures for firearms that are taken in a crime: Missing from Inventory (e.g. Disposition unrecorded/ unknown)

• Prepare ATF Theft/Loss Report An ATF Form 3310.11 Federal Firearms Licensee Firearms Inventory Theft and Missing Inventory (Loss) Report must be prepared when it is discovered that firearms are missing from inventory. Submit the original to the Stolen Firearms Program Manager and keep a copy for your records. The Stolen Firearms Program Manager must be notified within 48 hours of the discovery. This can be done by calling toll-free (888) 930-9275. The Stolen Firearms Program Manager will issue an incident number that is to be placed in the disposition section. • Notify the Local Police MakingthisnotificationisarequirementforallFFL’s. However, it should be made clear to the authorities that there is no Firearms Guide...Continued on page 14

F E ATU R E A R TICLE Firearms Guide...Continued from page 12

evidence of a crime and that the disposition of these firearms is unknown or unrecorded. No local police report number is requiredtobeplacedinthedispositionrecordsbecausemany departments will not issue a police report if no crime has occurred. However, if the department does issue an incident or report number, this should be placed in the disposition section along with the ATF issued incident number for each firearm that is missing. • Notify ATF of any Firearms Recoveries It is not uncommon to find a firearm that initially could not be accounted for or located. It is extremely important that thesediscoveriesbereportedtotheStolenFirearmsProgram Manager so that the list of firearms reported missing from inventory can be corrected. Taken in a Crime (e.g., Burglary, Larceny or Robbery) • Contact Police An immediate notification may be the key in identifying and capturing thieves and in preserving evidence. • Contact Local ATF Office The local ATF office will work with the local law enforcement authorities investigating the theft. They can also assist in the preparation of the Theft/Loss Report for submission to the ATF Stolen Firearms Manager.

Crime Information Center (NCIC) system so that law enforcement all over the country will know if a firearm they recover from someone is stolen. An expansive source of information on Federal firearms laws and regulations is the Federal Firearms Regulations Reference Guide, ATF Publication No. 5300.4, which can be obtained from your local ATF office or by calling the ATF Distribution Center at 301-583-4696. This publication and many ATF forms are also available on ATF’s web site www.atf.gov. A list of ATF offices can be found at www.atf.gov/field. Straw Purchaser:

A“straw purchaser”is a person who is not the“actual buyer” of the firearm; that is, a person who obtains a firearm for another person. Straw purchases are a primary source of firearms used in crime. If you suspect that a transaction is a straw purchase or there are suspicious circum- stances surrounding the potential sale—such as one person picking out the firearm, handling the firearm, and providing the payment for the firearm while another person completes the Form 4473—you should not sell the firearm. Similarly, if one person attempts to purchase a firearm, NICS denies or delays the attempted purchase and another person with him or her attempts to buy the same firearm, you must not complete this sale.

• Ensure Safety and Preserve If there is any possibility that criminals may be present, do not enteracrimesceneuntillawenforcementauthoritiesindicate that it is safe. Do not disturb the crime scene until law enforcementauthoritieshavecompletedevidencegathering. Unless you are asked to assist, avoid the temptation to assess damage/losses until they are finished. • Prepare ATF Theft/Loss Report An ATF Form 3310.11 Federal Firearms Licensee Firearms Inventory Theft and Missing Inventory (Loss) Report must be prepared when it is discovered that firearms are missing from inventory. Submit the original to the Stolen Firearms Program Manager and keep a copy for your records. The Stolen Firearms Program Manager must be notified within 48 hours of the theft, and should be notified as soon as possible. This can be done by calling toll-free (888) 930-9275. The Program Manager will issue an incident report number that is to be placed in the disposition section (along with the police report number) of the Acquisition/ Disposition records for every firearm that is stolen. • Notify ATF of any Firearm Recoveries It is not uncommon to find that a firearm initially thought to have been part of a group that was stolen, was in fact sold lawfully or is still in inventory. It is extremely important that these be reported to the Stolen Firearms Program Manager. Stolen firearms are placed into the National

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A DVE R TIS E ME N T

STATE OF THE

“I

INDUSTRY

am getting many phone calls and walk-ins to my store from diamond dealers wanting to buy my diamonds, especially my small melee sizes! It seems like suddenly, over the past 6 months, everyone wants to buy diamonds! What is going on here?” This is the common question pawnbrokers across the nation are having lately.

Thepurposeofthisarticleistoanswerthatquestionandgiveanunbiasedassessmentofthecurrentstateofthediamondindustry. Itwillalsogiveyouanin-depthoutlineonthebestwaytomaximizeyourgainwhenyousellyourdiamonds,giventhehighdemand. WHY THE SUDDEN DEMAND? There is a huge demand for diamonds, primarily due to two factors – supply/ demand and speculation. The demand is coming from overseas, primarily India and China, and it has reached speculativelevels. Manyfactorshaveled to this scenario: In late 2008, when the globaleconomycollapsed, luxuryitems, and especially jewelry, took a beating. Retail jewelry demand plummeted and resulted in many bankruptcies, losses and store closures. With virtually no demand, De Beers and other global mining companies halted production of roughdiamondminingacrosstheworld. In natural response, diamond cutting factories worldwide laid off thousands oftheiremployeesandcutterstosurvive. The interesting catalyst was that the economies in the emerging markets recovered at breathtaking speeds. In the last few months, demand for diamond and jewelry skyrocketed in markets such as China and India. Unfortunately, there are not enough diamonds to meet thedemand,sincetheminingcompanies such as De Beers halted diamond mining and production for too long, anticipating a long downturn. Although they are increasing production quickly, thetemporaryhighdemandisoutpacing supply. As a result, many people have turned to secondary markets to find diamonds. With prices rising rapidly, speculation comes into play. There are millions of carats of diamonds in the market but a good portion of the diamond wholesalers are holding onto them speculating that the prices will

raise further. As history has shown us againandagain,speculationdoesn’tlast forever and values can decrease quickly and without much warning. When something rises too high too quickly, one must proceed with caution. WHAT

ARE

DIAMONDS

WORTH?

First and foremost, diamond prices are indeed up. Then the second question is how much? This is an opened ended question because many factors play a part, especially the 4 C’s—Cut, Clarity, Color and Carat weight. For instance, fancyshapeddiamondssuchasbaguettes or marquise are worth less than round diamonds. Most, if not all, pawnbrokers have experienced a scenario where they are quoted a high price over the phone for their diamonds, only to be disappointed when they are later told it is worth a lot less when they mail them in or have the wholesaler come in to price them. This is because many speculative dealers try to entice a pawnbroker with a high price and then try and get the same diamonds for cheap by ‘talking them down’ with explanations such as “this quality is much lower” and so forth. The old saying that “if it’s too good to be true, it probably is…” applies here very accurately. However, there are steps you can take to maximize the value of your diamonds and not be deceived.

are steps one can take to help maximize the value without fully sorting all of the stones which takes a lot of time, effort and money. Many people have their own definition of “small sizes” which are known as melees. Melee diamonds are all diamonds 9 points and below. The next break would be diamonds from 10-15 points; the next would be 16-25 points, next would be 25-40 points, then ½ carat diamonds, ¾ carat diamonds, and 1 carat and up. Next, stones should be roughly examined to evaluate quality of diamonds in each size group. This is the only way that you, as a pawnbroker, will see exactly what you are being paid for each diamond lot. Our company provides this service and process for every diamond lot we evaluate at no cost to you. For larger stones, especially stones 1 carat and up, each stone should be graded carefully. Pawnbrokers have asked us in the past what stones are worth certifying. Usually stones with color (J+) and quality (SI1+) should be certified. Round brilliant are the best shapes to get certified. There are many diamond grading labs in the nation

MAXIMIZING VALUE FOR YOUR DIAMONDS – STEP 1: ORGANIZING YOUR DIAMONDS

We know that determining the value for diamond breakouts is tough. There

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State of Diamonds...Continued on Page 18

A DVE R TIS E ME N T StateofDiamonds...ContinuedfromPage16

whicharegreatforretailandtoselltoconsumers. However,ona wholesalelevelthemostaccuratelabisG.I.A. Thislabisrespected across the world for their accuracy. MAXIMIZING VALUE FOR YOUR DIAMONDS – STEP 2: SELLING & FINDING THE RIGHT DIAMOND BUYER A good rule to follow is that one should continuously sell diamonds, and not speculate on the volatility of the diamond market. Recently, the head of Russian diamond mining giant Alrosa told Bloomberg Television that diamond prices are climbing faster than expected and could create a price bubble, just as they did prior to the financial crisis in 2008. Booms and busts have been in part of our lives as long as history; it is always wise to avoid speculation and sell to respected organizations. The next question is with so many diamond buyers, who is the right buyer? There is no single “right buyer”, but as history suggests, it is best to work with a tried and tested wellrespected diamond organization. With so many diamond buyers, it is critical to make sure they are adequately licensed and legitimate as a diamond company. It is also especially important to work with a diamond dealer that does not deal in any “conflict” diamonds. Palak Diam, Inc. has been in business for several generations and is a well-respected and proud member of the National Pawnbrokers’ Association. Palak Diam has consistently paid some of the highest prices in the nation for diamonds because we have our own diamond factory overseas. All of our diamonds are “conflict-free” and are sent overseas to our inhouse diamond factory, where they are assorted, re-cut, and graded. From there, they are distributed to our 12 sales offices worldwide serving over 18,000 accounts. By selling to Palak Diam, you are selling to a well-respected organization in the diamond industry and at the same time insuring you are selling at maximum market prices.

MAXIMIZING VALUE FOR YOUR DIAMONDS STEP 3: HOW TO SELL YOUR DIAMONDS

There are many ways for you to sell your diamonds to us.

A. SHIP IT FREE! Yes, it is 100% free and insured. We will send a prepaid FedEx box directly to you, you put the diamonds in the box, and we will have the box picked up at your store! We will give you a quote on your diamonds within 24 hours of receiving the box, and if you accept, we will overnight the check to you!

B. BRING IT TO TRADE SHOWS We exhibit at all major tradeshows, and will be exhibiting at the 2011 NPA Pawn Expo. Also, the NPA is putting together trading sessions (June 13th and 14th) in an armed secured room for two days before the expo. Appointments needs to be set up for the trading sessions so if you plan on attending the NPA Pawn Expo please call or email us with your what time and day you prefer.

C PALAK DIAM WILL COME TO YOU! We are constantly traveling across the country so if you have diamonds for sale, please feel free to call us!

ABOUT PALAK DIAM Palak Diam is the largest buyer of breakout and melee diamonds in the United States today. We are a family-owned and operated business for three generations now, dating back to 1935. An organization with over 75 years of hard work and integrity, Palak Diam has grown from a single office into a global powerhouse today with over 12 offices worldwide, setting ourselves as one of the premier worldwide diamond organization. Headquartered in Los Angeles, California, Palak Diam has only one motto by which it operates: “Our clients come first, always…” Palak Diam, Inc. 550 So. Hill Street Suite 880 Los Angeles, CA 90013 www.PalakDiamond.com Direct: (213) 268-8485 Office: (213) 228-0077 Email: ankur81@aol.com

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COVE R S TORY

National Pawnbrokers Association to Refocus Public Relations and New Media Strategy Emmett Murphy, 3Click Media

ver the last two years, the National Pawnbrokers Association has successfully laid the foundation to help buildanewimageforthepawnindustry.Newadvocacyandsocial media platforms such as PawnShopsToday.com, NPA iPhone app,NPAFacebookpage,andPawnTweet.comwerelaunchedto extendthereachoftheNPAcoremessaging.TheNPAwebsite, NationalPawnbrokers.orgwassuccessfullyredesigned,toreflect the professional and positive association mantra “Provide, RepresentandPrepare.”Thewebsitehasbecomea“go-tosource” for journalists and lawmakers seeking information and news relating to the industry. Theassociationextendeditscommunity outreach through Public Relation eventssuchasMusicalInstrument Gift Day (in concert with the Boys and Girls Clubs of America)andFBLScholarship Fund. Most importantly, the association’scoremessagehas been distilled into a clear, powerfulmessageandisnow consistentlyreferencedwhen speaking with journalists, consumers, and politicians. Mostimportantly,thismessage and the NPA agenda has been broadcastbythousandsofmedia platforms and bloggers as well as reportedbynational, regionalandlocal news organizations. With the groundwork in place, NPA is ready to move forward with an innovative new focus for the public relations effort. This year we will be taking a more in-depth look at consumers who use pawn stores’services, asking “Who is the Customer?”With this strategy, we will focus in on real pawn customers, tell their stories, and put a face on the pawn industry customer base as a whole. With the “Who is the Customer?” campaign, the NPA Public Relations team will seek out pawn customers in key areas, conduct one on one interviews, find out what issues are affectingoutcustomersandhelpthemvoicetheirexperience concerns tojournalistsandlegislators.Thiseffortwillprovide

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aresoundingcommentaryonthepositivebenefitsofthepawn industry. Chronicling the customer perspective will feed the PublicRelationseffort,providingquotesandgrassrootslevel support from the very people that the industry serves. To further this end, NPA will work to update the industry’s demographic profile, which will help the association better understand the people it serves, as well as painting a more accurate picture of current pawn customers. AnotherfocusofthePublicRelationsstrategyhasgrownoutof theunprecedentedriseofgoldandsilverprices.Anincreasing concern to our members and to law enforcement agencies alike is the issue of “rogue” gold buyers.Theseflybynight,oftenunregulated businesses operate without proper licensureandcanputthepublicatrisk. A growing number of unregulated “cashforgold”businessesaretaking in millions of dollars every year on potentiallyillegalgoldtransactions, often circumventing state, local and federal law and evading law enforcement. These “rogue” gold buying businesses often operate withoutrequiredlicenses,necessary certifications, and neglect to follow simpleproceduresrequiredbylawsuch asrequestingsellers’photoidentification. Police believe these unregulated gold transactions are leading to rise in violent crime. A coordinated public relations, government relations, and national industry strategy will spotlight the issue, broadcast theassociationspositionandwillsuccessfullydifferentiate the business practices of licensed and regulated NPA members from this emerging issue. There’sstillsomuchtocomeintheyearahead:issueadvocacy, responding to journalists’requests, conducting interviews, monitoring existing news, article development and the ongoing vigilant effort to broadcast the positive story of the pawnindustrythroughnewmediaandtraditionaljournalistic channels. NPA’s Public Relations and New Media team is committed to staying ahead of the challenges at hand.

PAWN BR OKE R U N IVE R S IT Y

A Walk in your Customers Shoes By: Donna Geary

e all suffer from being stuck in our own `boxes’ from time to time. You know - that feeling that you’ve lost all perspective and can’t see the forest for the trees! Here’s a little eye-opener if you have a store that you’ve looked at time and again and perhaps missed the bigger picture. Tip - This checklist is best completed after a day or more away from your store. If that’s not possible, take a different route to work, stop for a coffee or tea and put yourself in `customer mode’as you pretend you are a customer in a store you have NEVER seen before.

1. Stand outside your store and do the Blink Test. Close your eyes and open them count to seven - one, two, three, four, five, six, seven! Close them again.That’s how long you have to make a lasting first impression. What do you remember seeing? 2. Look at your windows and/or entrance. Are they clean and enticing or cluttered and boring. Do you have a“welcome”sign or a“no shirt, no shoes, no service”(or equivalent) message that subliminally screams “Go Away!”? 3. Walk into your store (pretend you’ve never been it before) and turn to the right. 80% of your customers are inclined to do just that. What’s there? Hopefully, not the check-out counter or a barricade of fixtures. 4. Borrow a wheel chair, baby stroller or shopping cart. Carry a 10 lb. bag of potatoes under your arm. Try to push the chair, stroller or cart from the front to the back of your store; select a product, then proceed to thecheck-outorcashdesk.Findaplacetosetdownthe bag of potatoes.Take out your wallet and find a space on the counter to sign the credit card receipt. 5. Listen. What do you hear? Staffchattingandgigglingonthephone?Softorloud music that echoes your store image? Taps dripping?

6. Take a deep breathe through your nose. What do you smell? Nothing? Odors from the staff lunchroom?The musty stench of a locker-room? The sweet, enticing smell of fresh flowers? 7. Look at each wall and fixture of merchandise from left to right (like reading a book). Does it go on forever? Are there gapping holes on the“page”, where you are over-sold? Is it easy to read? Is the best asset of the product facing toward you? Is the same product behind it? Are larger items on the bottom and smaller ones on the top? Can you reach themerchandise,withoutstretching,polevaulting,or getting down on your hands and knees? 8. Look at your signing. Is it tattered, torn or hand-written? Can you find price tags or sizing information? Do you have to pick the product up to figure out what it is? Do the signs tell yousomethingyouwouldn’tknowfromlookingatthe product? Are they friendly signs? 9. Look up. Are your lights working and properly focused? Are the lights shining on blank walls or product? Is there enough light? Is there too much light? 10. Leave the store. What do you see on the way out? What do you rememberabouttheoverallimpressionandshopping experience?What would you tell your friends about it? Pawn Store Image June 15, 8:30 am- 9:45am

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PAWN BR OKE R U N IVE R S IT Y

PAWNBROKER SECURITY ISSUES - THE FACTS!

n the Seminar which I am addressing to The Pawnbroker ConventionthisyearIhopetoexpanduponsomeofthecommon issuesandclearupsomeofthemisunderstandingssurroundingmatters ofsecurityrelevanttoallformsandtypesofPawnbrokerBusinesses. Just how well protected is your business from the unwelcome attention of the criminal fraternity? In reality it is often the case that our perception of how secure we are inthemodernworldactuallyfallswellbelowexpectationlevelsand is only truly revealed after an incident has occurred. In order to get adviceonhowtodealwiththesecuritymattersforyourbusinessyou naturally turn to the Security Industry Experts. Unfortunately the word“Expert”hasbecomecommonplaceandinsomecasesitisused withoutthepropercredentialstosupportthelevelofexpertisewhich should accompany the term and this applies equally to the general advice available from some Alarm & Security Companies. The test of how“Expert”and appropriate the security advice really is can be measured by how well it withstands the reality of an attack after the advice has been fully implemented. TheaveragePawnbrokerquitecorrectlyconcentratesthemainthrust oftheireffortsinthedirectionofrunningthebusinessonasuccessful basis.SecuritydecisionsareimportanttothePawnbroker,however thosedecisions,especiallythosegroundeduponadviceoriginating from an external security source, are often taken without a true and fullpicture ofall ofthefactorswhichhaveabearingontheparticular needsofanindividualbusiness.Alltoooftentheadvicecomesfroman AlarmorSecurityCompanywhohaveaproducttosellwhichnaturally givesabiastothesituation.LocalLawEnforcementOfficerscanoften givesomegoodadvicebutitisimportanttohaveanationwidepoolof knowledge to apply to the situation. There has been in recent years an explosion in the number of alarm devices available for the protection of your business. I have much sympathyfortheindividualwithoutanexperiencedbackgroundin thetopicwhohastotryandunderstandthecomplexityofdescription surrounding equipment and systems available. The presentation shouldhelptocutthroughsomeoftheJargonusedenablinganeasier decision making process for the correct security installation for the business. This Seminar will cover actual crime situations perpetrated against Pawnbrokers with advice on how to be proactive with security procedures enabling you to have a better chance to avoid a crime taking place against your business. For thirty years my Company and I have been involved in evaluating thesecurityrisksspecifictothePawnbrokerIndustry.Wehavevisited thousands of locations all over the USA giving impartial advice on mattersdirectlyinvolvingthesafetyofpeopleandgoodsatriskinthe

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By: John Fisk

conduct of the day to day business ofThe Pawnbroker. In the course ofthisactivitywehavegatheredanunparalleledknowledgeofallof thetypesofcrimeswhichareperpetratedagainstyourpersonneland businesses.MyintentionatthisSeminaristogiveafullandfrankfact based evaluation of the key areas upon which you need to focus to make your business less of a target to the crooks out there. We prefer to call our philosophy “Crime Deflection” rather than “Crime Prevention”. Of course our aim is to prevent crime with our advice however in reality often the crime is going to occur no matter whatandthereforourintentionistodeflectitawayfromtheparticular businessweareevaluating.Oursituationisuniqueinasmuchaswedo notrelyuponsellingaproductorevenhavingthebusinesswevisitdo anythinginparticularbecauseouractivitiesarefundedbyInsurance Companies in order to give impartial well informed advice to their clients.This advice is free to the business which we are advising.This enables us to give full frank advice. The topics which will be covered fall into two main categories and thesearePhysicalSecurityandProceduralSecurity.Subtopicscovered arelistedbelow.Evaluationandfitnessforpurposewillbediscussedof a variety of systems and units under these headings.This will enable youtobetterunderstandsomeofthecomplexitiesinvolvedincluding the ratings of various system and products available from a number of sources. You will then be able to check and see if the particular equipmentyouhaveorareplanningtoinstallreachesthestandards which are needed. Physical Security Procedural Security Safes & Ratings [Maximum Values] Business Opening & Closing Activity Night Time Secured Areas Daytime Controls Alarm Systems & Ratings Gun Control Premises Perimeter Protections Inventory & Stock Control Systems CCTV Camera Surveillance & Recording Key & Combination Code Procedures Show Window / Showcase & Display Security Personnel Hurricane & Windstorm Protections Home Invasion / Kidnap

Theseminarwillnotonlydealwiththeabovetopicsbuttherewillalso beaninsightintosomeofthemorecolorfulcrimesituationswhichwe have come across over the years.There will be time at the end of the presentation for a question and answer session to enable you to put specificquestionsonsecuritymatters.Therewillbemanyofyouwho my company has visited over the years and I look forward to seeing you at the Convention. John Fisk Senior Security Consultant. Fisk Associates Ltd

Is Your Pawnbroking Business Well Protected From Potential Loss Scenarios June 14, 1:30pm-2:45pm

F E ATU R E A R TICLE

TAKE STOCK

NSSF is re-emphasizing the importance of properly keeping your firearms inventory By Randy Clark and Glenn Sapir, National Shooting Sports Foundation

he National Shooting Sports Foundation (NSSF), the trade association for the firearms industry, in conjunction with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducts quarterly meetings at ATF headquarters in Washington, D.C., where several topics are discussed. One frequently aired subject is inspection findings in the retail stores. Not to be confused with Letterman’s top 10, the ATF would list the top 10 cited violations in the stores from compliance inspections—and it is no joking matter. The single item that consistently bubbled up toward the top of the list

was related to inventory controls. According to inspection data released by the ATF, its most cited violation is failure to properly account for the acquisition or disposition of firearms in the records. In 2009 about one out of four of the more than 10,000 FFLs inspected were cited for this violation, and in most cases the violations involve the failure to record the disposition. NSSF has always emphasized the importance of taking periodic inventory of all of your merchandise and, in particular, your firearms. Now, it is refocusing its efforts with a new

initiative. Articles like this, seminars at the SHOT Show and a brand-new video are all key ingredients of this initiative to deliver an important message. Inventory of firearms in the retail store is critical to the store on many levels. Businesses that consistently do inventory are at an advantage in several key areas of store operations. Retail is detail in all facets of the store. Detail in the inventory process is critical to the continued success of your store. The taking of a serial- number-based inventory of firearms on hand and comparing it to the open entries in the bound book will catch unrecorded

dispositions and will alert you to conduct a more thorough search for unaccounted-for firearms. Being detailed in your paperwork can help pay dividends. If you have the luxury of having a receiving employee that checks in firearms and enters the information into the A&D books, being meticulous in your follow-up to that individual ensures that this person will be diligent and detailed in his or her work. It’s the old “inspect what you expect” or who’s “checking the checker?” approach to help you with controls in the store. When the ATF

comes into your store to do an inspection, it will typically start with doing spot checks on inventory and will consider unaccounted-for firearms as a serious violation. The Industry Operations Investigator is not there to do inventory for you. If ATF spot checks your inventory and finds some issues, ATF may take it upon itself to do an entire inventory in your store. If

a store’s controls on inventory are poor enough to warrant the ATF to take an entire inventory, the FFL can expect a long and difficult inspection process. Shrinkage is another reason to conduct store inventories. Shrinkage is a retailer’s worst nightmare, and conducting inventory in the store will quickly bring out shrinkage issues either through paper shrinkage or theft. NSSF has produced an online video on taking inventory that can prove of value to all firearms retailers (see sidebar). It takes you into a firearms Take Stock...Continued on page 28

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F E ATU R E A R TICLE Take Stock...Continued from page 26

retailer’s store when a surprise inspection by the ATF takes place, and it demonstrates how proper inventory procedures allow the inspection to be a smooth and reassuring experience for all involved. In addition to the recently produced NSSF video, other resources are available online to help you in your effort to tighten your inventory-taking procedures. A visit to the ATF website www.atf.gov will allow you to download a variety of helpful information. There, you can view a twopart video on inventory produced by ATF (Part 1--http:// www.youtube.com/user/ATFHQ?feature=mhsn#p/u/5/_ mcZRD5ftz8; Part 2-- http://www.youtube.com/watc h?v=3HLFWGlePyQ&feature=related). You can also find at that site “Firearms Inventory Procedures for FFLs,” the inventory Power Point presented at the SHOT Show, as well as “Inspection Findings,” (http://www.atf. gov/publications/firearms/SHOT%20Show%202011/ SHOT%20Show%202011%20Inspection%20Findings%20 PDF.pdf ), also presented at SHOT. Pages 12 and 13 of that document focus on missing firearms. Other resources at the ATF website include“ATF Safety and Security Information for Federal Firearms Licensees,”which addresses what to do in the case of a theft or loss from your inventory (http:// www.atf.gov/publications/download/p/atf-p-3317-2.pdf); answers to frequently asked questions; who to contact in an emergency or to get your questions answered; and more.

Recent media stories, such as the Jan. 25 article in the Washington Post, on “missing firearms” at dealers in the United States, are reminders of the importance of the store owner’s responsibly maintaining the controls of his firearms inventory. The firearms dealers may find themselves in the spotlight for one reason or another. A reason to be highlighted should never be one of missing guns. All firearms dealers should“take stock”in their inventory procedures in their stores. Challenge yourself and your employees in all facets of firearms inventory controls. It is a challenge that you must meet successfully. For firearms retailers, conducting inventories is crucial to maintaining an organized and successful store. View New Video on the Importance of Taking Firearms Inventory A new online video from the National Shooting Sports Foundation (NSSF) focuses on the importance and benefits of conducting firearms inventories.The video also explains how inventories can help stores better prepare for inspections by the Bureau of Alcohol, Firearms, Tobacco and Explosives (ATF).

The video, titled “Taking Stock in Your Store and Firearms Inventory,” can be viewed along with other educational materials for retailers at www.nssf.org/ retailers/webinars. ”During the quarterly meetings that NSSF conducts with ATF, one topic that is consistently stressed is the importance of retailers conducting firearms inventories,” said Randy Clark, NSSF managing director of business development. ”Performing inventories not only makes ATF’s job much easier when visiting stores, but it also helps make paperwork more manageable, identifies bulges in inventory or low inventory levels on popular items and greatly contributes to a well-organized store.”

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COMM U N IT Y

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CO MMUNIT Y

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AFFINITY PARTNER

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2011 PAW N E XP O

2011 PAWN EXPO PMS 282

PAWN EXPO 2011 Highlights

PMS 1255

PAWN EXPO 2011 Sponsors

Pawn Expo General Session Keynote Speaker

Bill Rancic

Several years after his introduction to America as Donald Trump’s original Apprentice, Bill Rancic continues his commitment to entrepreneurship throughout the country. Today, he is building businesses, seizing opportunities and sharing his views on how to succeed in business and in life.

Unique Diamond International

Currently, Bill is developing real estate in Chicago, producing and appearing in several television programs and speaking to businesses and organizations on motivational and business topics. Bill also regularly appears in The Board Room on NBC’s primetime show “The Apprentice.” He produces and stars in the A&E series “We Mean Business,” Style Network’s reality series “Giuliana and Bill” and is the executive producer of “Repo Man,” airing in January on Discovery Channel. He makes regular appearances on numerous daytime broadcast and cable television programs such as Today, The Tonight Show, The View and various CNBC programs to talk to viewers about business and entrepreneurship. He also regularly appears in many major national, regional and local print outlets throughout the country. A published author, he wrote Beyond The Lemonade Stand to help educate and motivate young people worldwide about the value of money and how to leverage skills, talents and abilities at an early age. All proceeds from the sale of this book have gone to charity. Beyond The Lemonade Stand is the follow up to the New York Times best-selling book, You’re Hired: How To Succeed In Business And Life From The Winner Of The Apprentice, which chronicled Bill’s successful life, experience and proven advice. A budding entrepreneur at a young age, Bill got his first taste of success by founding Cigars Around the World in a 400 square foot studio apartment in Chicago. And today, it is a multi-million dollar operation now owned by Synergy Brands, where he sits on the board of directors. Highly engaged in charitable activities, Bill was recently named national spokesperson for Gradiant Gives Back – a program awarding financial makeovers to deserving families during today’s challenging economic climate. He is also an active board member for the Mercy Home for Boys and Girls.

Receive Your Annual Training Certification!!! In conjunction with the NPA, Robert Frimet, CAMS will be offering detailed training and certification in check fraud and compliance. • Increase your bottom line by detecting bad checks before you cash them.

We will also discuss gold buying requirements. This seminar is for the Pawnbroker who offers these auxiliary services within their location or is interested in offering these services in the future. Where: NPA 2011 Pawn Expo ~ Caesars Palace When: June 13, 2011 Noon – 6PM Session Cost: $150 per person Attendees Must Pre-Register by April 29, 2011

• A complete & comprehensive training course for Money Service Businesses which include check cashers, wire transmitters and money orders.

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Who Should Attend this Course? Owners, Managers, Compliance Officers, Tellers Certification of Training will be Issued (Meets Federal Requirements for Training relative to Money Service Businesses.

www.PawnExpo.com

PAWN EXPO 2011 Silent and Live Auction

nce again, the National Pawnbrokers AssociationishostingtheAnnualSilent&Live Auction at the 2011 Pawn Expo in LasVegas.This is NPA’s premier fundraising event, so start planning nowtoparticipate.Thisyearseveralstatesareputting togethera“PawnExperiencePackage”orPEP.Ifyou haveauniqueorunusualitemthatyouaredonating to the auction, please bring it to the Auction“DropOff”desk, located at the NPA Registration Counter on Monday evening or Tuesday morning during registration hours. Please attach a business card to your donation for proper recognition. If you have anyquestionsorneedadditionalinformation,please contact Erika Brooks at 817-337-8830 or erika@ nationalpawnbrokers.org. Thisyear’seventwillbeheldTuesday,June14,2011 at Caesars Palace and is sure to be a hit! Thank you for your generosity and we look forward to seeing you there! M AY 2 0 1 1

2011 PAW N E XP O

2011 PAWN EXPO

Pawn Expo 2011 Exhibitors & Seminars

3 CLiCk Media AAA Precious Metals, Inc ABC Diamond dba ABC Jewelry Inc Abe Mor Diamonds Adamas Inc. Adler Custom Signworks Advanced Media - Del Vecchio Productions Affiliated Auctions & Realty LLC Amchar Wholesale, Inc ATF Atish Diamond LLC Azuradisc B&F System Inc Best Diamond Big C / Dino-Lite Scopes Blue Dot Safes Bluestone Trading Co., Inc Bravo Store Systems Burrell Printing & Promotions Co., Inc. Business Watch International Carat Plus CashPass Network Central Refining LLC ChampionshipRings.net CompuPawn Craig Evan Small David H. Fell Di-Moksh Diam Inc. Dillon Gage Divine EMD Music Inc. Eyeson FBI/NICS Fillz.com FireRox First Texas Products G4S International GDesign LLC G&D Resources Garrett Metal Detectors Geib Refining Corp. Gemological Institute of America Generation Jewelers Gold Rush Refiners Golden Opportunities GunBroker.com Hi-Tech Precious Metals & Refinery Hoover & Strong I.D.S. Enterprises, Inc IAS Training ICE Signs Il Woo USA Co Innov-X Systems, Inc. International Gemological Institute J.P. Diamond Mfg. Inc. JP Smith Jewels of Los Angeles JoPaz Joshua J Fine Jewelry K.G. Stone Kee Gold Corp. La Familia Pawn & Jewelry Labtrade Gemological Laboratory Leads Online Livesay’s, Inc

“Developing Pawn Brokering Skills That Lead To Profits and Success” David Johns, Family Financial

How many businesses are there where the best customer, given a choice, would rather not be in that business to complete a transaction? Well, pawnbrokers are in such a business and in our industry, this fact is both a challenge and an advantage. This session will provide you with information that will allow you to “cash in” on what some might consider to be a real negative. You will learn:

• • • • • •

How to qualify your customer How to qualify the loan How to engage the customer for future transactions How to follow up with customers to improve redeems How to turn a forfeiture into a plus for you and the customer And other actions that work every day to enhance your profits and success as a pawnbroker

Join your fellow pawnbrokers for a lively and informative discussion about the basic tenets of our business and leave the session with actionable ideas and procedures

“10 Successful Steps to Becoming a Watch Guru – Effective Tools for Growing Your Watch Sales 100% in 12 Months” Anthony Fabiano and Martin Bruno, Watch Certification Services of America

Do you feel as if you are passing on watch deals because you just don’t have all the answers? Are you selling your product short, leaving profits on the table? Is your staff not closing the amount of watch deals they should be? Learn the 10 successful steps in growing your opportunities in buying/ selling/trading fine Swiss timepieces. Learn how to:

• • • • • •

Represent your business as the “Expert” Improve the sales cycle Keep the customer from visiting the competition by selling what you “don’t have” Increase profits with turnkey merchandising Accessory sales to increase “add on” sales opportunities The importance of certification and warranty coverage

Learn the secrets of wholesale watch brokers that will transform your existing watch business!

“Is Your Pawnbroking Business Well Protected From Potential Loss Scenarios?” John Fisk, Fisk Associates Ltd.

An in depth presentation of the everyday security matters, problems and their solutions which are experienced by Pawnbrokers, presented in terms we can all understand. The scope of the seminar includes; 1) Alarm Systems 2) Safes 3) Physical Premises Security 4) General Security Procedures 5) Stock Control & Inventory Procedures

“8300 / Red Flags Federal Requirements for Pawnbrokers” Robert Frimet, RMF Consulting

This seminar will discuss in depth the requirements of pawn brokers to file 8300’s as required by law. It will cover in detail all the triggers of filing, customer reporting, suspicious activity, and the audit function. We will also cover the Red Flags requirements as issued by the FTC.

Reach for the Stars M AY 2 0 1 1

www.PawnExpo.com

“Pawn Store Image” Donna Geary – Impact Visual Merchandising This program will use visual examples of best practice retailers to encourage participants to realize the importance of store image in today’s increasingly competitive environment. The presentation will cover all customer touchpoints, including their experience of the storefront, entrance, merchandising, customer service areas, signing and in-store communications, web, multi-sensory attributes (lighting, scent, sound, etc.) and sales associate interaction. Drawing from research on consumer behavior, retail best practice, industry trends and interviews with retail pawnshop owners, Donna Geary will outline the top fundamental steps to make your pawn shop more inviting, more productive, more memorable and more profitable.

“Detecting and Avoiding Illegal Straw Purchases”

John Badowski , Bureau of Alcohol, Tobacco, Firearms and Explosives This seminar will acquaint you with commonly used scenarios under which Straw Purchasers illegally obtain firearms. It will help you and your employees learn how to recognize and deter this illegal activity. If you are an FFL you won’t want to miss this seminar. “Don’t Lie” retailer kits will be provided to all attendees.

“Basics for the Bench – Tools & Techniques…Do’s and Don’ts When Cleaning, Repairing, Polishing and Plating” Andy Kroungold, Stuller, Inc. Topics include: • How to know which buff and polish to use on which metals • Proper cleaning and inspection of jewelry • Prepping and procedures for refurbishing • Rhodium plating This program will provide the knowledge and tools pawnbrokers should have on the bench.

“Employment Practices: The Triple Threat” — *Wrongful Termination *Discrimination *Harassment Kit Goldman and Memo Mendez, Workplace Training Network Inc. Exciting, fast-moving, interactive overview of 3 major litigation land mines you never want exploding at your business. These problems are also toxic for productivity and morale. Professional actors/ workplace experts will bring issues to life in entertaining, realistic “prime time” scenes. This practical, down-to-earth, high impact program teaches the legal boundaries and gives tools to effectively prevent and respond to unlawful conduct. Business owners and managers need this to protect the business and themselves from lawsuits. You see the headlines. Don’t become one!

“Have you Googled Yourself Lately?” Emmett Murphy - 3 CLiCk Media If you’re not on Google, you’re not on the internet. Find out how Search Engine Optimization can transform the way your customers find you. New Media Strategist, Emmett Murphy of 3 CLiCk Media, explains how Google indexes your website and how you can use it to your advantage. Google changes and grows every day. This seminar can educate those who already have strong search engine marketing, as well as those who are just starting. Have you ever wondered: • How can I get my business on the first page? • How do I get more visitors to my website? • How do I improve my Google Page Rank? From Google AdWords to link building, we’ll explore the essentials of SEO. Whether you “do-it yourself” or you have “experts,” no one can afford to miss this cutting edge seminar.

www.PawnExpo.com

M. Geller, LTD. M&M Merchandisers Inc. Marshall & Sterling, Inc. MetsCheck Inc. Mid-States Recycling & Refining, Inc Midsouth PM Militaria, Inc. Millennium Precious Metals Murphy Business & Financial Musical Instrument Reclamation Corp N Green and Sons Namano-Southeastern Findings National Diamond Co. National Pawnbrokers Association National Shrinkwrap NIL Diamonds Inc. North American Metals NTR Metals Office Depot Online Training Technologies PALAK DIAM, Inc Parcel Pro Inc. PawnMaster® (by Data Age) PawnMaster® Support (by Data Age) PawnTV Pawn Wizard - Fast Tax Pawnshop Consulting Group Pawnshopper.com Pease & Curren Pipp Mobile Storage System Inc. Plastic Jungle Presentation Box & Display Professional Texas Insurance Agency Qfund, Inc. Rapaport Group RMF Consulting Group, LLC Rocket Redbox, Inc. Rolland Safe Company RTI Disc Repair Security Source ShipandInsure.com Softwise Southern California Safe Company Spectro Analytical Instruments Stallcup Group, Inc. Stebgo Metals Inc Stuller, Inc. Surya Capital LLC Tal Ron Diamonds Ltd. Talfel Inc. The Buyers The Trendz Thermo Scientific Niton Analyzers Times Past Today’s Pawnbroker Union Life & Casualty Unique Diamond International LLC United Precious Metals Refiners Viraj International Inc. Watch Certification Services of America Wexler Insurance Agency White Pine Trading LLC Wilshire Consumer Credit Worldwide Diamond Co. Xcel Data Systems, Inc

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2011 PAW N E XP O

2011 PAWN EXPO 2011 Pawn Expo June 14 - 16, 2011 Caesars Palace, Las Vegas Attendee Registration Form

Mail Form & Payment To:

Fax This Form To:

National Pawnbrokers Association PO Box 508 Keller, TX 76244

National Pawnbrokers Association 817-337-8875

www.pawnexpo.com

Registration Information (Please complete one form per person)

Hotel Information Contact Caesars Palace directly for your room reservations. Be sure to mention NPA to obtain the NPA Discount Rate of $135 per night. Rooms are available on a first-come basis, so call early to reserve your room.

Last Name

First Name

First Time Attendee Yes / No

Company Name

Member ID #

Address City

State

Zip

Caesars Palace 3570 Las Vegas Blvd. South Las Vegas, NV 89109

Country

Email Address

( ) Telephone

( ) Fax

Reservations: 866-227-5944 or www.PawnExpo.com Group Name: National Pawnbrokers Association NPA Room Rate: $135.00

Registration Fees

Welcome Reception Step into a night of glitz and glamour. Come dressed as your favorite Hollywood movie star for an evening of food, fun and drinks.

We’ll see you June 14 on the Red Carpet!

Cocktail Reception Join us the evening of Thursday, June 16 for cocktails and hors d’oeuvres. After 3 days of seminars and trade show, it is a great time to relax and visit with old and new friends. Please note that we will begin at 5:30 pm to ensure you have plenty of time to enjoy your evening in Vegas.

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* If you require special assistance/accommodations to participate, please contact Erika Brooks at erika@nationalpawnbrokers.org

Earlybird Registration

Regular/Onsite Registration

Received by April 29, 2011 • NPA Full Member Registration* (Includes: educational programs, trade show, and receptions) $445

Make Money at the NPA Pawn Expo in Las Vegas NPA’s Private Trading Session provides you with the tools to do just that. • Bring your non-selling jewelry, diamonds, colored stones, and high-end watches to sell. •

Show your goods in the privacy of a secured Trading Room where you can negotiate your best deals with any of the Vendors you choose.

www.PawnExpo.com

$595

• First Time Attendee* (Your company has never attended the NPA Convention)

$345

$595

• Day Pass* (Tuesday, June 14) • Day Pass* (Wednesday, June 15) • Day Pass* (Thursday, June 16) * For NPA Member’s Only

$295 Closed $250 $250

$400 $400 $400

• Non Member Full Registration • Trade Show Only Pass

$845 $150

$995 $300

• Special Event Receptions(Purchased separately without the purchase of a full registration; enter number needed ) Welcome Reception Cocktail Reception

Tuesday, June 14 Thursday, June 16

• Meet & Greet Breakfast - Tuesday, June 14 at 7:30am (Complimentary with your 1st Time Attendee Registration)

Please RSVP Yes / No

• Golf Tournament – NPA Siena Classic Shirt Size______ Handicap______

$150

• Check Fraud & Anti Money Laundering Compliance Certification Program

$150

x $100 each x $100 each

$150

Monday, June 13, 2011 ~ 12pm-6pm (Pre-registration required by April 29, 2011)

TOTAL AMOUNT:______________

Convention Policies

Payment Information Registrations will not be processed without payment. Check enclosed. (payable to NPA) Visa

Mastercard

American Express

Credit Card #

Visit www.PawnExpo.com for additional details.

Received after April 29, 2011

Expiration Date

Name On Card Signature

• Attendance at the NPA Pawn Expo is open to any owner (or designated representative) of a pawn store.

• Manufacturers, Suppliers, or Distributors that DO NOT own/operate a pawn store must purchase an Exhibit Booth to participate in the Convention. • No one under the age of 16 years old will be permitted in the Exhibit Hall. • Cancellation Policy: Only written requests received at NPA prior to May 2, 2011 will receive a refund, less a $25 administrative fee. NPA regrets that refunds will not be given for no shows. • NPA may use pictures in any visual format of the Pawn Expo so as to promote itself, its conventions, and represent itself to various groups and constituencies.

Total $ Amount Enclosed

www.PawnExpo.com

If you have questions or need assistance, please call the NPA office at 888-808-7296

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NPA Enrolls 99 New Members The NPA would like to give a big THANK YOU to all of the new members who have joined the association since we began the 2011 membership drive last fall. To date, a total of 99 new pawn stores and industry partners have become NPA members. The counts by membership type are: Regular Pawnbroker International Pawnbroker Apprentice Pawnbroker Industry Partner

65 14 7 13

With your support and commitment to the organization, weâ&#x20AC;&#x2122;re able to effectively lobby in Congress for the protection of the pawn industry and provide services to help you conduct a more profitable business. Donâ&#x20AC;&#x2122;t forget to join the Member Forum, read the quarterly publication, National Pawnbroker, and visit the NPA website (www.NationalPawnbrokers.org) for the latest information. If you have any membership comments, suggestions, or ideas, please forward to Margie Swoyer, Director of Membership, at Margie@nationalpawnbrokers.org.

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S TATE N E W S Arkansas With precious metal prices reaching all time highs and no immediate end in sight, we are seeingbusinessesopenacrossthecountrybuying gold, silver and platinum in record numbers. As pawnbrokers, we provide short term cash to customers to make endsmeet,butthesebusinessesarelookingonlyatthebottomline profitwhenbuyingyourvaluables. Becauseofthisweareseeing changes in the state laws as it relates to gold buyers and it’s no different in Arkansas. ArevampofthePreciousmetalsdealerslicensinginArkansaswas wayoverdue.Therewasalreadyamechanisminplacetoregulate thebuyers,butwiththefeebeing$25tolicenseandtheoversight placedwiththeArkansasStatePolice;followuptopurchaseswas non-existent. The Arkansas Pawnbrokers Association, working with the State Police and the Chief of Police Association, totally reworkedthebilltoplacetheauthoritywithlocallawenforcement andrequiresimilarreporting,holdperiodsandaccountabilityto what pawnbrokers currently abide by. In addition, House bill 1841 and Senate bill 779, provided for a brick and mortar clause similar to the recently passed Alabama Preciousmetalbuyersbill.Thisrequiresanyonebuyingprecious metals to own their building or show proof of a minimum 1 year lease. No more setting up in hotel rooms and running full page ads in the newspaper to buy all they can and leave town with unreported and unregistered items. Most recently, the Division ofWeights and Measures shut down for several hours, an out of statebuyerfornothavingLegalforTradescales,sothesefolksare coming under more and more scrutiny. We are pleased to have been a part of the process and proud of the work done with the State Police to update the system to keep up with the changing times. House bill 1841 passed the full House by a vote of 91-0 and Senate bill 779 passed the Senate by a 35-0 vote and both are awaiting the signature of Governor Mike Beebe. Senator Bill Sample and Representative JohnVines, both from Hot Springs were the respective sponsors of the bills and we greatly appreciate their help.

Illinois Déjà vu All Over Again Well fellow Illinoisans here it is. We must me doing something right. Our IPA has grown to over 100 members! Yippie. Many consistent members are returningandnewstart-upshopsjoiningaswell.Our last IPA meeting in Champaign was jam packed.We had booked a room for 40 participants and had 52 attendees, a record.Don’tforgetthemeetingonSunday,September11,2011 as we will be having our election at that time. As you read this, the legislative season is in full swing. The NPA is diligently working the halls of congress to get some of last termsmoreodiouslegislationrepealed.YourIllinoisPawnbroker associationofficersareinthesameboatonlyclosertohome.Here

inIllinoiswearefacedwithourannualchallengeofabilllayingthe foundationforapawntax.Itseemsthateverystatehasitsshareof laws,rulesandregulationswhichinfringeonourabilitiestomake a living.Yet they still they seem to come up with more every year. This is why your participation is so important.You have all heard the mantra“get to know your legislators”a thousand times. It is moreimportantnowthaneverbefore.Weneedtohaveagreater numberofpawnbrokerswhocancalltheirstaterepresentativesand senators, not just 2 or 3.The number of pawn licenses in Illinois is growing. Let’s match it with more political participation. Be safe, prosperous and healthy.

Kansas Robin Tummons of Mission Pawn wasrecentlyelectedPresidentofthe Kansas Pawnbrokers Association. Bruce Harris of A-OK Pawn will serve asVice-President, and Stephen Owens of Patriot Pawn will serve as Secretary/Treasurer. Inothernews,aHouseResolutiontopermittransientgoldbuyers unrestricted access to Kansas consumers was withdrawn from consideration for the 2010 legislative session.

Mississippi The legislative session is winding down here in Mississippi and no negative bills were passed affecting our Pawn Industry.The Department of Banking and Consumer Finance had proposed license fee increases, inspection fees, and the ability to promulgate along with a few other changesbutthebilldidn’tmakeit.TheMississippi Pawnbroker’s Association was successful in introducing and gettingpassedatransientgoldbillwhichwilleffectivelydoaway with the“hotel”gold buying businesses in our state. This keeps us on a more level playing field and reduces the chance of stolen merchandiseleavingtownintwoorthreedayswithoutanychecks in place. We, at the time I am writing this article, are putting the finishingtouchesontheDixieEducationalConferenceandTrade Show at Harrah’s in Tunica, Ms. We sold out 40 booths to some of the best partners in our industry and it looks as though we will haveatleast200attendeesfortheannualAprilevent.Speakingat the Show is Brad Huisken from IAS Training, David Johns with Family Financial, Derek Ganter and Mark Craven (IRS) and Angi Quinn-Oestreich, form Mister Money USA . I look forward to seeing everyone in Vegas! Kevin Macdonald President MS Pawnbroker’s Association

Ohio Dear OPA members

By the time you read this, we will have completed at least one State approved continuing education session. State News...Continued on Page 46

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S TATE N E W S State News...Continued from Page 44

I would like to remind everyone how important it is for each pawnbroker licensee in the State of Ohio to make sure you completeyourrequiredcontinuingeducationhourspriortothis educationalperiod’send.Thecurrenteducationalperiodwillend on June 30, 2012. The State Department of Commerce, Division of Financial Institutionshasbeeninitiatinglicenserevocationhearingtothose pawnbrokerswhohavenotfulfilledtheirc.e.requirements.We want you to know that there are many opportunities to acquire your c.e. hours through the O.P.A. The educational arm of the Ohio Pawnbrokers Association provides more scheduled continuing education hours than all other approved providers combined. Last c.e. period, your OPA sponsored c.e. hours totaled in excess of 35. Please watch your emails for news about upcoming continuing educational opportunitiesthroughyourOPA. Ifwedonothaveyourcorrect email address, please forward it to our OPA secretary Rhonda Johnson at rhonda@jbpawn.com. In other news, your OPA continues to monitor several pieces of legislation designed to increase regulations on our industry. Most of this legislation is misguided in our opinion. Sponsors havebeenfedaneverendingdietofmisleadingandsometimes untruthful information about our industry. Your officers and boardmembershaveworkhardtocorrectthesemisconceptions. We will continue to keep you advised as to the status of these legislative issues. As always, please feel free to contact me or any of your officers if we can assist you in any way.

Texas STAP 2011 Spring Owner’s Meeting: TAP’s 2011 Board of Directors opted to forgo our normally scheduled Spring Owner’smeeting.Weallagreeditwouldbe moreprudenttosavethetimeandexpense ofthismeetingandfocusoureffortsonour FallConvention&Expo.Theboardalsoagreedtogivingdirectly to our PAC fund since we will not collect PAC money during this event.ForthosewhocontactedTAPregardingtheevent,please consider attending the convention instead.

CONVENTION TIME: We hope all Texas Pawnbrokers will MARK YOUR CALENDAR and attend our biggest event of the year, TAP’s Annual Convention & Expo, hosted at the Embassy Suites DFW North in Grapevine, TX, October 21 – 23, 2011.We are excited to be combining many of our social events with the NPA’s Board of Directors who will also be at the same hotel for their board meeting. For moreinformation,pleasecontactourConventionCommittee members; Vincent Santoscoy, vince@ loanstarpawn.com, Danielle Graham, cpj1@sbcglobal.net , and Jack Bonds, pawnloans007@hotmail.com TAP’s Lance Corporal Juan Rodriguez Scholarship Fund: Please email TAP headquarters if you know a 2011 senior high school student or college underclassmen thatisdeservingofaScholarship.We will honor 4 students with a $250.00 check. For a list of requirements and torequestanapplicationcalloremail TAP.

Lou Tansky President Ohio Pawnbrokers Association 2600 St. Clair Ave. Cleveland, Ohio 44114 216.325.5626 www.unclebenspawnshop.com

South Carolina SCwasproudtohavebeenrepresented in our nation’s capitol in March at the NPA legislative conference in which two of our freshman house representatives were visited as well as our Senior Senators. The issues we face on a federal level as wellasclarificationofourpositionontheStatelevelwereclearly reviewedandwellreceived.Iencourageeachpawnbrokertotake time to familiarize yourself with each Federal and State Senate andHouserepresentativeinyourdistrictandourstateasawhole; this awareness and connection is vital to our industry. While we are making our plans for the NPA convention in Las Vegas I would remind you that the Southeast Regional Tradeshow and Convention plans are in FULL swing.This year’s venue will return to Greenville, SC and we are gearing up for a recordbreakingattendance.Informationforbothconventions

canbefoundinthisissue. Foradditionalinformationpleasecall Janis Feazelle 803-438-7686 or email pawnpeople@aol.com. I look forward to seeing old friends, gaining new friendships, increasingbusinessrevenue,continuededucationandthegreat deals our vendors offer.

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Membership Update: We are so thankfulforourmembersforkeeping TAP alive and well. Our numbers remain strong but we are challenged every day to grow our Association. We continue to encouragepawnbrokersinTexastobecomeamemberofTAP.We needfinancialresourcestomaintainthe“hedgeofprotection”that manyTexasPawnbrokershaveestablishedandfortifyeveryyear. Youshouldknow,wehaveaverywellrespectedLobbyistinAustin thatgetsthejobdonetimeandtimeagain.Alsopleaseunderstand therearesadlyonlyahandfuloffolksoutthereworkingrelentlessly tokeepallofusinbusiness.Theireffortshavepreventedunneeded rule changes that could possibly close the doors to our shops forever. If you ever meet a TAP Board of Director, please thank him or her for the unselfish way they take care of us all. We also applaud the efforts of NPA Legislative Team! In Closing, Be a Member of TAP and Stay A Member of TAP M AY 2 0 1 1

PAWN BR OKE R U N IVE R S IT Y

At The Loan Counter

ne of the many fascinating aspects of the Pawn Industry is the fact that every day brings new challenges and opportunities that can be turned into successes for pawnbrokers and their customers. Pawnbrokers have been around for a very long time and we have all survived financially during difficult times and enjoyed record profits during good time. There is a reason for this fact, and it is centered on the notion that helping our customers is just plain good business. The days of a gruff greeting to a customer when they enter a pawn store have long since been replaced with positive greetings and attitudes that help our customers be more comfortable with the loan transaction that is about to take place. Talking to customers as if they were family or friends is a smart move Simple and straightforward conversations with customers will typically provide the information we need to understand if the customer wants a loan or if they really want to sell an item. The difference between these two possibilities can be costly or profitable, depending on how we complete the transaction. If a customer has no emotional attachment to an item being offered for pawn, then the transaction should be converted to a buy to allow a quicker profit than if a loan is made that later forfeits. If there is emotional attached to an item then we should maximize the loan without over extending the customer. Knowledge and a clear understanding of a customer’s needs comprise powerful tools for the successful pawnbroker. Every loan customer who enters our stores is a potential retail customer and should be considered as such. Learn about your customer’s future purchase needs by talking about your store layaway program while completing the loan transaction. If the collateral you have before you would clearly allow you to bump the loan up, offer to place something on layaway for your customer by increasing the amount of the loan and using those dollars to write a layaway. You will then put in place two good reasons for the customer to return to your store in the future. Alternatively, learn the birthday of their spouse or family members and offer to call them a couple of months out to put something on layaway for these important people. Ask about anniversary dates or other significant future times in the life of your customers and offer to contact

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By David Johns

them if that is acceptable to remind them of these important events. This is a service to your customer and not an intrusion. It also suggests to your customer you are sincerely interested in them and are offering exceptional customer service. This practice will allow you to build a great layaway business that can provide sales growth and future customer traffic in you store. Learning to be a good pawnbroker is not very complicated if we keep ourselves and those who work in our stores up-to-date on critical information about how we loan and how we buy. To do this well, we should keep everyone working in our stores informed about our loaning practices for the day. Our practices can often vary based on the price of precious metals, our current retail inventories and the particular items presented for collateral. Never assume those who work with you will always do what you would do. Inspect, stay in the “manager’s circle” for your store and pay attention to the transactions in your store. Successful owners/managers do not spend time in a back office or out of the store unless there is a trusted person on staff you can think and act like that owner/manager. Earning a good profit or yield on your loans and a satisfactory gross profit on your sales is not a “luck-of-the-draw” kind of thing. It is the result of effective management and exceptional customer service. Finally, don’t forget to avoid “falling in love” with your inventory. Every day items available for sale occupy space on your sales floor there is a cost to you. Turn your inventory as often as is practical to keep a steady flow of funds to loan to your pawn customers, even if you sell an item for less than cost. After all, we are in the business of selling money, and collecting pawn service charges will provide us with greater profits than trying to hold on to an item because of gross profit concerns. Turn inventory at a price and loan that money to increase your pawn loan balance. Accommodate your customers by maximizing their loans and build a solid customer/sales base through an aggressive layaway program. We all provide a much needed service to our customers, and there is nothing wrong with enjoying profits and success in the process. Remember, it all starts at the loan counter. Good Loaning.

Developing Pawn Brokering Skills That Lead to Profits and Success June 14, 10:30am -11:45am

PAWN BR OKE R U N IVE R S IT Y

EMPLOYMENT PRACTICES: THE TRIPLE THREAT • Wrongful Termination • Discrimination • Harassment By: Kit Goldman

ithalltheregulationonaPawnbroker’splate,employment practices are often not a priority. There are only so many hours in the day. You have a lot of pressing bottom line issues to deal with. Speaking of the bottom line, however, there are 3 employment litigation landmines you need to know about in order to prevent them from detonating in your workplace: Harassment, Discrimination and Wrongful Termination. If they do go off, It’s very much a bottom line issue -- and not on the credit side of the ledger. Thegoodnews: itcanbepreventablewithsomebasicknowledge and awareness of what is and what is not lawful, and the practical steps to comply. We look forward to providing you with that in a fast-moving,entertaining,interactive75-minuteseminaronJune 16 at the Pawn Expo in Las Vegas. This presentation will be as far from an abstract, talking-head lectureasyoucanget.Asbothworkplaceexpertsandfacilitators/ professional actors, we will be performing entertaining, realistic “prime-time” episodes as a springboard for our interactive discussion with you. After presenting at the CLSDA in Oct., 2010 it was clear that our“Edutainment’format is a good fit for your high voltage industry! For example: meet Roger, Manager or Owner of a fictional Pawn shop. He’s liked and respected, has an old school, touchie-feelie styleandastreet-smartsenseofhumor.Everyoneknowshe’sgota good heart and doesn’t mean anything by it. Margo is Roger’s employee. She’s on the“dark side”of 50.There is a supervisoryslotopeningup. Margowantsthepromotionandhas seniority.She’sworkedmostlybackoffice.Thiswouldmeanmore customer contact and supervising much younger employees. Rogerisconsideringher,buthe’sgotconcerns,includingshemay be a little stodgy or uptight for the job. He’s a straight-up guy and calls her in to talk about it. He gently teases her about her Catholic schoolupbringing,referencesherageandthefactshehasmedical problems and it’s a big no-no for supervisors to miss work. He also wantstomakesureshe’scomfortablewiththesometimesraunchy banter and strong language from their colorful customers. To Roger’s surprise, things don’t go well. Margo’s offended. She gets upset, tells him she thinks it’s illegal for him to deny her the promotionbecauseofherageormedicalproblems,whichareher private business to begin with. She calms back down, but now Roger is upset by the accusations.

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He waits what he considers to be a reasonable amount of time, callsMargoin,pointsoutdeficienciesinherworkperformanceand budgetconstraints,andregretfullyterminatesher.Hegivesheragood severancecheckandofferstogiveheragoodreference.Endofstory, right? Wrong. Somemonthslater,Rogerandthecompanyareservedwithalawsuit alleging harassment, discrimination, wrongful termination and unlawfulretaliation.Giventhefactpatternandthebiasofjuriesfor plaintiffs in such cases, Roger and the business may take a big hit, especiallyinstateswheremanagershavepersonalliabilityforengaging in such conduct. So, what are some of the major issues in that hypothetical? Here’s a snapshot: • Harassment: How raunchy is the banter with some of the customers? What about the Catholic school comment? How will Rogers’soldschool,touchie-feeliestylefitintothepuzzle?Youwill learnwhatconstitutesharassment,howtopreventitandwhattodo if it rears its ugly head. • Discrimination: Roger indicated her age and medical condition might be barriers to advancement. Very thin ice! Age and disability are protected categories.We will inform you about all of the protected categories under Federal and State law and legal criteria for employment decisions and perks! • WrongfulTermination: Firing someone over 40 has become a very slippery slope.You may think if it’s at will employment firing someone is no problem, but think again.You need your ducks in a row! • UnlawfulRetaliation:Margocomplainedandmentionedlegal action.Shortlythereafter,shewascanned.Rogersaiditwasdueto performanceproblemsandbudgetconstraints.Isthereanything in Margo’s personnel file to back that up?Will the books honestly supportthatclaim?Wewillteachyouwhatconstitutesretaliation, one of the fastest growing areas of employment law litigation, so you can avoid it! If Roger had basic awareness and knowledge about these issues, he surely would have avoided needless risk for the company and himself, while still taking care of business. We look forward to sharing this essential knowledge with you on June 16 in a dynamic, relevant and enduring way. See you there!

Employment Practices: The Triple Threat June 16, 8:30am-9:45am

P R E S S R E LE A S E

Senate Bill to Regulate Cash Converters: Much Needed, Long Over-Due North Carolina Pawnbrokers Association

n important piece of legislation is currently in review by the Commerce Committee and appears to be on the way to approval. Senate Bill 144 will place the so-called“cash converters” under the same reporting regulations that the pawn industry has operated with since 1989“Cash converters” operate in much the same way as pawn dealers. They purchase pre-owned merchandise for cash (or check). However, the simple name difference allows them to operate unregulated. The lack of oversight of the cash converters has created a possible haven for thieves to unload their stolen merchandise. Contrary to common public opinion, pawn stores take in very, very little stolen property because the criminals know that pawnbrokers are required to keep detailed records and report all of their purchases to the police. As a concerned citizen, you should demand that this legislation pass. If you had something stolen, would you want the police to only look at a very few places that buy used merchandise, or would you want them to look at all of them?

not accusing cash converter type stores as dealing in stolen merchandise. I am only stating the facts. There are a lot of property crimes. Very, very little is turning up at pawn stores. It has to be going elsewhere. Where is it going? You will never know unless you check.

Payment in Full Within 24 Hours!!

With the passage of SB 144, introduced to the Finance Committee on February 24, 2011 by State Senator Wesley Meredith, District 19, along with 26 bipartisan co-sponsors, “cash converters” will be subject to the same reporting regulations under which the pawn industry operates. Many otherstatesandmunicipalitiesacrossthecountryhavealready done this. I applaud the sponsors of this timely and important legislation for their vigilant efforts to thwart crime in North Carolina. SB 144 will protect the interests of law abiding citizens and help to solve more property crimes.

Pawn store operators are required to request all pawn customers to provide proof of ID and to sign a contract stating that the item to be pawned or sold belongs to them. Copies of all documentation along with digital security recordings aid law enforcement in identifying suspects. Criminals know that they’re basically turning themselves in if they come in to our stores with something stolen. If an item is stolen, the person trying to pawn it is guilty of obtaining money by false pretenses – a serious felony. What thief would want to turn misdemeanor larceny into a felony? Taking in stolen items is bad for business, and modern pawn store owners train employees to spot suspicious items and behavior. In a case where suspected items are confiscated, the victim receives the property back and a criminal goes to jail, but the store loses all money paid for the items. Thanks to inaccurate stereotypes in movies and television, some people still think pawn shops are dingy junk stores completewithshadyproprietorsdealinginstolenmerchandise. However, today’s modern pawn shop is a highly-regulated, responsible member of the community. The National Pawnbrokers Association statistics report that approximately 1/10th of 1% (0.1%) of items received by pawnbrokers nation-wide are suspected of being stolen – not proven, just suspected – which means that 99.9% of items are not. Any statistician will tell you that a number so small is statistically insignificant. And, no other business dealing in second hand merchandise can boast such numbers. I am

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Sale Price

$199.00

456 W. Columbus Dr. Tampa FL 33602 Phone: (800) 476-2715 Fax: (800) 476-8016

Email: info@LivesaysInc.com www.LivesaysInc.com

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P R E S S R E LE A S E

Collateral Loan and Secondhand Dealers Association (CLSDA) re-brands as California Pawnbrokers Association By Emmett Murphy California Pawnbrokers Association (CAPA) is an association of pawnbrokers and secondhand dealers and is the only one of its kind in California.

he pawn industry has recently been gaining ground. As a result of the public’s fascination with cable’s most successful TV show, Pawn Stars, and the role pawnbrokers have played as the safety-net lender to millions of Americans through the financial crisis of 2009, pawn has become mainstream. “2010 was a transformative year for California pawnbrokers” said Diane Taylor, president of the newly branded California Pawnbrokers Association.“The new name accurately addresses the association’s core focus - protecting and promoting this vital industry.” California Pawnbrokers provide short-term small dollar loans to Californians who are not able to receive loans from traditional sources. The FDIC reports in a 2009 national survey that approximately 27% of the US population is un- or under-banked. As estimates for California more than double the national average, it is clear that alternative forms of lending are absolutely imperative for Californians.

“The members of the California Pawnbrokers Association are regulated on the local, state, and federal levels,”Taylor notes. The association also represents the interests of thousands of

secondhand dealers state-wide.“In the current economy, we understand the importance of our industry, and by changing our name to the California Pawnbrokers Association and redesigning our logo, we have a stronger impact when interfacing with legislators in Sacramento.” California Pawnbrokers Association (CAPA) is an association of pawnbrokers and secondhand dealers and is the only one of its kind in California. CAPA’s members strive to maintain the highest level of ethical conduct by following established best practices and adhering to federal, state and local laws and regulations. Since it’s founding in 1956, we have served the interests of tens of thousands of responsible pawnbrokers and secondhand dealers. The association serves it’s membership through legislative advocacy, professional education, industry programs and legal resources. Our members strive to be valued andrespectedbytheircommunitiesbytakingpartincommunity outreach programs, as well as encouraging and fostering good relationships with law enforcement, state legislators, local government and community leaders. For more information please visit www.CaliforniaPawnbrokersAssociation.org.

Secure your place in the pawn revolution today. First 1000 stores receive Bravo Store Systems for just $149.00 per month. Early adaptors, secure your place in the revolution changing the way pawn business is done. One look, and you’ll wonder how you ever did business without it. Call 888.407.6287 for a FREE demonstration. To reserve your price and boarding date email us at info@BravoRevolution.com Bravo Store Systems is the most advanced pawn store systems software - ever. Advanced, yet so incredibly simple to install and operate, Bravo software will facilitate lowering costs, raising revenue, while increasing productivity. And your employees will love it too!

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We do not criticize your goods and never try to low-ball you. Guaranteed better prices paid than your current vendor. Member of Diamond Dealer Club, N.Y., NPA, JBT, Gem & Jewelry Council, India

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C AL ENDAR O F E VENTS MAY 2011

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Midwest Convention FRIDAY, MAY 13 – SUNDAY, MAY 15 Chicago, IL Contact: Ron Stempkowski / 219-261-3173

JUNE 2011

NPA Board Meeting

NPA Annual Membership Meeting

NPA Pawn Expo

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Monday, June 13 Caesars Palace, Las Vegas, NV Contact: Erika Brooks 817-337-8830 erika@nationalpawnbrokers.org Visit www.pawnexpo.com for more info Tuesday, June 14 Caesars Palace, Las Vegas, NV Contact: Erika Brooks 817-337-8830 erika@nationalpawnbrokers.org Visit www.pawnexpo.com for more info Tuesday, June 14 - Thursday, June 16 Caesars Palace, Las Vegas, NV Contact: Erika Brooks 817-337-8830 erika@nationalpawnbrokers.org Visit www.pawnexpo.com for more info

SEPTEMBER 2011

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Southeast Regional Conference Friday, September 23 – Sunday, September 25 Hyatt Regency, Greenville, SC Contact: Janis Feazelle / 803-438-7686

OCTOBER 2011

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NPA Fall Board Meeting Friday, October 21 - Saturday, October 22

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Texas Association of Pawnbrokers Convention Friday, October 21 – Sunday, October 23

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DFW Embassy Suites, Dallas, TX Contact: Erika Brooks 817-337-8830 erika@nationalpawnbrokers.org

DFW Embassy Suites Contact: Peggy Roden / 972-506-0203

CLSDA 55th Annual Convention and Exposition Friday, October 28 – Sunday, October 30 Location Long Beach, CA Contact: Kim Andosca / 209-786-5115

Mark your calendar today. Classified Ads Available $3.00 per word • Minimum $30.00

Contact NPA office to reserve your ad spot 817-337-8830 erika@nationalpawnbrokers.org M AY 2 0 1 1

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