PPSS and Pawn Fees

  Collect Periodic or Partial Payments. (details)

  Variable Fee Schedule Overrides Normal Pawn Fees. (details)

 Maximum Allowable Interest can be set for 5, 10 or 15 days. (details)

 Prorated Interest is automatically computed and displayed but it can be 'turned off'. (details)

 30-Day Periods within Longer Loan Periods (Arizona and Nevada): Charge variable rates per 30 days within 90 or 120-day loan periods (details)

 Pawn Fees by Category - Different fees may be applied to different items by placing items in categories and assigning pawn fees to the categories.(next section below)

Procedures for Assigning Fees to Categories:

1. Select Inventory on the Main Menu, then Categories.
2. Add a new category or edit an existing category. (It is helpful to use category names that reflect the amount of interest. Example: Guns-20 for 20% interest.)
3. Enter the fee amount (in decimal form) in the field named '% Interest'. Save changes and exit.
4. When entering a new pawn record or editing an existing pawn record, select the applicable category for the item. PPSS will auto-compute the stipulated fee amount.

Pawn Fees are set in File > Program Setup > Pawn Fees.

There are 22 (twenty-two) possible fees in PPSS:

When a New Pawn Record is created, PPSS uses Pawn Fees designated in Program Setup to auto-compute the total fees applicable to each pawn item and to the pawn record. The fees may be adjusted for each pawned item when the pawn record is being created.

Applying Pawn Fees

Pawn interest rates now are applied on three levels.

• 1st Level - The item category pawn rate will apply.
• 2nd Level - If no category pawn rate is specified, fees in the Variable Loan Rate Schedule apply.
• 3rd Level - If no 1st or 2nd level exists, the 30-day-loan interest rate will apply.

It's good practice to specify 2nd and 3rd level rates so they will be applied in the absence of a 1st-level rate.

In effect each item on a pawn ticket has its own pawn rate. For instance:

Effective Pawn Interest is displayed in reports and pawn details.

The interest rate for each item is displayed in the item record (in the Inventory Work Area).

The obvious advantages to computerization are that employees know what the fees are and losses from mistakes are reduced because the software program accurately computes and displays each fee and totals the amount of fees. Management also has complete flexibility and ease in assigning and changing rates.

Prorated Interest

PPSS computes prorated interest daily. The amount is updated each time the user interacts with the pawn record.

Prorated interest is included in the amount due at redemption. The default pawn ticket will show 'Projected Period Interest' if no prorated interest has accrued (for a new pawn). The pawner can know the cost to redeem at loan maturity.

Turn Prorated Interest Off

To turn prorated interest 'off', on the Pawn Opt Screen in Program Setup, enter the 30-day rate in this field:

Click Save/Exit to save the changes and exit Program Setup.

Turning prorated interest off will turn proration off for periodic fees.

If only periodic fees are charged (and not interest), turn proration off by entering .00001 in this field:

Period Payment

If the pawner wants to pay accrued interest and fees to avoid forfeiting the pawn, click on 'Period Payment' in the Pawns Work Area Menu:

A window appears displaying the amount to collect. Click Save to complete the transaction. Click 'Save, Preview, Print' to save the transaction and print it. Click 'Cancel' to close the window and not save any entry.

Partial Payment

If the pawner wants to make a partial payment, click on 'Partial Payment' in the Pawns Work Area Menu:

Enter the amount of the payment. Click Save to complete the transaction. Click 'Save, Preview, Print' to save the transaction and print it. Click 'Cancel' to close the window and not save any entry.

Maximum Allowable Interest

Most jurisdictions restrict the amount of interest that may be charged.

In PPSS, click on File then Program Setup the Pawn Opt (Options). Enter max allowable interest for the three time periods (5, 10 or 15 days). If the pawn is redeemed in 5 or less days, the maximum interest that can be charged is as entered. After 15 days the interest charged has no maximum. Leave the settings at 0 to disable this feature.

Repawn the Same Item(s)

1. In Program Setup on the 'Pawn Opt' tab, check 'Reuse previous pawn record on repawn':
   
2. In the Pawns Checks Loans' work area, double click on the pawn.
3. Click on 'Reopen this pawn':
   
4. It may appear that 'nothing has happened' but look at the last record in the Pawn work area. A new pawn with the same item(s) should be there showing status as 'Current' with the same starting parameters as the original.
5. A new pawn ticket may be printed by selecting the pawn and clicking on 'Print Pawn Ticket' on the right.

Variable Pawn Fees

The Variable Fee Schedule can be used for a Document Processing Fee for jurisdictions like Washington State. It overrides amounts entered for normal pawn fees. Late fees, lost ticket fees, gun fees will still apply. (The Schedule is on the Pawn-Fees Tab in Program Setup.)

The Variable Interest Rate Schedule will be automatically entered on new pawns and applied to existing pawns as they age. (The Schedule is on the Pawn-Opts Tab in Program Setup.)

Per pawn ticket fees are applied once to each new pawn. Per loan period fees are applied once per loan period after the end of each period. Fees are not prorated.

30-Day Periods within Longer Loan Periods

Arizona has a 90-day Loan Period. Nevada has a 120-day Loan Period. Within each Loan Period are 30-day periods with rates for each 30-day period. Arizona's maximum allowable rates for the 3 periods are 8%, 8% and 6%. Nevada's maximum allowable rates is 10% for each period.

In Program Setup, on the Pawn Opt, make the following settings:

1. Loan Period (Days): 30 (This is the 30-day period within the longer loan period.)
2. Enter the applicable rate for periods 1, 2 and 3 (shown here as 8%, 8% and 6%).
   • Use decimal form.
   • For Nevada's 120-day period, the rate for the 4th period will be the same as for the 3rd period.
   • If all rates are the same, only enter the rate for the 1st period.
3. To prevent prorated interest, enter the 1st-period rate in the field named 'Do not prorate 1st month interest'.

Another way to vary I% for specific items is to Set Rates for Categories and assign the category to items. If rates are set for the 2nd and 3rd periods, Category Rates will not apply.

If a Loan Period other than 30 days is needed, set 'Loan Period (Days)' to the number of days and enter the I% for the period in the 1st-Period Field.

The shop is responsible for determining when a loan period has expired and for taking appropriate action at that time.

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