Collateral Lending Frequently Asked Questions
What type of security measures does Vasco take to protect my asset while in their control?
We have a security room that houses a large, fire-resistant metal safe for all small valuables. We have an advanced alarm and surveillance system protecting our entire building. All items will remained sealed during the duration of the loan. All small items are placed in a tamper resistant bag signed by the client. When redeeming a loan, the customer is able to match the serial number assigned to their item and verify their original signature. For artwork and other sensitive valuables, we have a temperature controlled room to maintain the condition of the artwork. All valuables on our premises are insured.
How does the loan process work?
You can fill out the form on the homepage, call to set up an appointment (949.679.2300), or email us at email@example.com. When possible, please submit a photo of the item and any information you have. All items are appraised and evaluated by our experienced appraisers. Once a value is determined, the funding process usually takes about 15 minutes. We will fill out basic paperwork, explain the loan terms, and after you sign a contract, we will give you the money.
How long is the loan term?
The loan can be as long as you wish. Our loans are typically for 90 days, but can be extended if the interest payments are up to date and every interest payment has been made on time. You can take a loan for 1 month, 6 months or several years.
How much interest will be charged for the loan?
California’s Department of Justice sets fee structures on loans under $2,500. However, Vasco only provides a minimum loan of $2,500 and thus rates are negotiable and fall anywhere between 2-10% with an average of 5%. The fees include operational costs such as bookkeeping, transporting and storing your asset, insuring your asset, and more. Please contact us for information on our loan rates.
What is needed to qualify for a loan?
California State law requires that you must be at least 18 years old to make a loan and present a valid government issued photo identification (i.e. drivers license, passport, etc.). You will also need to provide us with your asset to be held as collateral until redemption.
Will the loan be reported to the credit bureau?
Because the loan is a collateral loan, this loan will not appear on your credit regardless of whether or not the loan is repaid. We will not report your loan to any credit reporting agencies, even if you default on the loan. If you are trying to improve your credit worthiness, we will be happy to provide a letter of credit recommendation at the end of your loan term provided all interest and principal is repaid.
What will happen to my valuables during the loan?
A collateral loan involves Vasco Assets giving you cash while securing (holding on to) your valuables during the duration of the loan. During the loan process, you can feel confident that your items are safe, secure, and well protected.
Do I lose ownership of my items when I bring them in?
No. You will continue to own your items during the duration of the loan, we will simply be holding on to them as collateral. If you fail to repay your loan, your loan will default and collateral becomes property of Vasco Assets.
Do most loan customers lose their merchandise?
On average, about 80 percent of all loans are repaid. Repeat customers make up a majority of the business, similar to any other lending or retail establishment. We establish relationships with our customers because they often borrow against the same items repeatedly. We offer non-recourse loans, looking only to the item being pledged to recover the investment if a customer chooses not to repay the loan.
Do Vasco customers enjoy the same protections under federal law that customers of other financial institutions enjoy?
No. Collateral loans are the only type of consumer credit that requires reporting to local law enforcement agencies. In California this reporting is required daily, and must include extremely sensitive personal information about the consumer (i.e. ethnicity, gender, address). Much of this information qualifies as “non-public personal information” under federal privacy law and is entitled to protection as such.
Are Collateral Loans regulated by the same laws of other financial institutions?
Yes, we are governed by all of the major federal laws that apply to entities designed as financial institutions. The federal laws that regulate the collateral loan industry are Patriot Act, Truth in Lending Act, Equal Credit Opportunity Act, as well as Data Privacy and Safeguard of consumer information as part of the Federal Trade Commission (FTC) Rules. California has regulated the collateral loan industry for decades, and most lenders are licensed and regulated by local authorities as well.
Why would someone be interested in a collateral loan?
We offer our customers a quick, convenient and confidential way to borrow money. A short-term cash need can be met with no credit check or legal consequences if the loan is not repaid. Collateral lending imposes a discipline on the borrower that other lenders do not. Collateral loans do not cause people to overextend credit or go into bankruptcy.
How much should I expect for a loan on my item?
Loan amounts vary according to the value of the item. There is no minimum dollar amount allowed on a transaction but the maximum amount may be set by state laws. Your loan amount will be determined according to other factors as well such as demand and condition of the item. Not all lenders are the same and price will vary.
How do you determine the value of the item?
We base the value of the item on current appraised value, its current condition and the ability to resell the item. We have in-house experts and utilize various research tools to determine an item’s value and get you the most money for the item. The appraisal process varies depending on the type of item—for example, jewelry is evaluated differently than a vehicle. All items that are carefully tested to ensure their quality.
If I accept the loan, what do I receive?
First, you will receive the agreed upon amount of money. We can provide cash, check or wire transfer. Second, you will receive a claim ticket. Do not lose the ticket, as it is necessary to redeem your merchandise. The ticket will provide a description of your merchandise, the amount financed, all charges, and the terms of the contract.