Pawn loan forfeiture rate: what’s normal, and how to measure yours

Two ways to count

Redemption rate is the share of loans paid off and the item collected. Forfeiture rate is the share where the item was kept instead. Loans still open are not in either number yet.

You can count either one by loans (how many tickets) or by dollars (how much principal). They give different answers, because small loans and large loans do not behave the same way.

Where “85%” comes from

In 2012, Vanderbilt University published an interview with Paige Marta Skiba, who studies pawn lending. She said: “About 85 percent of pawn shop borrowers return to repay their loans, although we do have anecdotal evidence that this number has deteriorated in the last few years.”

Experian repeats the 85% figure in a 2026 article and attributes it to the National Pawnbrokers Association. When we checked the NPA’s industry FAQ page on September 23, 2026, it did not state a repayment rate.

So the best-known number is more than a decade old, counts borrowers rather than loans or dollars, and came with a warning from the person who said it.

What the chains’ books show

The public chains do not publish a redemption rate, but their cash flow statements show how much loan principal was repaid and how much was forfeited into inventory. From those, we calculated the forfeited share of principal settled:

These are our calculations from the filings, not figures the companies report. They are dollar-weighted, cover every country each company operates in, and do not separate renewals. They measure a different thing from the 85% figure and should not be read as contradicting it.

The law sets the clock

How long a borrower has to redeem depends on the state. Texas caps the maturity of a pawn at one month and holds the pledge at least 30 days after maturity before the pawnbroker may take it. Florida forfeits unredeemed goods after the 30-day period following the maturity date. FirstCash describes its terms as typically 30 to 90 days plus a grace period of 14 to 90 days, depending mainly on local law.

Check your own state’s statute for the exact periods before you count a loan as forfeited.

How to measure your own

1. Group loans by the month they were written.
2. Only count a month once its loans have all matured and passed the grace period; open loans are neither redeemed nor forfeited.
3. For each month: redeemed ÷ (redeemed + forfeited), by count and by principal.
4. Treat a renewal (paying the fee to extend) as the same loan continuing, not as a redemption.
5. Break it down by category and by the employee who wrote the loan.

Why it matters at the counter

EZCORP’s annual report says it plainly: the success of its pawn business largely depends on its ability to assess the probability of redemption and the resale or scrap value of the collateral. A category where most loans come back earns fees; a category where most are forfeited is really a buying decision with a delay.

FirstCash notes it has no minimum or maximum loan-to-value restrictions; the loan amount is a judgment. If a category forfeits often, lend on it as if you were buying it, from what the same item actually sells for.

Where PawnCounter fits

PawnCounter’s loan book shows redemption and forfeiture by category and by who wrote the loan, how long redemptions take, and the interest collected, from the files your POS already produces. Customers are counted, never named. It is part of Starter; the free Profit X-Ray is the place to start.

Sources

1. Vanderbilt University News, "Pawnshops" (October 26, 2012), quoting Paige Marta Skiba
2. Experian, "What Is a Pawn Shop Loan?" (May 28, 2026)
3. National Pawnbrokers Association, Pawn industry FAQs
4. FirstCash Holdings, Form 10-K for the year ended December 31, 2025 (SEC EDGAR)
5. EZCORP, Form 10-K for the fiscal year ended September 30, 2025 (SEC EDGAR)
6. Florida Statutes 2025, section 539.001 (Florida Pawnbroking Act)
7. Texas Finance Code, chapter 371 (Pawnshops)