FAQ   

 

 

Tag and hold is a procedure that can work well for the pawn broker industry, but creates significant problems in the recycling industry. Tag and hold is a part of the basic business model for the pawn industry as a pawn begins as a collateralized loan. Items are only sold after the collateral is surrendered. 

 

Scrap processors take unneeded materials, then convert and package them as specification-grade commodity materials. Almost by definition, commodities are subject to price fluctuation. Restricting the ability to sell materials on demand can unintentionally impose a substantial financial penalty on the processor and could disrupt the need for feedstock material for other manufacturers in the community or elsewhere.

 

Tag and hold is also not practical for most processors because of the sheer volume of materials that move in a yard each day. The ability to comply would be dictated by the size of the scrap facility. Segregating materials that come in each day into piles would require enormous amounts of land that are simply not found in most scrap recycling facilities.