Below we have listed a number of facts that you should know about pawnbrokers. So much has changed over the years regarding pawnbroking. The likes of professionals and new regulations have made this industry very acceptable.
In the UK every person who wishes to set up as a pawnbroker must actually become a member of the NPA (National Pawnbrokers Association). If they do then they must follow the strict guidelines and regulations that they have in place.
Even though the National Pawnbrokers Association was founded in 1892 and then incorporated in 1931. It was not until 1989 until the constitution was rewritten. Read on to find out the reasons why.
1. It allowed the National Pawnbrokers Association to take into account the expansion of the pawnbroking industry, which had taken place over the last few years.
2. It gave the National Pawnbrokers Association more time to efficiently regulate its current members to a better standard.
3. Better protection for the public was need, hence why the constitution was rewrote.
Below we take a look at some of the reasons why more and more people are turning to pawnbrokers.
1. It is so much easier to use a prawnbroker rather than a bank, by using pawnbrokers you could end up having the money you need straight away.
2. The days of backstreet lending by a pawnbroker is now over. Most lenders are now very friendly and professional. They tend to be commercial outlets, like any other finance service.
3. Registered members of the National Pawnbrokers Association can take full advantage of a cheque clearing service.
4. Before any money or items can be exchanged, the customer has to sign a Pre Contact Information document, this protects the customer as well as the pawnbroker.
5. Normally the agreement that one signs, will last for a period of no less than six months. They can then retrieve their property back at any time as long as they repay the original loan plus any interest. As soon as the customer has repaid these monies, then their goods will immediately be returned to them by the pawnbroker.
6. However, one needs to be aware that if the sum borrowed is over 75 and the loan plus interest is not repaid in the time agreed, then they will receive notice from the pawnbroker informing that in 14 days time the goods will be sold. But at this time the pawnbroker may also provide the customer with an option to further renew the loan through them, paying off the interest that they currently owe. If they choose to do this then a new agreement will be written up which they will be then required to sign.
7. All those who choose to run a pawnbrokers will need to meet certain criteria before they are able to setup. They must have the relevant consumer credit licence, they must have the right type of security and insurance in place. The pawnbroker must have the right sort of premises from which their business can be run from, have funding in place and must be capable of valuing the goods that people bring. Plus they must learn every about the procedures involved in this industry, this means that they must know and understand every aspect of the Consumer Credit Act 1974 including a number of regulations that have been written up as amendments to it.
As you have read above, pawnbroking is not like it used to be. There are now a lot more rules and regulation brokers have to abide by. Using pawnbrokers does not attract the stigma that it use to, as you now know more and more people use them. - 29866
In the UK every person who wishes to set up as a pawnbroker must actually become a member of the NPA (National Pawnbrokers Association). If they do then they must follow the strict guidelines and regulations that they have in place.
Even though the National Pawnbrokers Association was founded in 1892 and then incorporated in 1931. It was not until 1989 until the constitution was rewritten. Read on to find out the reasons why.
1. It allowed the National Pawnbrokers Association to take into account the expansion of the pawnbroking industry, which had taken place over the last few years.
2. It gave the National Pawnbrokers Association more time to efficiently regulate its current members to a better standard.
3. Better protection for the public was need, hence why the constitution was rewrote.
Below we take a look at some of the reasons why more and more people are turning to pawnbrokers.
1. It is so much easier to use a prawnbroker rather than a bank, by using pawnbrokers you could end up having the money you need straight away.
2. The days of backstreet lending by a pawnbroker is now over. Most lenders are now very friendly and professional. They tend to be commercial outlets, like any other finance service.
3. Registered members of the National Pawnbrokers Association can take full advantage of a cheque clearing service.
4. Before any money or items can be exchanged, the customer has to sign a Pre Contact Information document, this protects the customer as well as the pawnbroker.
5. Normally the agreement that one signs, will last for a period of no less than six months. They can then retrieve their property back at any time as long as they repay the original loan plus any interest. As soon as the customer has repaid these monies, then their goods will immediately be returned to them by the pawnbroker.
6. However, one needs to be aware that if the sum borrowed is over 75 and the loan plus interest is not repaid in the time agreed, then they will receive notice from the pawnbroker informing that in 14 days time the goods will be sold. But at this time the pawnbroker may also provide the customer with an option to further renew the loan through them, paying off the interest that they currently owe. If they choose to do this then a new agreement will be written up which they will be then required to sign.
7. All those who choose to run a pawnbrokers will need to meet certain criteria before they are able to setup. They must have the relevant consumer credit licence, they must have the right type of security and insurance in place. The pawnbroker must have the right sort of premises from which their business can be run from, have funding in place and must be capable of valuing the goods that people bring. Plus they must learn every about the procedures involved in this industry, this means that they must know and understand every aspect of the Consumer Credit Act 1974 including a number of regulations that have been written up as amendments to it.
As you have read above, pawnbroking is not like it used to be. There are now a lot more rules and regulation brokers have to abide by. Using pawnbrokers does not attract the stigma that it use to, as you now know more and more people use them. - 29866
About the Author:
Unclesmoney are a pawnbroking business that loans against many valuable items including jewellery and gold.
