When it comes to pawnbrokers, the image that they once had has been dramatically changed. No longer are these the type of men that people would go to if they had no other avenues open to them during a financial problem. The main reason for the change in the way we perceive pawnbrokers is down to them now being regulated. Below we provide information about what everybody ought to know about pawnbroking.
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.
The National Pawnbrokers Association was first found in 1892, and then incorporated in 1931. It was not until 1989 until the constitution was rewritten, below we have listed some of the reasons.
1. As pawnbroking was expanding the National Pawnbrokers Association had to keep an eye on who was running a legitimate business and who was not.
2. Existing members needed to be regulated, so this gave the National Pawnbrokers Association more time to do so.
3. Better protection for the public was need, hence why the constitution was rewrote.
More and more people have started to turn to pawnbrokers. We take a look at some of the reasons why.
1. One reason why people turn to pawnbrokers is due to how easy it is to obtain money. Within a few hours of finding a local branch you could pawn an item and have the money straight up.
2. Pawnbrokers are not how they used to be. The days where it was all hush hush have now vanished, and now most lenders are very open about their service, just like any other business.
3.National Pawnbrokers Association now offers a cash service company, that allows members to clear cheques through a third party service.
4. Any sum that a customer takes out will be agreed in advance and before the transaction takes place they will be presented with a Pre Contract Information document. This contract is between them and the pawnbroker, this allows them a chance to review what is on offer before actually signing the actual agreement. As one reads through this document one will see that it is not only the terms and conditions of the loan but also clearly shows what ones rights are and how they will be protected under the Consumer Credit Act of 1974.
5. Most contracts state that the customer has up to six months to retrieve their goods. As soon as the loan has been paid back, then the customer will be refunded in full.
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.
Mentioned above a some of the key points around the pawnbroking industry. Pawnbroking has changed dramatically over the years, it is now a friendly and professional industry thanks to the National Pawnbrokers Association and other regulations. Pawnbroking is just as good as many other loan lending industries. Just make sure you get the best rate! - 30719
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.
The National Pawnbrokers Association was first found in 1892, and then incorporated in 1931. It was not until 1989 until the constitution was rewritten, below we have listed some of the reasons.
1. As pawnbroking was expanding the National Pawnbrokers Association had to keep an eye on who was running a legitimate business and who was not.
2. Existing members needed to be regulated, so this gave the National Pawnbrokers Association more time to do so.
3. Better protection for the public was need, hence why the constitution was rewrote.
More and more people have started to turn to pawnbrokers. We take a look at some of the reasons why.
1. One reason why people turn to pawnbrokers is due to how easy it is to obtain money. Within a few hours of finding a local branch you could pawn an item and have the money straight up.
2. Pawnbrokers are not how they used to be. The days where it was all hush hush have now vanished, and now most lenders are very open about their service, just like any other business.
3.National Pawnbrokers Association now offers a cash service company, that allows members to clear cheques through a third party service.
4. Any sum that a customer takes out will be agreed in advance and before the transaction takes place they will be presented with a Pre Contract Information document. This contract is between them and the pawnbroker, this allows them a chance to review what is on offer before actually signing the actual agreement. As one reads through this document one will see that it is not only the terms and conditions of the loan but also clearly shows what ones rights are and how they will be protected under the Consumer Credit Act of 1974.
5. Most contracts state that the customer has up to six months to retrieve their goods. As soon as the loan has been paid back, then the customer will be refunded in full.
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.
Mentioned above a some of the key points around the pawnbroking industry. Pawnbroking has changed dramatically over the years, it is now a friendly and professional industry thanks to the National Pawnbrokers Association and other regulations. Pawnbroking is just as good as many other loan lending industries. Just make sure you get the best rate! - 30719
About the Author:
Uncles pawnbrokers are a Birmingham based pawnbroking service that loan against jewellery, gold and other valuables.
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