Think of a pawnbroker and you may drift into fantasies of dark London times, Dickensian back alleys infested with rats and unseemly characters lurking around every corner. It may seem a very Victorian image, but to what extent do pawnbrokers exploit the poor even now?
Whatever the government tries to tell us, we are in the middle of a recession that does not seem likely to end any time soon. We are required to scrimp and save and there are times when we just do not have enough money. This is the wonderful thing about getting a loan from a pawnbroker. There is no waiting. So, providing you have suitable collateral against the money you would like to borrow, they will be happy to offer you a loan.
Unfortunately, although getting a loan from pawnbrokers is relatively easy , they also charge a much higher loan interest than a bank is likely to, therefore it should only ever be considered short-term when you are almost certain you will have the money sooner rather than later.
In the U.K., when it comes to finding a pawnbroker that you can rely on and one that will not exploit you, choose one that is a member of the NPA (National Pawnbrokers Association). This association has been in existence for more than 100 years. They are not only there to safeguard the interests of their members (of which there are currently more than 900) but also that of their customers.
Members of the NPA must adhere to the code of conduct provided in their operations manual. Similarly to other financial institutes, pawnbroking is a facet of the credit industry. Banks and lenders are also subject to the regulations set out in the Consumer Credit Act of 1974.
If there is a failure to obtain a licence from the Office of Fair Trading (OFT) to open a pawnbroking business, the individual is committing a criminal offence and may face a fine, or may even be imprisoned.
Just as with other forms of providing credit or lending money, this Act requires that the arrangements for such loans should be set out in a certain way. Also, before the loan is approved and after it has been approved then certain information must be provided to us. All these legislations and regulations help to ensure that pawnbrokers are not out to exploit us.
Pawnbroking business Uncles Money can offer loans against gold and jewellery. Grab a totally unique version of this article from the Uber Article Directory