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.
If you are thinking about becoming a pawnbroker in the UK, then you must look into becoming a member of the NPA (National Pawnbrokers Association).
Although the National Pawnbrokers Association was originally founded back in 1892 and then incorporated in 1931, the constitution that was written when first founded did not actually get rewritten until 1989. The main reason for reviewing and then rewriting the constitution was because of the following:
1. Pawnbroking was expanding so the National Pawnbrokers Association had to take this into account.
2. Existing members needed to be regulated, so this gave the National Pawnbrokers Association more time to do so.
3. They rewrote the constitution to ensure that the interests of the public were better protected which compared differently from the way other parts of the financial services sector was still self regulated.
So what are the reasons why more and more people are turning to using pawnbrokers? Below we take a look at some of the reasons.
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. 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.National Pawnbrokers Association now offers a cash service company, that allows members to clear cheques through a third party 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. 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. Before anyone can set up a pawnbroking service, they must have a relevant credit licence and a certain type of security and insurance. Premises are again very important. All potential pawnbrokers must abide by the Consumer Credit Act 1974.
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.
If you are thinking about becoming a pawnbroker in the UK, then you must look into becoming a member of the NPA (National Pawnbrokers Association).
Although the National Pawnbrokers Association was originally founded back in 1892 and then incorporated in 1931, the constitution that was written when first founded did not actually get rewritten until 1989. The main reason for reviewing and then rewriting the constitution was because of the following:
1. Pawnbroking was expanding so the National Pawnbrokers Association had to take this into account.
2. Existing members needed to be regulated, so this gave the National Pawnbrokers Association more time to do so.
3. They rewrote the constitution to ensure that the interests of the public were better protected which compared differently from the way other parts of the financial services sector was still self regulated.
So what are the reasons why more and more people are turning to using pawnbrokers? Below we take a look at some of the reasons.
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. 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.National Pawnbrokers Association now offers a cash service company, that allows members to clear cheques through a third party 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. 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. Before anyone can set up a pawnbroking service, they must have a relevant credit licence and a certain type of security and insurance. Premises are again very important. All potential pawnbrokers must abide by the Consumer Credit Act 1974.
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.
About the Author:
Uncles pawnbrokers are a Birmingham based pawnbroking service that loan against platinum, gold and other valuable. You are welcome to reprint this article - but get your own unique content version here.
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