The Truth about Pawnbrokers

By Richard Perkins

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'92 and then incorporated in'31. It was not until'89 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. 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.

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. 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. 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. A-- day notice period will be given to the customer if the loan has not been repaid. If the customer needs more time, then another contract will be written up.

7. Setting up a pawnbrokers is not as straight forward as some people might think. There are many rules and regulations that the broker has to abide by. Premises and a customer credit licence are just a couple of things to look into. All pawnbrokers must follow the Consumer Credit Act'74.

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.

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