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| The Truth about Pawnbrokers |
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| Written by Richard Perkins |
| Friday, 30 October 2009 09:50 |
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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. 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. 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. 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. Long ago is the image of walking into a back room to ask to borrow the money. Many pawnbrokers now have shops that are on the main high street which are well lit and offer the friendly personal service you would expect from a more traditional money lender (bank). 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 14 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. 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. Above we have looked at some of the things in relation to what everybody should know about pawnbroking. As you can see from above, the chances of the pawnbroker being unscrupulous are gone and the chances of you not being able to repay the loan provided are reduced. But before you do use the services of such companies make sure you do some research beforehand, especially in relation to whether they are a member of the National Pawnbrokers Association or not. By visiting the National Pawnbrokers Associations website you can quickly determine whether the pawnbroker you are considering is a reputable one. About the Author: Unclesmoney are a pawnbroking company that loans against many valuable items including jewellery and gold. Get a totally unique version of this article from our article submission service Kindly provided by LJ-Marketing.dk You are welcome to use this article on your own website, if you include the link just before this text. |
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