You will find this article factual and informative on the subject of pawnbroking. Since the start of pawnbroking, things have really changed. Read on to find out more.
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).
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. It allowed the National Pawnbrokers Association to make sure that the affairs of those who were members, to be much better and more efficiently regulated.
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. 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. Along with the traditional pawnbroking services, those who are members are able to take advantage of the National Pawnbrokers Associations cash service company. This provides their members with a third party cheque clearing facility.
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. Normally the agreement that one signs, will last for a period of no less than six months. They can then retrieve their property back at any time as long as they repay the original loan plus any interest. As soon as the customer has repaid these monies, then their goods will immediately be returned to them by the pawnbroker.
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. 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 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. - 31380
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).
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. It allowed the National Pawnbrokers Association to make sure that the affairs of those who were members, to be much better and more efficiently regulated.
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. 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. Along with the traditional pawnbroking services, those who are members are able to take advantage of the National Pawnbrokers Associations cash service company. This provides their members with a third party cheque clearing facility.
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. Normally the agreement that one signs, will last for a period of no less than six months. They can then retrieve their property back at any time as long as they repay the original loan plus any interest. As soon as the customer has repaid these monies, then their goods will immediately be returned to them by the pawnbroker.
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. 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 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. - 31380
About the Author:
Unclesmoney are a pawnbroking service that loans against many valuables including jewellery and gold.
