The word pawnbroker brings up images of hard faced, Dickensian London men who exploited the poor for whatever they could. In these modern times however, when it comes to it, do pawnbrokers exploit the poor?
It is not at all difficult to get a loan from a pawnbroker, providing you have suitable collateral as security. In times like these, we are all strapped for cash and whether you want to find decent items are good prices, or whether you need to make a quick penny or two, a pawnbroker can prove to be a very useful business. The best part is, there is next to no waiting.
The bad part is, pawnbrokers do tend to charge higher interest rates than banks do. This manner of loan should only ever be considered a short-term arrangement in instance where money has been delayed or when money is coming in soon otherwise you may be facing hefty interest charges.
The National Pawnbrokers Association (the NPA) is an association that abides by strict rules and guidelines and will not exploit. As a company that is over 100 years old, not only do they safeguard the interests of over 900 members, but they take into consideration the interests of their customers, too.
Those who do become members of the NPA are provided with an operations manual along with a code of conduct manual to which they must adhere at all times. Plus, as pawnbroking is in fact part of the credit industry just like other financial institutes, banks and lenders adhere to the regulations set out in the Consumer Credit Act of 1974.
Failing to attain a licence to open and run a pawnbroking business may result in a fine or at worst, a prison sentence. Licences can be obtained from the Office of Fair Trading (OFT).
Pawnbrokers that do not exploit their customers have a responsibility to act in a way that adheres to guidelines and legislation. The arrangement of loans is subject to regulations and all necessary information must be passed onto the customer before a loan can be approved.
The pawnbroker Uncles Money offers loans against almost all valuable items.
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