Money | Debts | Financial Freedom

Exploitation of the poor and helpless. Phenomenal interest rates. Manipulative individuals out to take your cash. Is this the image of pawnbrokers you have?

Whatever the government tries to tell us, we are in the middle of a recession that does not seem likely to end any time soon. We are required to scrimp and save and there are times when we just do not have enough money. This is the wonderful thing about getting a loan from a pawnbroker. There is no waiting. So, providing you have suitable collateral against the money you would like to borrow, they will be happy to offer you a loan.

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.

In the U.K., when it comes to finding a pawnbroker that you can rely on and one that will not exploit you, choose one that is a member of the NPA (National Pawnbrokers Association). This association has been in existence for more than 100 years. They are not only there to safeguard the interests of their members (of which there are currently more than 900) but also that of their customers.

Members of the NPA must adhere to the code of conduct provided in their operations manual. Similarly to other financial institutes, pawnbroking is a facet of the credit industry. Banks and lenders are also subject to the regulations set out in the Consumer Credit Act of 1974.

In order for someone to run a pawnbroking business, they must obtain a license from the OFT (Office of Fair Trading) in the U.K. If they fail to get this then they are committing a criminal offence and as a result, this could lead them to either being fined or sent to prison.

These kinds of loans are subject to legislation like any other type of loan. Specific information must be traded between pawnbroker and customer before the loan can be approved, ensuring pawnbrokers cannot exploit their customers.

Pawnbroking business Uncles Money can offer loans against gold and jewellery.

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1. Everything you need to Know about Pawnbrokers
2. Pawnbroking Valuable Items
3. What You Should Know About Poor Credit Credit Cards
4. Solutions to Poor Credit
5. Poor Credit Student Loans
6. How I Got A Poor Credit Auto Loan, And How You Can Too
7. True Stories of Mortgage Company Abuse
8. What Might You See in a Pawnshop?

Tags: budgeting, Credit, Credit Counseling, Credit Info, debt managment, debt relief, ethics, Finance, Loans, Payday Loans, Personal Finance

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