Do Pawnbrokers Exploit the Poor?

Think of a pawnbroker and you may drift into fantasies of dark London times, Dickensian back alleys infested with rats and unseemly characters lurking around every corner. It may seem a very Victorian image, but to what extent do pawnbrokers exploit the poor even now?

Certainly at a time where we are all trying to use every penny we have, going to a pawn shop may help us to get a little more money when needed. The great thing about using a pawn shop compared to a bank is that you never need to wait for your request for a loan to be agreed. Instead, as long as you can provide suitable collateral as security for the money you borrow, they will be willing to lend to you.

However, you need to remember that, when it comes to using a pawn shop, the amount of interest they charge on these loans is much higher than a bank would charge. So really, this type of financing should only be used for a short period of time, for example, if you find yourself without some money until your next pay cheque arrives.

Any pawnbroker that is a member of the NPA (The National Pawnbrokers Association) must adhere to the regulations set out in the manual. Over 100 years old, the NPA is responsible for safeguarding the interests of over 900 members, as well as the interests of their customers.

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).

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 will take rings, necklace, bracelets and other jewellery as loan collateral.

Most Valuable Items That Can Be Pawnbroked

In the current financial climate the use of the services of pawnbrokers has been increasing. This is because they can provide people with a simple and quick way to obtain funds for emergencies. But what are the most valuable items to pawnbroke these days?

In this article we take a look at just some items that are the most popular that tend to be taken to a pawnbrokers these days. Plus we explain a bit about how each item that you are considering getting a loan on are appraised by the pawnbroker.

CDs, DVDs and Video Games-Every disc that you take into the pawn shop will be individually appraised by the broker who you are trying to get the loan from. In order to get the money you are after the items must be in excellent condition. So this means that they should not be scratched. Plus each one must come in its original case along with the original case artwork. Also they should have all the liner notes included and for video games the instruction manual as this could help to increase the price at which they value such items.

Jewellery-If you are intending to use items of jewellery to obtain a loan through pawnbrokers then making sure that it is of the highest quality possible. Certainly when it comes to items that contain diamonds or other precious stones the value will be a lot greater. For the simple reason is that should you not be able to repay your loan the pawnbroker will find it easier to sell.

Electronic Items – It does not matter whether you are taking a TV or an electric drill to pawnbrokers to use as security the items will need to be in good working order. If you can it is best that the electronic items you take to a pawnbrokers are the kinds that are no more than 2 years old.

Above we have taken a quick look at what some of us consider are the most valuable items to pawnbroke nowadays. But as you will soon discover there are numerous other items that these types of businesses will consider. So don’t be afraid to do some research before you do visit a pawnbroker locally or online.

Unclesmoneymoney is one of the first online Pawnbrokers to launch online. first started as a brick and mortar company Unclesmoney has now expanding to offering some of the best loans online.