Below we have listed a number of facts that you should know about pawnbrokers. So much has changed over the years regarding pawnbroking. The likes of professionals and new regulations have made this industry very acceptable.
The rules and regulations state that anyone in the UK that wishes to start a pawnbroking business must become a member of the NPA (National Pawnbrokers Association).
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. It allowed the National Pawnbrokers Association to take into account the expansion of the pawnbroking industry, which had taken place over the last few years.
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.
So what are the reasons why more and more people are turning to using pawnbrokers? Below we take a look at some of the reasons.
1. People are turning to pawnbrokers simply because they find it much easier to obtain a small sum of cash for a short period of time, rather than going to a bank or building society. In many cases the person looking for the cash is able to do so within a few minutes or hours of seeking out the services of a pawnbroker close to where they live.
2. The days of backstreet lending by a pawnbroker is now over. Most lenders are now very friendly and professional. They tend to be commercial outlets, like any other finance service.
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. The customer has up to six months to collect their goods, when the loan is fully paid the goods will be returned.
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.
Mentioned above a some of the key points around the pawnbroking industry. Pawnbroking has changed dramatically over the years, it is now a friendly and professional industry thanks to the National Pawnbrokers Association and other regulations. Pawnbroking is just as good as many other loan lending industries. Just make sure you get the best rate! - 30462
The rules and regulations state that anyone in the UK that wishes to start a pawnbroking business must become a member of the NPA (National Pawnbrokers Association).
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. It allowed the National Pawnbrokers Association to take into account the expansion of the pawnbroking industry, which had taken place over the last few years.
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.
So what are the reasons why more and more people are turning to using pawnbrokers? Below we take a look at some of the reasons.
1. People are turning to pawnbrokers simply because they find it much easier to obtain a small sum of cash for a short period of time, rather than going to a bank or building society. In many cases the person looking for the cash is able to do so within a few minutes or hours of seeking out the services of a pawnbroker close to where they live.
2. The days of backstreet lending by a pawnbroker is now over. Most lenders are now very friendly and professional. They tend to be commercial outlets, like any other finance service.
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. The customer has up to six months to collect their goods, when the loan is fully paid the goods will be returned.
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.
Mentioned above a some of the key points around the pawnbroking industry. Pawnbroking has changed dramatically over the years, it is now a friendly and professional industry thanks to the National Pawnbrokers Association and other regulations. Pawnbroking is just as good as many other loan lending industries. Just make sure you get the best rate! - 30462
About the Author:
Unclesmoney are a pawnbroking business that loans against many valuables including jewellery and gold.
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