PAWNBROKING EXPLAINED

17.01.10 / Uncategorized / Author: admin

Pawn broking is borrowing money for up to 6 months at a fixed rate of interest per-month, in return the borrower leaves with the pawnbroker

Goods to the value of the money borrowed, usually jewellery the goods must be kept by the Pawnbroker and no disposed of at any time during the 6 months,

The borrower can claim the goods back (REDEEM THEM) at any time during the 6 months on repayment of the loan amount plus the interest to date.

The rate of interest charged today varies typically around 5% this is a very a reasonable and secure way of borrowing. Anyone who may feel that it is embarrassing to pawn goods need have no worry as it is recorded

That Queen Isabella of Spain pawned her jewellery to fund Christopher Columbus to find the Americas.

We have a very wealthy customer who regularly borrows £100 AND DEPOSITS £100,000. OF JEWELLERY AS SECURITY she then pops off on a Cruise and redeems her goods 2 months later and pays £10 interest. IN THE INTERIM WE HAVE HER GOODS IN OUR SAFE DEPOSIT. It would cost her £150 for a bank safety deposit box!

Pawnbrokers premises can be recognized by the sign of 3 brass balls displayed outside, these are from the coat of arms of the Medici family, one of the very early pawnbrokers.

Identification will be required when pledging goods, you will receive a receipt (pawn ticket) this must be produced when redeeming the goods.

e.g. of a typical loan Borrow £100 at say 5% repay £105 any time during the first month, then a Further £5 will accrue each month till the end of the 6 month period, if the goods are not redeemed the pawnbroker must give written notice to the address on the pawn ticket of 14 further days to redeem the goods, or they will be disposed of to recover the loan and interest. The goods must be sold in a fair manner usually by auction.

We regret that we can only give advice on pawn broking personally at our

Phillips Jewellers and Pawnbrokers,

Units 1 and 2 Victoria Market,

Victoria Road West

Cleveleys Lancashire.

FY5 1BS