PAWNBROKING
The
following rules do not apply to unregulated agreements, nor to non‑commercial agreements or
the pledge of a bearer-bond.
Pawnbroking
definitions:
|
Pawnee |
= |
the
person who provides the credit (and who receives the pledge) |
|
Pawnor |
= |
the
person who borrows the money (and who gives the pledge) |
|
Pledge |
= |
the
pawnee's rights over an article taken in pawn |
|
Pawn |
= |
an
article subject to a pledge |
A
Pawn-Receipt
(in prescribed form) must be given for any article received in pawn (s.114).
Generally, a pawn-receipt will be combined with the credit agreement.
Redemption
period
A
pawn can be redeemed at any time during the six months (or agreed longer period)
following the date of the agreement. After that, it continues to be redeemable
until the pawn is realised
by the pawnee, or until title passes
(see below).
Failure
to redeem within the loan period
A
pawn pledged for not more than £75 and for a period of 6 months belongs
to the pawnee; otherwise it becomes realisable,
ie. it can be sold. If the pawn is pledged for more than £100, 14 days notice
must be given to the pawnor. The sale price, less the costs of the sale, can
then be offset against the debt.
Loss
of pawn-receipt
The
pawn receipt can be replaced by either:
-
a statutory declaration signed under oath before a notary public, or
-
a signed statement (for amounts of no more than £75, where the pawnee agrees).
Offences
Offences exist for
-
taking a pawn from a minor (s.114),
-
failing to comply with the documentation rules (s.115), and
-
unreasonable refusal of redemption (s.119).
Note that criminal penalties apply to pawnbrokers breaching the provisions; (for other agreements, the sanctions are mostly civil).
This page was last updated on 16/01/07