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A few years ago, things were pretty bad, and I found myself having to use a second hand 'pawn shop', I heard advertised on the radio, in order to access some desperately needed cash to feed my family (wife and 5 children).
the shop does NOT mention the FCA, or the Consumer Credit Act, on any of its paperwork, they are not a member of the National Pawnbrokers association, and I'm wondering if its operating illegally..
I pawned my wife's wedding and engagement rings, some electrical equipment including a PC that I was used for work previously.
Unfortunately the goods have been out of affordable reach to me ever since, the pawn shop offers me the option of extending the agreement at £30 per £100 borrowed every four weeks.
They were fairly understanding to start with, and sometimes agreed to me visiting a day or two late, if the date didn’t fit with my payday. Although, without notice, they decided to start charging me ‘double’ renewal fees, no warning, meaning, if I was a couple of days late, I would have to pay £60.00 per £100 borrowed instead of the usual £30.
This meant that I’d struggle for the month, and after being turned down by banks, payday loans etc, I often found myself taking in more stuff to get by. I had entered a trap, caught by the attachment of personal items, not wanting to walk away with effectively paying a company to take them..
But, is the way they operate legal?
The reason I am on this forum today, is due to the fact,I was paid late, and despite phoning the company, and confirming when I was going to visit the shop, plus confirming that I would be able to renew the goods, they have now tell me, today, the goods are theirs, and that I am going to have to pay 95% interest this month, plus buy back the goods, Happy christmas, the bill is currently over £1500.00
The paper work is exactly the same, regardless of pawning or renewing the agreement, despite it being a continuation.
For those of you not familiar with the pawn business, they 'buy' your goods, for about 10% of the real value, and offer you the option to 'buy back' your items normally within 4 weeks of the original agreement date, they effectively offer loans secured against items they hold of yours.
The paperwork I was made me sign, states the following
Shop Name,
Agreement Date,
List of Items…
terms:
1. I agree to sell the goods listed above for £ x.xx
2. Once paid the above amount, ownership of the goods passes to 'the company' and I have no rights over these goods.
3. The above goods are my property and I have no outstanding finance on them
4. The goods are in full and working order
5. I am over 18.
6. I confirm that I have received the sum of £ x.xx in full settlement for the outstanding goods.
7. all the above statements are true and I understand that ‘The Company’ have only received the goods on the based on this information.
There is an additional section to ‘Buy Back’ your items:
At Anytime upto xx/xx/xxx (Date) ‘The Company’ grants to the Customer the right to buy back the goods on this agreement for £ x.xx (including 30%)
SUBJECT TO THE FOLLOWING CONDITIONS:
My wife will kill me if she looses her rings, which originally cost us several thousand pounds. And we have about £5k of other stuff in there too. Way exceeding the £1500 charge, which we do not have
These are loans? What are the rules? This cant be legal surely? Ideally I want to sui this company for the full value paid? How can I do this? What are my rights?
the shop does NOT mention the FCA, or the Consumer Credit Act, on any of its paperwork, they are not a member of the National Pawnbrokers association, and I'm wondering if its operating illegally..
I pawned my wife's wedding and engagement rings, some electrical equipment including a PC that I was used for work previously.
Unfortunately the goods have been out of affordable reach to me ever since, the pawn shop offers me the option of extending the agreement at £30 per £100 borrowed every four weeks.
They were fairly understanding to start with, and sometimes agreed to me visiting a day or two late, if the date didn’t fit with my payday. Although, without notice, they decided to start charging me ‘double’ renewal fees, no warning, meaning, if I was a couple of days late, I would have to pay £60.00 per £100 borrowed instead of the usual £30.
This meant that I’d struggle for the month, and after being turned down by banks, payday loans etc, I often found myself taking in more stuff to get by. I had entered a trap, caught by the attachment of personal items, not wanting to walk away with effectively paying a company to take them..
But, is the way they operate legal?
The reason I am on this forum today, is due to the fact,I was paid late, and despite phoning the company, and confirming when I was going to visit the shop, plus confirming that I would be able to renew the goods, they have now tell me, today, the goods are theirs, and that I am going to have to pay 95% interest this month, plus buy back the goods, Happy christmas, the bill is currently over £1500.00
The paper work is exactly the same, regardless of pawning or renewing the agreement, despite it being a continuation.
For those of you not familiar with the pawn business, they 'buy' your goods, for about 10% of the real value, and offer you the option to 'buy back' your items normally within 4 weeks of the original agreement date, they effectively offer loans secured against items they hold of yours.
The paperwork I was made me sign, states the following
Shop Name,
Agreement Date,
List of Items…
terms:
1. I agree to sell the goods listed above for £ x.xx
2. Once paid the above amount, ownership of the goods passes to 'the company' and I have no rights over these goods.
3. The above goods are my property and I have no outstanding finance on them
4. The goods are in full and working order
5. I am over 18.
6. I confirm that I have received the sum of £ x.xx in full settlement for the outstanding goods.
7. all the above statements are true and I understand that ‘The Company’ have only received the goods on the based on this information.
There is an additional section to ‘Buy Back’ your items:
At Anytime upto xx/xx/xxx (Date) ‘The Company’ grants to the Customer the right to buy back the goods on this agreement for £ x.xx (including 30%)
SUBJECT TO THE FOLLOWING CONDITIONS:
- The customer named above and soley that person on the production of this receipt may collect the goods.
- The right of option to cancel is exercised on or before the collection date shown above ‘The Company’ has no obligation to remind the customer that this period has come to an end.
- ‘The Company’ will not be obliged to return the goods back for reasons beyond their control, for example, in the event of fire, theft or damage or removal by police.
My wife will kill me if she looses her rings, which originally cost us several thousand pounds. And we have about £5k of other stuff in there too. Way exceeding the £1500 charge, which we do not have
These are loans? What are the rules? This cant be legal surely? Ideally I want to sui this company for the full value paid? How can I do this? What are my rights?
