The Similarities And Differences Between Pawnbrokers

Posted by Nabin Shaw on October 17th, 2018

The pawnbroking business has been around for centuries. People have been using pawnbrokers around the world. They hand over their goods to pawnbrokers in exchange for cash when they are short of money. You can find a pawnbroker virtually in every city across Australia, America, Canada, Mexico, the Philippines, New Zealand, South Africa and all over Europe. All these pawnbrokers from various countries have some things in common.

Similarities Between Pawnbrokers

Similarities could include redemption rates, the types of goods that can be pawned, licensing requirements, working hours and so much more. For instance, the average redemption rate ranges between 80 and 90 percent. The average redemption rate in countries like Australia is closer to 85 percent. Most pawnbrokers Melbourne are open from Monday to Friday, some opentheir shops even on Saturdays. This is true for most of the big cities across the world. There are some stores that are even open for 24 hours.

In countries like New Zealand, The Philippines and Sweden pawn brokers are required to be licensed and to abide by some kind of government regulation or some legislative act. In Australia most Pawnbrokers are guided by The Second-hand Dealers and Pawnbrokers Act  of 1996. This act does not require pawnbrokers to obtain a license, but they have to notify the police of their business.  There are certain restrictions that are put on pawnbrokers. For example, pawnbrokers are required to keep records of all transactions. Pawnbrokers must also keep the pawned goods for at least 30 days and can dispose of them in three days by reselling them or auctioning them. The details of the purchaser have to be recorded. If dealers are found with stolen goods in their property they may be prosecuted for theft. If the goods are auctioned or sold off. The owner of the pawned goods can inspect the record of sale and if the amount they sold for is more that the amount that the owner owes the pawnbroker, the pawnbroker has to pay the balance to the original owner of the goods. Questionable transactions are subject to the Consumer Credit Code.

The items that are commonly pawned include gold jewellery, electronics, audio visual equipment, watches and power tools. Some pawn brokers accept collectible items like gold coins, rare stamp collections and a whole lot more.

All pawn shops operate by taking goods that are in good condition, appraise their value and give a cash loan against these items. So, in essence, the pawned items serve as collateral on the cash that is loanedby the pawnbroker. These items are held by the broker and are only returned when the loaned amount is repaid. If a customer fails to pay the money back within the specified retention period, the pawnbroker can sell the goods to recoup the money.

Pawnbrokers Melbourne and those in other countries like the U.S have to take extra security precautions as pawnshops are often seen as easy targets by thieves. Pawnshops hold a lot of valuable goods like gold jewellery, watches and more. Pawnbrokers often have to carry the liability of having these valuable items stored in their premises. They may add electronic security systems, 24 hour surveillance and alarms. They may even go as far as installing shatterproof glass walls between the staff and customers to increase security and protection. However, reputable pawnbrokers will have insurance so that you they are covered in the event of a theft, fire and other disasters that might lead to the loss of goods in the shop.

Differences Between Pawnbrokers

As much as the similarities between pawnbrokers might be the same in various countries, there are also some common differences.

The average pawn loan in the U.S is 0, in Australia it ranges between 0 and 4. In New Zealand, the average pawn loan is 0 whilst in the Philippines it ranges between 0 and 0 whilst in Sweden, the average is 0.

Another difference is that some countries have no cap on the interest they can charge. The standard rate is 3 to 3.5 percent per month in Australia. In Sweden and the Philippines, there is no exact cap on the interest.

In some countries like New Zealand, most pawnbrokers own one store. In other countries like Australia, most owners have more than one store. There are even a couple of franchised stores strewn across various cities.

No matter the differences or where in the world the pawnbrokers might be, pawnshops offer a much needed service for when you are short on cash