The Significant differences between the pawnbroking industry in the US and the UK

They have been of recent so many discussions on the differences faced by the pawnbrokers industries in both the United States and the United Kingdom, so hence, we will be discussing these differences faced by the industry in these two totally different locations. but before then, we like to expatiate on the meaning of the term ‘Pawnbroker’.

A pawnbrokers (also called or referred to as a pawnshop) is a shop or business who basically renders loans (money) to people who bring in valuable items which they leave with the pawnbroker as collaterals, a pawnbrokers clients may decide to render collaterals like jewelries, gold, cameras, musical instruments, televisions and/or computers, although it all depends on the amount of loan they intend to get from the pawnbroker. Therefore, pawnbroking is the act where pawnbrokers exchange or lend out money to their clients and in turn the clients tender collaterals that will be left with the pawnbrokers and when the loans are not paid or returned with interest can be sold out to other willing clients and all of these will be under the pawnbrokers terms and conditions.

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The pawnbroker in the United States is, generally itinerant, subject to considerable legal restriction, but violations of the laws and regulations are more frequent. Each state has its own rules that needed to be followed by pawnbrokers, but pawnbrokers based in New York and Massachusetts may be taken as fairly representative. Pawnbrokers usually attain their licenses from the mayors of the location they intend to pawn, or in most cases, by the mayors and aldermen, but in Boston, the police commissioners are the licensing authority. In the state of New York permits are renewable on annual basis with payment of £500, and the pawnbroker will be required to file a surety bond with the Department of Consumer Affairs, in the sum of £10,000.

While The pawnbroking industry or shops based in United Kingdom, before establishment are usually required to write and submit an application to the financial authority which after that will be approved and then use a standard pawnbroking agreement, a pawnbroker must conduct business from trade premises that are licensed and the trading name chosen must agree with the name under which it is licensed to trade.

But all the same, the pawnbroking shops in these two countries all operate in the same, hence, they exchange or loan out money to its clients in exchange for valuables under a stipulated time frame that the loan should be returned and with interest in most cases otherwise, the collaterals collected from the clients by the pawnbrokers will be sold-out.

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