Pawnbroker
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A dealer in pledges, licensed to carry on a moneylending business on the security of goods taken into pawn. The loans are governed by the Pawnbrokers Acts 1872 and 1960, now replaced by the Consumer Credit Act 1974, provided the money involved is less than £50. If the amount is over £50, the Acts do not apply and common law rules prevail. For loans over £5 a special pawn ticket must be given and signed, and a duplicate signed by the pledger. Interest on loans below £5 is limited. The goods pledged are redeemable within six months, with seven days’ grace. After this, the pawnbroker may then dispose of the goods at a public auction. Until he does so the goods are still redeemable. In the case of pledges for more than £2 the pawnbroker must retain any money the goods make (beyond what he is owed) for three years and hand it over. Pledges of less than £2 he can take absolutely at the end of the six months and seven days. Tickets must always be issued – if lost they may be renewed by a magistrate (the old ticket then becomes void). The pawnbroker must not deliver the goods to any person other than the one with the ticket. When the pawnbroker sells, goods pawned, he may on no account buy them himself.
Reference: The Penguin Business Dictionary , 3rd edt.
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