How to deceive pawn shops and not pay? How they can answer: how interest is calculated per day

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• Unpurchased pledges - what does the pawnshop do with them?

Let's imagine this situation: a pawnshop client contacted the organization to pledge valuable property, receiving a cash loan for it. But due to not particularly favorable conditions, the person was unable to return the money within the specified period and did not pay the entire interest rate under the agreement. Situations are different, life turns and turns, so anything can happen.

But what do borrowers do with this unredeemed property? Does the pawnshop sell unredeemed collateral?

What does the law say?

As a rule, the laws of any country have their own documents that describe where, where and how the sale of unredeemed pledges in a pawnshop should be made.

Thus, the Russian Federation must hold special auctions, and they must be public. And in Ukraine, if bargaining occurs, then only to the state or the Bank of the country. But all pawnshops are faced with the question: “What is the most profitable way to sell a pledge whose payment period has expired by its previous owner?”

Before you begin to understand what a pawnshop does with unredeemed property, you need to understand what the initial cost of the product is, since selling it at the same price that it was accepted is unprofitable for the organization.

Automatic extension of the loan term

Pawnshops have a convenient system for automatically extending loans. The principle works like this: you are not ready to repay the entire loan amount at once, but you have the opportunity to repay the interest accumulated over the month. After payment, you will be offered an automatic extension of the loan for a similar period. Prolongation can be repeated several times in a row, throughout the whole year.

Before you apply for a loan, check with your chosen pawnshop to find out how they handle automatic extension of the term. If the conditions suit you, agree to place gold jewelry as collateral. Otherwise, cancel the operation and find another pawnshop for this.

Example of unredeemed collateral

Let’s say a pawnshop client pledged a valuable item and received 2,500 rubles for it. The contract specifies the time frame within which the borrower must meet, and this is 25 days. From the entire loan, the pawnshop earns 250 rubles for itself. Further, let’s assume that the client cannot pay the pawnshop to buy back his product, and as a result, the person refuses to pay in the future.

Thus, so that the entire loan does not go to a loss to the pawnshop, he decides to sell this property for 2,500 rubles. Thus, the organization returns the loan back into its hands, as well as all the interest that was accrued, having previously paid tax to the state treasury.

As a rule, this is how many pawnshops profit from this; it is more profitable for them (and this is logical!) to earn money rather than distribute it left and right. After all, you still want to keep something for yourself. Also, a pawnshop may not sell the client’s property, storing it in its premises for up to two months. But here you need to keep in mind the fact that in this case a penalty will be charged, which the person will need to urgently pay if he nevertheless decides to return the item back into his own hands.

If the pledged property spends enough time in a pawnshop, but no one buys it, then such an item will be sold by the pawnshop much more difficult and longer, since there are large losses on the loan, large penalties and interest imposed.

What does it mean to re-pledge gold in a pawnshop in numbers?

The easiest way to understand exactly all the tasks and capabilities of the option to re-pledge property in a pawnshop is with specific numbers and examples.

Let’s say you are faced with a situation where, for example, a specialist values ​​your jewelry ring at 30,000 rubles. But right now you need no more than 10,000 rubles, and certainly not the entire amount mentioned.

Then you can:

1. Conclude an agreement in such a way as to receive 10,000 rubles in your hands immediately, and after some time (for example, next week or a month) to receive the remaining 20,000 rubles in cash if necessary.
2. Conduct the transaction in such a way as to receive, for example, 10,000 rubles immediately, and not receive the remaining 20,000 rubles received during the appraisal at all, thereby further reducing the amount of payment to return the ring to your property as quickly as possible. In this case, the percentage of payments for each day when the property is pledged is lower.

Thus, each pawnshop client receives a certain variability in actions when mortgaging their own property. In both cases, on a certain date it will be necessary to draw up a new agreement to re-mortgage the property and change the amount of payments.

It turns out that the function of how to re-pawn gold at a pawnshop can be especially attractive for very expensive jewelry or large bars of precious metals. In some cases, in practice, it is used to pledge cars, especially valuable antiques or real estate.

Using the opportunity to re-pawn gold at a pawnshop, you can remain much more confident that the pledged property will be returned back, and not completely parted with it.

How is the sale of unredeemed collateral carried out?

Firstly, competition in the pawnshop market is quite high; people buy from those where it is more profitable and cheaper to purchase property. Therefore, every organization must have its own clever tricks that their customers will fall for. For example, if you are a representative of a pawnshop, then the sale of unredeemed pledges includes:

• A guarantee that gold products are absolutely NOT fake (and in general, it is advisable to be as honest as possible with your clients, since many pawnshops deceive people by passing off property as gold!). Your merchandise experts must be professionals in their field, carefully evaluating and checking each product down to the smallest detail.
• Each pawnshop should have its own discounts and promotions so that people begin to think: “in this place you can buy an item cheaper than across the street!” For example, every tenth visitor gets a 10% discount, elderly people get a 15% discount, and the sale of property worth 50,000 rubles includes a 7% discount. Think about how else you can attract and interest the client so that the once unredeemed item finds its new owner.
• Offer your customers the opportunity to purchase a product not only face to face, but also via the Internet - nowadays this is very convenient. Note that it is becoming much easier for people to sit at home and make purchases while lying on the couch, rather than get up and go to the other end of the city for property that is not yet guaranteed to be purchased.

Who buys gold from pawn shops?

Sales to private individuals

: Separate display case with unredeemed goods.

Own auction.

Large organizations organize open auctions online to sell jewelry, coins, orders, medals, and tokens. Buyers are jewelry companies that need raw materials for production. They buy precious metal by the kilogram, saving on taxes. Private individuals cannot take part in the auction, since by law they cannot sell scrap jewelry.

Transactions are carried out by individual entrepreneurs and law firms

who are registered with the Assay Supervision Inspectorate and have opened the corresponding type of activity with the tax authorities.

Sale to jewelry workshops.

Pawnshops have workshops where unsold items are handed over. Jewelers restore and melt down the items.

Sales to radio engineering industry enterprises.

Radio engineering factories use technical gold - a metal that has not been purified from impurities. It is used:

• in the production of microchips, mobile phones;
• in the production of medical products;
• for dentures;
• for the treatment of cancer.

Metal is purchased through special points and at auctions.

Sale to jewelry stores.

High-quality products are sold to stores. After evaluation, the product is sold at an inflated price. Stores accept products with an attractive appearance, without stones (in Russia there are not enough appraisers of precious stones).

We recommend that buyers carefully examine the product tag. Purchased jewelry is very old.

Unpurchased pledges in a pawnshop - what can you buy?

• Coins from different countries for numismatists.
• Phones, tablet devices, e-books, laptops, computers.
• Watches (pawnshops accept certain brands, i.e. not all watches).
• Photographic equipment, video equipment.
• Products made of gold and silver.

Of course, if a valuable item remains in the pawnshop, this does not mean that the price for it will be the same as in stores, or what the pawnshop assigned to its client who was overdue and did not meet the time frame. The price, naturally, will be a little higher, but the uniqueness of the property still prevails over the final amount.

If you miss a loan payment

Pawn shops have no monthly fees. That is, you can repay the loan in several payments throughout the entire term, thereby reducing the amount of interest, or in a lump sum - on the last day of the loan. At the same time, pawnshops do not provide:

• Fines for late payment;
• Hidden interest.

If you are behind on your loan payment and still want to return the gold from the pawnshop, then you have exactly one month to do so. By law, pawnshops provide a so-called grace period, during which the gold is still yours. During the grace month, you have the right to return gold from the pawnshop any day, subject to payment of the loan amount with interest. In this case, the pawnshop does not have the right to change the interest rate or loan size.

The nuances of working with unredeemed items

A pawnshop has its own nuances if the client has not purchased his property. So, there are certain costs, i.e. expenses incurred by the organization when selling unredeemed items. For example, this includes giving the product a marketable appearance so that it does not look old and shabby, that is, in the form in which the former owner handed it over, but it needs to look fresh, beautiful and new.

Or, for example, good advertising of property is typical here, so that a person wants to buy and acquire a product, being sure that he needs this particular thing more than anything else. Or, also, the final assessment of the item, its final price, agreement on the total amount and quality, appearance and design, style and price tag, so that the buying client is sure that the price is equal to the quality. Unredeemed pledges at a pawnshop will find use in any case. Things will not remain unnecessary.

In general, it is better to avoid such situations when the realization comes that it is not possible to buy back your valuable property. Plan your finances so that the pawned item is back in your hands, since it is not particularly pleasant to realize that your once favorite “trinket” now belongs to someone else. So always know that the pawnshop will sooner or later sell your item without blinking an eye, taking twice as much money for it as you received a loan for it. Be careful.

Advantages and disadvantages of the decision made

The decision to transfer gold temporarily or permanently to an appropriate organization has its advantages and disadvantages.

The advantages include:

1. Possibility of quickly receiving money.
2. Minimum documents.
3. The contract is drawn up on the spot, without the need to collect various certificates and instructions.
4. If gold is transferred as collateral, then you can terminate your relationship with the pawnshop at any time. You won't have to pay any fines or fees for this. However, if due to the fault of the client there is a delay in payment or return of money (in the case of a secured loan), then the pawnshop has the right to impose fines. Most likely, they will be charged at double the rate.
5. When donating gold, its fineness does not matter.
6. The purchase can be considered as a place to store valuables if you need to go somewhere.

However, there are also disadvantages to this choice:

• pawnshops set low prices for accepted items;
• when valuables are given as collateral, the loan received will be small;
• the interest rate on the loan in this case is significantly higher than in a bank;
• The loan is provided for a minimum period - several days, weeks or months.

How pawn shops cheat customers

The lending industry has always attracted scammers of all ranks. Some people want to give less but receive more. The latter strive to receive, but not return anything. Previously, we looked at what borrowers are doing to keep the gold and profit from the money. The time has come to find out how pawnshops “respond” to naive attempts to declare that the chain weighed not 5 grams, but 50 when handed over. It is important to emphasize that lenders have more sophisticated and effective means of removing money from the pockets of desperate borrowers.

Let's look at how pawn shops deceive clients in practice.

To avoid becoming a victim, you should not trust the first person who offers to buy everything “at a good price.” It won’t hurt to study the conditions in several organizations and read the contract carefully before signing, but if you are sure that you are being deceived in some way, write a complaint.