pawnbroker

from Wikipedia, the free encyclopedia

The profession of pawnbroker is based on the granting of money loans against a lien on movable property ( § 1204 BGB ). This lien, which is established by agreeing and handing over the pledged item to the pledgee, is also known as a bargaining deposit . The conditions under which the commercial operation of a pawnshop is permitted are regulated differently by law in different countries. The activity as a pawnbroker usually requires an official permit. His place of business is also known as pawn , pawn shop , pawn shop or pawnshop called. The Regensburg pawnshop , founded in 1650, is the oldest pawnshop in Germany.

The profession of pawnbroker

Pawnshop in Berlin (1931)

Requirements for operating a pawn shop

In order to open a pawnshop, the applicant must be able to present an orderly financial situation as well as a commercial license according to § 34 trade regulations . The legal basis for the operation of a pawn shop is regulated in the pawn shop regulation (PfandlV). The applicant must apply for the trade at the competent regulatory office and submit the necessary documents. In addition to an official certificate of good conduct , proof of the necessary funds and an extract from the central trade register, the applicant also needs insurance according to § 8 PfandlV: "The pawnbroker has to pay at least twice the amount of the loan against fire damage, water damage, burglary and robbery assure."

In addition, the pawnbroker has to provide evidence of high securities in many municipalities, for example in the city of Cologne in the amount of 100,000 euros. A fee is charged for issuing a pawnbroking permit; the amount differs from municipality to municipality.

Requirements for granting a pawn loan

The pawnbroker should appear personally at the pawn shop. A proxy requires a written power of attorney. According to § 6 PfandlV, the pawnbroker has to issue a pawn ticket after receiving the pawn. This contains information about the storage and utilization of the pledge, the interest and costs of the pawn loan as well as the general terms and conditions of the pawnshop. Each deposit is provided with the number given on the deposit slip. The pawnbroker must allow at least one month to elapse after the loan maturity has expired before he can otherwise use the unredeemed pawn. Any surpluses from recovery that are not picked up by the pledger within two years must be transferred to the competent authority.

Pawnbroker services

The authorization of the pawnbroker includes the granting of a loan against the transfer of movable valuables. Certain securities ( bearer papers ) can also be accepted as collateral. The borrower does not have to show any further collateral or submit a credit report. To determine the necessary data, the pledger must identify himself with an official identification document. The mortgage loan is thus available much less bureaucratically than a conventional installment loan . The pawnbroker then pays part of the value in cash to the borrower. The loan-to-value ratio is highest for vehicles at around 80% of the value; 25% to 50% of the value are common for other items.

The deposit can be redeemed against payment of the borrowed amount plus any interest and fees. For motor-driven vehicles, the Pawn Shop Ordinance also provides that daily remuneration (so-called stand fees) can be agreed for the storage, care and insurance of the vehicles. If the pawns are not released, the pawnbroker is entitled to sell the movable items one month after the loan is due and is obliged to sell the movable items six months after the due date. Usually this takes place in the form of a public auction by a publicly appointed, sworn auctioneer. No maturity shorter than three months may be agreed.

An interest rate of no more than one percent per month or part thereof applies to the mortgage loan ( Section 10 PfandlV). In addition to the interest, there are monthly deposit fees, for which there are also upper limits: For loan amounts up to € 100, the upper limits are between € 1 and € 2.50 per month, each additional € 50 loan amount commenced an additional € 1 per month. For a € 10 loan, up to € 1 fees and € 0.10 interest are due per month, which is an effective annual interest rate of 132%. For a € 100 loan, up to € 2.50 fees and € 1 interest are due per month, which is an effective annual interest rate of 42%, for a € 300 loan 38%. With a loan amount of over € 300, the fees are subject to the free agreement between the parties.

Pawnshop in Switzerland

In Switzerland, pawnbroking is regulated by Articles 907 to 914 of the 1907 Civil Code. There it is stipulated that the pawnshop must be approved by the cantonal authorities and that the cantons can restrict it further or should only be granted to public institutions of the canton or the communes as well as to charitable enterprises. For example, the cantons of Zurich and Geneva have approved public institutions, which means that private institutions cannot offer the service. Other cantons (Schwyz, Zug, Aargau, Basel) have passed their own laws, but these are so restrictive that no private service provider has yet appeared. The canton of Bern does not have a corresponding law and decides on a permit on a case-by-case basis. However, a similarly restrictive law is due to be introduced in 2019.

There are German pawnbrokers who also serve Swiss customers, but the problem here is that pawns first have to be cleared through customs before they are imported into Germany, which costs 20-30% duties. The customer rsp. Pawnbrokers bears the risk of customs confiscation.

literature

  • Carl C. Führer: The Little People's Credit Institute. On the importance of pawn shops in the German Empire . In: Bank historical archive. Journal of Banking History (BA), Steiner, Stuttgart Jg. 18 (1992), Issue 1, pp. 3–21, ISSN  0341-6208 .

See also

Web links

Wiktionary: Pawnbroker  - explanations of meanings, word origins, synonyms, translations
Wiktionary: Pawnshop  - explanations of meanings, word origins, synonyms, translations
Commons : Pawnbrokers  - Collection of images, videos, and audio files

Individual evidence

  1. ^ A b Profession and trade pawnbroker City Office Bremen
  2. The city of Cologne requires securities of 100,000 euros, for car pawn shops of 125,000 euros. The collateral can be shown as a credit balance or as a bank guarantee. stadt-koeln.de: Pawnbrokers , accessed on May 4, 2017.
  3. Federal Chancellery - P: SR 210 Swiss Civil Code of December 10, 1907. Retrieved on October 3, 2018 .
  4. Pawn Shop | zkb.ch. Retrieved on October 3, 2018 (Swiss Standard German).
  5. CAISSE PUBLIQUE DE PRETS SUR GAGES - GENEVE. Retrieved October 3, 2018 .
  6. Pawnshop . ( sz.ch [accessed on October 3, 2018]).
  7. Pawnshop Ordinance Canton Zug. Retrieved October 3, 2018 .
  8. ↑ Detailed view of the business (shops) Grand Council - Canton of Bern. Retrieved October 23, 2018 .