Pawnbroker sold goods on buyback scheme

[the tinkerman]

Hi

 

was looking for some advice for a friend of mine please.

 

 

She went back to the pawnbrokers to buy back her rings which are worth a substantial amount of money well within the given timescale

but when she got their to by them back she was told they had been sold what rights does she have and what can she do.

 

Tinks

 

Sorry mean't to put this in legal section can someone from site team please transfer.

Edited April 23, 2013 by the tinkerman

[maroondevo52]

 

Sorry mean't to put this in legal section can someone from site team please transfer.

 

[Sidewinder]

She should have been given all the paperwork required when pawning the rings - does that confirm the precise nature of the agreement.

 

Is she sure that she pawned the rings and didn't inadvertently sell them as scrap gold?

[the tinkerman]

Yip

 

She has all the paper work for a buy back and went in even before the due date to buy them back and they have admitted it is their mistake but now they are tryin to fob her off with lesser rings

[Sidewinder]

So liability is not disputed, merely the amount and means of compensating for the loss?

 

Does your friend have any official insurance valuation for her rings before they were lost? Did the pawnbroker give any valuation for insurance purposes (valuation of jewellery, as with antiques can be on different scales depending whether the purpose is for insurance etc)?

 

Are the rings still available - new - today? What I mean is would it be possible to obtain an accurate appraisal of the retail value based on an agreed description at the time they were pawned.

 

This should just be a matter of agreeing an accurate value and the pawnbroker's insurance settling a claim.

[the tinkerman]

Yip Liability not disputed just messing her around

.

 

From what she tells me one ring when she bought it new was £900 now for sale new for £1600 at jewellers and the other bought new for £500 now for sale new for £900 at jewellers has got receipts from when bought, although I know they are now secondhand would she be entitled to ask for any money back as what they are stating at the moment is a like for like swap but the ring is nowhere near the quality of the original and now they are stating that they will only give her the one ring and they will call it quits with the other less valued!

 

I'm not to sure if she has got any official valuation will ask her, but don't think the pawnbroker give any valuation.

 

Must stress not one of the more well known pawnbrokers seems just a one man band local shop.

[steampowered]

Do you know what the pawnbroker sold it for? Ask him to produce the receipt. That will give you an idea of what the pawnbroker thought the ring was worth.

[the tinkerman]

If she can find out what the pawnbroker sold them for can she claim that amount back, what rights has she and what exactly can she claim back saying the rings are now nearly double in price new to when she originally purchased them.

[stu007]

Hi this is from this HMRC Link: http://www.hmrc.gov.uk/manuals/mlr3cmanual/mlr3c2111.htm

 

MLR3C2111 - Legislation: Pawn Broking

 

Pawn broking is the most common consumer credit activity carried out within MSBs and is usually provided alongside cheque cashing. Pawn brokers provide short term loans for those in need of immediate cash. Typical loans offered by pawn brokers are short-term in the region of £100-£1,000,000 secured against watches, jewellery, gold, antiques, fine art, cars and other valuable items. The pawn broker will value the goods to be pledged and agree the value with the customer.

 

If the customer decides to go ahead with the transaction he then signs an agreement which includes the terms and conditions of the loan. The customer also receives a pawn-receipt for presentation when redeeming the goods. The items pledged are safely stored usually at the premises of the pawn broker, fully insured and remain the customer’s for the duration of their loan The consumer credit agreement will be for a minimum period of six months and the customer is entitled to redeem property by repaying the original loan plus the monthly amount due at any time during the contract period.

 

When the loan and the interest are paid, the goods are returned to the customer. If the customer has not repaid the loan during this time and the loan was over £75 he will receive notice that the property is due to be sold giving him a further statutory period of 14 days in which to redeem (the customer will normally however have the option at the end of the contract to renew the loan by the payment of interest only and the rewriting of a fresh agreement). If the customer does not renew or respond to the notice served, the pawnbroker may dispose of the goods.

 

Advantages are that no credit checks are required.

 

Disadvantages are that for short-term pawnbroker loans over £1000, the charges can be in the region of 4%- 5% simple interest per month (53.8%APR - 69%), and for loans of less than £1000 charges in the region of 6% simple interest per month (85.0%APR). However, these pawn loan rates can be extremely attractive when compared to alternatives such as payday loans or unplanned overdrafts.

[steampowered]

She can claim back the value of the rings, on the day she was entitled to get them back, minus any unpaid loan. We are looking at second hand rings in an equivalent state of wear and tear, not new rings.

 

Obviously it is not easy to assess precisely what second hand rings are worth. The amount the broker sold them for should be a guide to what the broker thought they are worth. If you think they were worth much more than that then he will need some convincing, so you will need to present him with evidence (I don't know if there are places you can go to get second hand ring prices). If you can't reach agreement then ultimately you will have to go to county court small claims track.

[Sidewinder]

That is a good point - the pawnbroker will have sold them for their current second hand market value, UNLESS they have been sold simply as scrap - so they should certainly have a record of what they were sold for.

 

Valuation is a tricky subject with jewellery as it can be valued for Insurance purposes, for Probate and for security against a loan - or as a purely scrap value - all of which carry a different value. It is also possible to get a second hand sale value, but of course not without the valuer seeing the goods!. A proper NAG qualified jeweller (as opposed to a high street store) should be able to give an approximation for a second hand value based on the retail price of a new item.

[renicco]

Pawn broker can sell that rings till the time period elapse.She should show him the recipt of the rings that she pawed in return of money.And if he sold her rings he should pay back the exact amount of the rings.

[JoeyJoeC]

What if he sold them for next to nothing to his friend, knowing he would only have to pay her back the value he sold them for? I don't think what he sells them for matters for what he should pay her.