Pawn Broker changing interest rate when renewing

[biggeorge]

As the title says.

 

Just been to renew my pawn shop loan (gold chains) and for the first time in years at least 5 been a customer they have changed the contract and raised the interest on me.

 

Never in 5 years has this happened, the contract is just renewed with the same terms as the original but this time they have increased the interest.

 

I had no choice but to sign as otherwise I would have lost my gold in 2 days.

 

Can they change the contract on me like this making me pay out more each month in interest.

 

Interest on the original loan was set at £12.50 and now its gone up to £13.89, While its not much it all adds up over the 6 months.

 

Anyone any ideas if this can be classed as unfair terms so I can raise the matter with the fos.

 

My wife and I do have quite a few pledges with the same company and if this is going to happen all the time we will never be able to afford to get the gold out.

 

Regards

 

George

[renegadeimp]

They can change the interest but they should give good notice that they are doing so. It's a downside of pawn shops.

[biggeorge]

No notice at all, Went in to pay off the loan interest for the last 7 months £99.97 (extra month too), Interest was set at £12.50 per month

New agreement made up (New change of ownership) and the interest rate had increased to £13.89, Only notice I got was

assistant saying thats your interest and 6 months to get it out., Didn't state it was going up at all.

 

Just priced up all our tickets and we are plainly f***** , 12 tickets between us and close to £2500 if run to term or just under

£2000 to get them out now. Most of it sentimental so not something we can just let go.

 

George