The National Pawnbrokers Association (NPA) today highlighted how pawnbroking loans are good value for customers. With the FCA (Financial Conduct Authority) focused on pay day loans it is worth noting that pawnbroking is considerably below the new cap for pay day loans.

NPA Chief Executive, Ray Perry, says:

“Time and again, when pawnbroking loans are compared to other financial products, the pawnbroking industry demonstrates how it is providing great value for money for customers."

“The Financial Conduct Authority has decided to cap pay day loans at 0.8% interest charges per day, which is £24 per month on a £100 loan. However, pawnbroking loans still provide much greater value in terms of saving money for hard pressed consumers. Someone taking out a £100 pawnbroking loan will pay on average between £3 and £10 per month. This compares favourably to many alternative credit loans and also with high street banks who may also charge significantly more, especially for unauthorised overdrafts."

“Pawnbroking is a secured loan, you leave your item- a gold ring for example with the pawnbroker for 6 or 7 months and can redeem it any day by paying back the loan and interest due at that point."

“The NPA has undertaken research showing that 27% of the public would consider using a pawnbroker if they better understood how the process works."

“To this end NPA are running an advertising campaign to explain how it works and have created a new website –”.