How to use a legal pawnbroker in New Zealand

When you need to borrow money, one option you might consider is using a pawnbroker. Pawnbrokers are regulated by the Pawnbrokers Act 2004, which sets out rules about how they must operate.

In New Zealand, pawnbrokers must be licensed by the Ministry of Justice. You can check whether a pawnbroker is licensed by searching the public register of pawnbrokers.

When you use a pawnbroker, you leave an item of value (such as jewellery) with the pawnbroker as security for a loan. The loan is usually for a relatively small amount of money, and is for a short period of time (usually around two months).

If you don’t repay the loan, the pawnbroker can sell your item to repay the loan. The pawnbroker must give you reasonable notice before selling your item, and must sell it at a fair price.

You should only use a pawnbroker if you’re sure you can repay the loan. Otherwise, you could lose your item and still owe money to the pawnbroker.

Here are some tips for using a pawnbroker:

– Make sure the pawnbroker is licensed.

– Shop around for the best deal.

– Read the pawnbroker’s terms and conditions carefully.

– Only use a pawnbroker if you’re confident you can repay the loan.

– Keep track of when the loan is due to be repaid.

– Get your item back as soon as you can after repaying the loan.