What are consumer credit pawnbrokers and how do they work in New Zealand?

In New Zealand, consumer credit pawnbrokers are licensed moneylenders who offer loans to people using personal items as collateral. These items can be anything from jewellery and electronics to vehicles and machinery.

Pawnbrokers assess the value of the items offered as collateral and then offer a loan for a percentage of that value. The loan amount and interest rate will be based on the pawnbroker’s assessment of the item’s value and the borrower’s ability to repay the loan.

The loan period is usually between one and six months, and the borrower will need to repay the loan plus interest and any other fees within that time. If the borrower does not repay the loan, the pawnbroker has the right to sell the collateral to recoup their losses.

Pawnbroking can be a useful way to access quick cash when you need it, but it’s important to understand the risks involved before you take out a loan. Make sure you shop around to compare interest rates and fees, and only borrow what you can afford to repay.