Pawnbroking Repayment Options

Flexible repayment options designed to help you manage your loan and reclaim your item when it suits you.

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Repayment Options

Understanding your options

Pawnbroking is intended to be short-term borrowing (maximum term of 6 months).

To ensure you can redeem your pledge on or before expiry, we encourage customers to make repayments throughout the term, to avoid having to produce a lump sum payment which may put a strain on your budget.

Part Pay: During the term of your agreement, any payments made will be allocated appropriately against the loan amount (principal) and interest accrued, depending on how much you pay. This will reduce the amount due and is the best way to ensure that you will be able to redeem your goods.

Any part payments made throughout the term will be returned to you should you not redeem your property within the term specified in your agreement.

Redeem: You can choose to reclaim your property at any point within the loan term by paying the full amount borrowed + interest accrued.

Pay Down: We are not obliged to renew pledges at expiry. However, if you do wish to reclaim your property and you cannot do so within the 6-month term, you can repay some of the principal as well as any interest due. You will then be issued a new contract for a further 6-month term. Please see the table below for the minimum repayments:

Renewal Repayment Terms Payment Amount (based on £100 pledge)
1st renewal Interest accrued + 10% of the original loan (principal) Interest due: £59.40; Principal: £10.00
Total payable: £69.40; Loan balance: £90.00
2nd renewal Interest accrued + 20% of the principal outstanding Interest due: £53.46; Principal: £18.00
Total payable: £71.46; Loan balance: £72.00
3rd renewal Interest accrued + 30% of the principal outstanding Interest due: £42.77; Principal: £21.60
Total payable: £64.37; Loan balance: £50.40
4th renewal Interest accrued + 40% of the principal outstanding Interest due: £29.93; Principal: £20.16
Total payable: £50.09; Loan balance: £30.24
5th renewal Interest accrued + 50% of the principal outstanding Interest due: £17.96; Principal: £15.12
Total payable: £33.08; Loan balance: £15.12

This example is for illustration purposes only, and you can choose to reclaim your property at any point within the loan term by paying the balance owing and interest accrued.

Expired Items: Please note that you do not have to reclaim your property at all. The pledged item serves as repayment of the loan amount – no payment is required. While we never wish to sell anyone’s pawned property, allowing the item to expire and go unredeemed is a reasonable option. Sale of the property repays the loan and, in an event, where sale price exceeds loan value + interest and costs of sale you will be paid surplus.

Not redeeming your items will never impact your ability to get further loans; you will never have an outstanding balance owing; and your credit rating will never be affected.

If you need help at any stage, are struggling with your finances, mental health or in any other way, please tell us so that we can try to help.

Remember:

  • Always try to repay your loan as quickly as you can.
  • Renew a loan only if you are confident that it is in your best interests.
  • Does the benefit and likelihood of getting your property back outweigh the interest to be paid?
  • If borrowing for longer than a normal pledge term, could you get a better deal borrowing from another credit provider like a bank?
  • Allowing your pledge to be sold can be the rational, best option.
  • NEVER borrow from unregulated lenders.

FAQs

At Cash Shop, we believe you should be able to get your cash any time you need it.

The term of your contract is 6 months, from the date you received the loan.

No, you can redeem at any time. You will be charged the daily rate of interest up to the date of redemption, plus a 14- day early settlement fee (the full amount will be due within the last 14 days of the agreement). You also have the right to withdraw from the agreement within the first 14 days; you must implicitly state you wish to withdraw from the agreement, and upon repaying the principal loan amount plus interest, the contract will be deemed cancelled.

Yes! We strongly encourage that you make partial payments, if possible. When your partial payment reduces the principal loan amount, this will reduce the total amount of interest you’d pay over the term of the loan. Partial payments also mean you won’t have to pay as big of a limp sum when you redeem your item.

You can still redeem or renew your item(s) however, there is a £3.00 lost document fee for pledges £75 or less, and a £5.00 fee for pledges over £75.00. You will have to complete a Statutory Declaration that would need to be signed by a solicitor, which may incur even more charges. We recommend that you put your contract in a safe place as soon as possible, so you always know where it is! It should be noted that a pawnbroking contract is transferable, so if you lose it and someone else finds it, they would be able to redeem your goods. This is a very unlikely scenario, however, but one you should be aware of.

As mentioned above, the pawnbroking contract is transferable so whomever is in possession of the contract can redeem it. However, because a renewal of the contract requires a signature, only the customer who took out the loan can renew the contract. Also, a third party (someone other than the person who took out the original loan) would not be able to redeem the item without the original contract.

As a courtesy, we send a text messages and letters to remind you the item(s) are due. If you would prefer for us to hold it/them for longer, you can pay any interest owing and renew the contract for a further 6 months. However, we do want you to be able to redeem your items and would encourage partial repayments during the term of the loan, which makes redemption more affordable. If you do not redeem or renew your item(s), you would forfeit the goods. Cash Shop
will endeavour to achieve the best possible price for your unredeemed goods, the proceeds of which would go towards settling the loan. If the item sells for less than what we loaned to you plus interest and costs, this would result in a ‘deficit’. However, Cash Shop would not pursue borrowers in the instance of a deficit. In the vast majority of cases, the proceeds would cover the original loan amount, and most of the interest and costs, so we are fine with that. If, however,
the proceeds of the sale are greater than the loan amount (and the loan amount was greater than £75), interest and costs, this would result in a ‘surplus’, and the surplus would be paid back to you.

Of course! At Cash Shop, we understand that some customers choose not to redeem their goods, for their own reasons. We also understand that the need to use the service again may arise, and we are always happy to help

Most competitors charge around 10% interest per month, whereas Cash Shop’s rate are as low as 2.9% per month and never higher than 8.9% per month. We also send reminder texts and letters to help you effectively manage your loan repayment.