Pawn broking question

[MadMullah]

Quick question

Why is a pawn to the value of £75 or less a pawn but anything over is referred to as a private treaty?

Turns out if you pawn the pawn broker owns the item but not if you enter a private treaty...

[peter smith]

Like a bank,a Pawnbroker earns income on the interest that is charged on the loan secured by a pledged item. In order to accept goods into pawn a pawnbroker makes an on-the-spot valuation of the goods. The customer and the pawnbroker will agree the sum to be advanced and the pawnbroker presents new customers who ask for it, a completed document called 'Pre Contract Information'. If the customer has not repaid the loan during time and the loan was over £100 he will receive notice that the property is due to be sold giving him a further statutory period of 14 days in which to redeem (the customer will normally however have the option at the end of the contract to renew the loan by the payment of interest only and the rewriting of a fresh agreement).