The origin of pawnbroking can be traced back to thousands of years when pawn shops first turned up. And, lending cash against assets has been a practice in many ancient countries like China, Greece and Europe. While more and more people today prefer this convenient high street way to raise cash for a short period, trustworthy pawnbrokers London are working to make the pawnbroking process more secure, transparent and straightforward.
However, pawnbroking in Europe started to flourish during the Middle Ages. The practise of pawnbroking was introduced in England by Norman Conquest. While the first bank of England indeed established ‘pawnshops’ in 1695 with a specific interest rate, it helped the poor who had no legal protection at that time. Moreover, the Lombardy region of northern Italy was another seedbed of pawnbroking, and gradually, the term ‘Lombard’ became synonymous with the term ‘pawn shop’.
Pawnbrokers Licence Law of 1785
The Pawnbrokers Act of 1785 licenced the pawnbrokers for £10 in London and £5 for the country that was indeed a staggering sum at that time. This ensured that London pawnbrokers were heavily regulated and abided by specific rules. However, the rate of interest was set at 0.5% per month, and the maximum loan term was confined to one year. As per the law, pawnbrokers could be fined twice the worth of an item for not returning it after the payment was made.
The Pawnbrokers Act of 1800
Lord Eldon introduced this act that became quite popular among pawnbrokers because it increased the interest rate up to 1.5%. The licence fee was also increased to £15. However, the legislation was revised three times, and a new act of 1872 replaced it finally. In fact, pawnbroking served as the only convenient means of obtaining a loan for the poor during this time.
Pawnbrokers Act, 1872
The Pawnbrokers Act of 1872 introduced many rules that are yet in force today. Individuals under 12years of age or drunk were denied a pawn loan. Licenced pawnbrokers London were required to engrave the word ‘pawnbroker’ above their shop’s doorway.
Pawnbroking became highly popular because of the industrial revolution, creating a new base of the working class. However, it continued to stay popular until after World War II.
The Process of Pawnbroking Today
Although pawnbrokers once earned itself a prejudiced reputation in the past, their image has significantly changed over the last twenty years or so. Indeed, the upsurge in the pawnbroking industry came during the credit boom in the 1980s. However, things for London pawnbrokers today are not much different from what they were in the Victorian period.
Indeed, all pawnbrokers in London are now heavily regulated and required to acquire a licence to trade from the Financial Conduct Authority. London is the early home of luxury watches and fine jewellery. And, the famous street such as Hatton Garden is the home to nearly more than 300 diamond and jewellery trading business.
Trustworthy pawnbrokers in Hatton Garden, like at The Luxury Hut provide discreet and transparent pawnbroking service and an instant asset-based loan against watches, jewellery, diamond and gold. Whether you are looking to pawn your luxury watch or get a loan against a diamond ring, get in touch with the reliable pawnbrokers Hatton Garden or your local trustworthy ‘pawnbrokers near me’ and receive an instant cash loan offer without any obligation and credit check.