Pawner Rights: The Handbook on Consumer Laws

The Handbook on Consumer Laws published by the Bangko Sentral ng Pilipinas (BSP) lays out some of the basic rights of a pawner when dealing with a pawnshop. MIM publishes them here as guidance for pawners and suggest all pawners know their rights. Also be aware that these may not be the only rights pawners have under BSP regulations.

Pawnshop Transactions

Section 4303P, MORNBFI*:

gives the right of the pawner to renew his loan for such amount and period as may be agreed upon between the pawnshop and the pawner, subject to conditions provided by the MORNBFI; it further gives the right of the pawner who fails to pay or renew his obligation to redeem his pawn ninety (90) days from the date of maturity by paying the principal amount of the loan plus the amount of interest that shall have accrued thereon

Section 4322P, MORNBFI:

requires the following information to be disclosed in the pawn ticket:

  1. amount of the principal loan;
  2. interest rate in percent;
  3. period of maturity;
  4. description of the pawn;
  5. expiry date of redemption period; and
  6. such other terms and conditions as may be agreed upon between the pawnshop and the pawner

Section 4323P, MORNBFI

requires the pawnshop to notify the pawner in writing on or before the expiration of the ninety (90)-day grace period:

  1. that the pawn shall be sold or otherwise disposed of in the event that the pawner fails to redeem the pawn within the ninety (90) – day grace period; and
  2. the date, hour and place where the sale shall take place

It further provides that the pawnshop may sell or dispose of the pawn only after it has published a notice of public auction of unredeemed articles held as security for loans in at least two (2) newspapers circulated in the city or municipality where the pawnshop has its place of business, six (6) days prior to the date set for the public auction. In remote areas where newspapers are neither published nor circulated, the publication shall be complied with by posting notices at the city hall or municipal building of the city or municipality and in two (2) other conspicuous public places where the pawnshop has its place of business.

Section 4324P, MORNBFI

requires public auctions to be held either at the pawnshop’s place of business or any public place within the territorial limits of the municipality or city where the pawnshop conducts its business

Section 4182P, MORNBFI

No pawnshop shall close or transfer its place of business within three (3) months following the maturity of any loan or pledge, or before any pawn shall have been sold or disposed of

*Manual of Regulations Non-Bank Financial Institution


  1. Handbook on Consumer Laws. Bangko Sentral ng Pilipinas 13 2007. SES Consumer Affairs Unit. Page 12-13.



16 Responses to “Pawner Rights: The Handbook on Consumer Laws”

  1. cely Says:

    hi thank you for this very informative article.
    May i ask please the rights of the pawner if the jewelry pawned was broken while it is under the responsibility of the pawnshop. Thank you and hope to receive email for your reply.

    • Ma.Isabel Salvador Mendoza Says:

      Hi Cely,
      Yes, you are right that all pawnshop should take responsible on all the items that are pawned and being pawned to them. I also discuss this on pawnshop operation and gold course, pawnshop responsibilities to pawners. Appraisers must be very careful in doing the procedures, most specially on the items that are thin and soft for say bracelets,earrings or necklaces. It is not intentional, its on the negligence on their duty. You didnt mention in your comment whether you learned the incident before or after the pawning, but nevertheless, if the incident (broking of the jewelry) happened during the procedure, the appraiser should be honest enough to let you know about what had happen to the jewelry and let them be responsible for the repair upon the redemption of your pawn. because once the pawn is in they have no more right to open seal the pawn. You also have the right of an option, say you will have it repair and give the receipt to reimburse what you’ve paid for or you come with them where they will bring the item for repair. The appraiser will be charged for that and not a pawnshop expense.
      Please feel free to consult me anytime regarding pawnshop matters I am always here to guide you.

  2. Jay Says:

    Hi, i would like to ask if it is lawful for a pawnshop to charge the pawner a 2.5%/15 days (not stipulated in the ticket) plus storage fee per 15 days (i learned after i asked whats the charge for) for the article being pawned? It also indicated in the pawn ticket that the expiration date of redemption is on the 15th day after the date of transaction. Renewable every 15th day. So it means its 5%/month plus storage fee. I also would like to know if the pawnshop has a violations for there is no written terms and conditions at the back of the ticket as what others have like Cebuana, what they have is acknowledgment that the article is property of the pawner for that i have to affix my signature and NO TRANSFER POLICY (meaning the pawnshop will not be held liable for the article due to burglary incase the pawner insist on no transferring units to their head office for security, this maybe the reason why there is a storage fee). I hope i could get a positive response and advice me of what i have to do. Thank u so much.


    • Ma.Isabel Salvador Mendoza Says:


      It depends on what is agreed upon between you and the pawnshop. If the ticket they issued has no terms & conditions at the back of the ticket, then you should have questioned them that before dealing with them for a transaction. If you felt like your item is not secured as well.

      Regarding the date, did you agree that your pawn be matured or expire on or before the 15th? For as long as it is stated on the face of you ticket the date of loan, maturity and expiry date that is legal.

      Regarding the interest rate, it is floating but the standard interest rate is 5%. And again if they charge you a storage fee and you agree with them, that’s another thing.
      – Show quoted text –

  3. Marites De Leon Says:

    My pawn expired on the date of redemption and i didn’t notice it. I went to the pawnshop to settle and pay the interest due.
    But i was shock with the interest and penalty when they give the computation. Is there a certain percentage on the expired items after the 90days grace period? Please help me.

  4. alec Says:

    hi..paano kung di ko na naTubos yung isinangla ko alahas at ayaw ko tubusin????

  5. Jeremy Says:

    Ang problem ko po is ayaw ibigay yung alahas na sinanla ko. May 2015 kinukuha ko na siya pero lagi sinasabi ng pawnshop na wala yung boss nya. Umabot na po ng 2 months di parin nabibigay and syempre umaandar yung tubo. They told mo na di na aandar yung tubo, pero sinigurado ko po at binabayaran ko parin kasi baka biglang maremata yung alahas ko at wala naman ako written proof na talagang di nila tutubuan. Anong action po ba ang pwede ko gawin?

    • Maria Isabel Salvador Mendoza Says:

      Report it to the Bangko Sentral ng Pilipinas (BSP) office in Malate Manila. Office is in front of Harrison Plaza. There must be a problem inside pawnshop office marami reasons why they can’t give back to your item/s despite of redeeming it. Bawal kasi yun tinutubos mo or nagbabayad ka ng interest sa tamang takda .. Not unless lumagpas na ng expiry date nung magpunta ka sa pawnshop para magbayad. Ndi na nila talaga yan maibibigay sa iyo.

      • violeta salazar Says:

        I need your help po last year po na robbed yng pinagsanlaan ko laht daw po lam ng vault nawala kasama na item ko.and nung nlaman ko nkipag usap ako sa kanila and willing nmn dw po cla palitan kaso.hnd na katulad my kapareha po sa item ko my npili ako sa display nila the same grams pero for sale dw yun hnd pwd yun ang ipplit my bngay cla my damaged po yng iba.Tulungan nyyo po ako ano po dapat kung gawin? Mga tanong ko?1. Tutubusin kopa rin sa presyong sinanla ko ang kapalit sa alahas ko.?db po nka ensurd po yng mga pawnshop ibig sbhin wala po clang lugi.db dapat ibalik nila item ko ng hnd na tutubusin kc nawala nila eh ngligence po nila yun.3 db po dapat ang ipapalit nila ang grams value ng item hnd po sa binibenta nilang price value.?

      • Maria Isabel Salvador Mendoza Says:

        Hi Ms. Violeta, tungkol sa concern mo sa alahas na sinangla sa pawnshop at nakasama sa mga robbed items, yes may right ka to demand for the same item, same design, same weight in grams and that is their and responsibility to pawners … And since you pawned the item to them you have the obligation to pay the pawnshop principal plus interest. Not all pawnshops are insured …

  6. Jardine april Says:

    Hi po.nagsanla po kc ako ng phone then nung time na tutubusin ko sira na ung unit ko Lcd po ung sira.anu po ung dapat kung gawin?umabot na kasi sa lupon ung kaso namin ayaw mkipag ayos ng pawnshop please help po.


      Jardine, gaano katagal inabot yun sangla mo sa pawnshop? Yan ang risk of both pawner and pawnshop pag inabot ng matagal sa loob ng vault, 2nd, I supposed the item is second hand nung sinangla mo, and the way all pawnshops test it is to see and check if all specs are functioning. The deeper problem or defect of any item hindi pa maddiscover. That’s the reason why pawnshops offer short terms for gadgets.

  7. Mark Veneranda Says:

    Hi meron po ko nasanla na motor last 9/22/17 at maturity date is 10/21/2017 hindi ko po sia natubos up until date before ng 90 days period dahil sabi eh na forfeit na item at past months they keep on pressuring na mareremata na. ngaun po na remata na tuluyan before un redeem date na January 21 (90 days)..anu po pwede ko habol na makuha ko pa motor..mayroon po ba nakasaad sa regulation na kung skali na auction item is yun owner o pawner ang first na operan ng pawnshop to give a chance na makuha pa yon motor ko?

    Salamat po sa sagot, I’m looking forward to it.




      Hi Mark, we have fb page under I & J Business Management Consulting. Please message me there because I have questions to ask from you. Or you can call me at nos.: (02)576-53-47 09065118875 / 09985630554

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