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.
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:
- amount of the principal loan;
- interest rate in percent;
- period of maturity;
- description of the pawn;
- expiry date of redemption period; and
- 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:
- 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
- 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
- Handbook on Consumer Laws. Bangko Sentral ng Pilipinas 13 2007. SES Consumer Affairs Unit. Page 12-13.