Many Are Fooled, Here Are The Characteristics Of Illegal Pawnshops

Pegadaian illustration (Doc. Antara)

YOGYAKARTA The pawning system is one way that people often use to get funds quickly when needed. Usually, people will pawn letters or valuables in accordance with the provisions in pawning. However, it should be noted that there is a mode of crime that disguises itself as an illegal pawning. Then, what are the characteristics of illegal pawning that are rampant?

Referring to the Big Indonesian Dictionary (KBBI), pawning is a time-limited activity of borrowing money by handing over goods as dependents or collateral. If the loan exceeds the stipulated time limit, the item will be the right and ownership of the lender.

Meanwhile, pawnshops, in KBBI, are defined as pawnshops. In Indonesia, pawnshops have permits and are supervised by the Government. Companies that provide pawnshop services are regulated as well as supervised by the Financial Services Authority (OJK), both private pawnshops and those owned by the government.

In practice, pawnshops supervised by the OJK will carry out their activities in accordance with applicable regulations. However, illegal pawnshops that do not have permits are vulnerable to legal problems, even lead to crimes. To avoid illegal pawnshop practices, know the following characteristics of illegal pawnshops, quoted from the official OJK website.

Illegal pawnshops usually do not have a special place that functions as a place to store pawns belonging to customers. The existence of this place is important considering that pawnshops can be ascertained as valuables so that they need a special place that is guaranteed security.

In the pawning activity, the pawnshop will provide an estimate on the collateral submitted by the pawnshop. This assessment activity cannot be carried out carelessly, the pawnshop's assessor must be certified through various trainings.

Illegal pawnshops will usually provide interest on funds lent through a pawn system with high numbers. In fact, the determination of interest rates seems to be consensual and unlogical. Customers can compare loan interest rates with loan interest rates given by banks.

Customers must know that excess money from the auction is the right of customers. The excess auction money is the difference in the proceeds from auction sales minus the loan money lent to customers. Pawnshops will sell customers' pawnshops by auction. If there is a difference or remainder, it will be returned to customers. Illegal pawnshops usually do not manage the excess auction money.

The legal pawning company will insure all goods guaranteed by the owner to avoid potential damage or loss. If the pawn company does not insure the goods pawned, it is possible that the company does not have a license or illegal.

The pawned evidence issued by illegal pawn companies is usually of low quality so that it is easily damaged or torn apart. Not only that, the rules governing pawning activities usually only benefit one party, in this case pawning companies. Meanwhile, customers tend to be harmed.

Illegal pawnshop companies can be ascertained not to be registered with the OJK. To check, the public can check via telephone number 157, Whatsapp [phone], or via consumer email @ojk.go.id.

That's information about the characteristics of illegal pawnshops. Visit VOI.ID to get other interesting information.