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KembaraXtra – Legal Terms – Pawn (Pledge)
A pawn, also known as a pledge, is goods delivered as security for a debt or loan.
The owner of the goods, called the pawnor, transfers possession to the pawnee while retaining ownership.
If the loan is repaid, the pawn is returned to the pawnor.
If repayment is not made, the pawnee may generally sell the goods and apply the proceeds toward the debt.
Pawnbroking transactions are regulated by the Consumer Credit Act 1974.
A pawn, also known as a pledge, is goods delivered as security for a debt or loan.
The owner of the goods, called the pawnor, transfers possession to the pawnee while retaining ownership.
If the loan is repaid, the pawn is returned to the pawnor.
If repayment is not made, the pawnee may generally sell the goods and apply the proceeds toward the debt.
Pawnbroking transactions are regulated by the Consumer Credit Act 1974.
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