Information for Pawners

1. What is the interest rate charged by pawnbrokers?
Under the Pawnbrokers Act 2015, the maximum interest rate a pawnbroker can charge is 1.5% per month.

2. What is the time limit for me to redeem the jewellery which I have pledged?
A pawner should take note of the expiry date of the pawn ticket. A pawner can redeem his/her jewellery before the pawn ticket expires, i.e. within 6 months. Within this 6-month period and at any time after the end of the redemption period but before the pledge is forfeited, a pawnbroker is not allowed to dispose of the pledge. The period of redemption can be extended subject to the agreement between both the pawner and the pawnbroker. A Notice of Forfeiture will be served to the pawner by the pawnbroker within 2 months upon the expiry of the redemption period and the pledge is forfeited in the event that the pawner does not redeem it within one month after the Notice Forfeiture is served.

3. How much do I have to pay in order to redeem the goods which I have pledged to a pawnbroker?
To redeem the goods which you have pledged to a pawnbroker, you must pay an aggregate amount comprising the loan quantum and the profit (i.e. interest on the loan). The profit is capped at 1.5% of the loan amount per month.

4. What should I do when I receive a Notice of Forfeiture from the Pawnbroker?
A Notice of Forfeiture informs you of the impending event that your pledge will become the absolute property of the pawnbroker. You should pay attention to the deadline indicated on the Notice of Forfeiture and approach the pawnshop on or before that date to redeem your pledge. Once the deadline has passed, you would no longer have the right of redemption and the pledge becomes the pawnbroker’s absolute property.

5. What should I do if I lose my pawn ticket?
If you lose your pawn ticket, you may go to the pawnshop concerned to make an application to prove that you are a person entitled to redeem the pledge. The pawnbroker will then make reasonable inquiries as to the truth of the matters stated in the application and issue a replacement pawn ticket once they are satisfied that you have the right to redeem the pledge under the Pawnbrokers Act 2015.

6. When are the pawnbrokers’ auctions?
With the enactment of the Pawnbrokers Act 2015 on 1 April 2015, pledges taken in by pawnbrokers from 1 April 2015 onwards that remain unredeemed on the expiry of the lawful redemption period will be forfeited instead of auctioned. In the event of such a forfeiture, the unredeemed pledges becomes the absolute property of the pawnbroker.
The last public auction of pawnbrokers’ unredeemed pledges was held on 24 October 2015.

7. How do I know if there is any surplus due to me from the items pawned before 1 April 2015 and how do I get the surplus back?
Please refer to this link for information on how you can check for and recover any unclaimed monies due to you in relation to unredeemed pledges auctioned on or before 24 October 2015.

8. What are the modes a pawnbroker may serve a notice of forfeiture?
Please refer to this infographic for the permitted modes of serving a notice of forfeiture by a pawnbroker.

9. Are pawnbrokers allow to charge a pawner an administrative fee for a pawn ticket?
Yes, pawnbrokers that offer cashless payment modes* may charge a pawner a fee of $2 for each pawn ticket issued. Please refer to this infographic and Second Schedule under the Pawnbrokers Act 2015 for more information.

_{*Credit facilities (e.g. credit cards) are excluded.}