Licensed pawnbrokers use stipulated forms containing conditions which are legally valid and which impose an interest rate of not more than two per cent a month. Reuters File Photo
PUTRAJAYA: The Housing and Local Government Ministry yesterday advised the public to patronise licensed pawnshops, as opposed to illegal ones.
According to Supt Mohd Fauzi Hassan, the head of the ministry’s investigations and monitoring branch (community credit control), the hallmarks of licensed pawnshops include premises with signboards bearing the words ‘Pemegang Pajak Gadai Berlesen’ (Licensed Pawnbroker).
Furthermore, licensed pawnbrokers use stipulated forms containing conditions which are legally valid and which impose an interest rate of not more than two per cent a month.
The time frame for goods to be pawned is six months or more depending on the agreement entered into, and pawned goods are stored at premises in highly secure conditions, with insurance coverage also provided, Mohd Fauzi said, adding that pawned goods which are not redeemed will be auctioned off and if proceeds from the auction exceed the payment owing to the pawnbroker, the remaining funds will be returned to the customer.
Speaking to the media during a press conference here, Mohd Fauzi said illegal pawnbrokers constantly try to hoodwink unsuspecting members of the public with attractive advertisements, particularly through social media platforms.
He warned that these illegal businesses also put up advertisement boards bearing offers such as ‘Beli Surat Pajak’, ‘Upah Simpan’ and ‘Beli Barang Kemas’, and took a monthly profit of more than two per cent from customers.
Explaining that there are currently 623 licensed premises across the country, Mohd Fauzi advised the public to search for licensed pawnbrokers in Peninsular Malaysia by using the ‘i-Gadaian’ app. – Bernama