FAQs – Frequently asked questions
What about data protection?
With us your personal information is handled in an absolutely confidential and discrete manner and we expressly declare that it will not be handed on to Schufa, the German credit reference agency!
How would you describe a typical customer seeking a loan against collateral?
Typical customers seeking a loan against collateral do not exist! The growing willingness of consumers to borrow money, high interest rates and a lack of the banks’ willingness to grant unsecured loans in the personal banking sector has meant additional customers for the pawnshops. To a surprisingly high extent even high-income earners and freelancers, as well as blue-collar workers, employees and tradespersons are taking the uncomplicated route of “pawning for money”. A loan against collateral is a secure hassle-free way for anyone to obtain money; hence it even becomes attractive to well-to-do citizens whom a bank would grant a loan at any time.
Is a loan against collateral cost-effective in the case of a short repayment periods?
A loan against collateral is a typical payday loan: The speed with which it can be obtained is unprecedentedly fast and there is no red tape, perfect for short repayment periods (days, weeks or months). A loan against collateral is a cost-effective, calculable financing alternative. Its independent interest and fee rates from regular capital market fluctuations have been stable for decades. Moreover, loans against collateral are always paid out at 100 %. A premature repayment is possible at any time without “penalty fees” or “penalty interest” incurred. No estimation or processing costs are calculated over and above the flat rate.
What happens if the pawn item is not redeemed or if the loan against collateral is not extended?
The loan agreement is initially signed for three months. If the pledged property is not redeemed within three months or the written pledge for the pawn item/s is not extended, then we are under obligation by the legislator to auction off the pledged property at the earliest a month after the deadline has expired.
What happens to the proceeds from the auction?
You are eligible to be paid out a profit if the proceeds from the pawn item/s exceed the loan and all costs incurred. If the proceeds achieved from the pawn item/s auctioned are less, an intervention into your personal wealth is excluded (there will be no personal liability, only the pawn item remains liable).
I have lost my pawn ticket – What now?
Please advise us of this immediately, so that a blocking notice can be instated (protection from unauthorised persons) and so that only you can redeem the pawn item on producing your ID.