Cash loans with high interest rates and payday advances are dangerous traps designed to catch the vulnerable and desperate. Companies that offer loans using your jewellery as security have the odds stacked in their favor because of the terms they use and the interest rates they charge.
In New Zealand there have been many cases where ‘Pawn Shops’ have been charged because their annual interest rates differed from that disclosed in their loan documentation. Breaches of the “Contracts and Consumer Finance Act (CCCF Act) and the Fair Trading Act” are serious and clearly show a premeditated approach to defrauding New Zealanders. Those who seek to take loans from pawnbrokers and payday lenders can be particularly vulnerable due to financial stress.
Anyone that thinks they have signed something that was misrepresented or their rights under the Act have been breached, should make a claim to the Commerce Commission.