translated from Spanish: What you need to know before you go to a pawn shop

If the expense made in December is already resorbing your pocket and the January cost looks endless, and you need to resort to a loan with collateral, before going to a pawn shop there are things that you should be very clear about.
Choosing the best option can be very complicated, don’t leave your belongings with the first one you find, it may not be the most suitable for your finances. It is recommended that you compare at least three different institutions, so that you can make a more informed decision.
Read: Don’t Get Your January Cost: Tips to Improve Your Finances in 2020
There are currently 7 thousand 653 companies registered to operate as a pawn shop.
According to the Federal Consumer Attorney’s Office, 25% of pawned garments are not recovered and two-thirds are resold within 50 days.
We tell you what to consider:
-Review the contract to prevent excessive charges and unfair terms.
-Remember to consider the interest rate you are charged and the expenses, such as those for storage and insurance of goods in case of theft, loss or loss.
-Consider what percentage of the appraisal of the garment will be that will be under warranty.
-Check payment terms and endorser opportunities.
– Ensure that the payment, in order to recover the good, does not exceed 35% of its total revenue.
-Before going to a pawn shop, check that it is registered with profeco at the following address: https://rpce.profeco.gob.mx/casa_empeno.php
-Check the behavior of the pawn shop to see if they have complaints in profeco’s commercial bureau in: https://burocomercial.profeco.gob.mx/
-Check that the scale where your jewelry is weighed has the profeco verification hologram, this ensures that it is calibrated and that the weight shown is the real one and that they are not giving less money for the garment.
-Ask about the co-owners (people who can perform in your name).
– Please note that they cannot calculate interest interest on your amount payable, they are only calculated on the debt.
-By not making the payment of the endorser or performance on the date specified in the contract, the garment will be put up for sale and can be recovered through out-of-time performance, provided that it has not been sold or set apart.
– The contract should include the description of the garment, amount borrowed and its percentage of appraisal, payment terms, forms of payments, endorser options, guarantees and its coverage, and the consequences in case one of the parties fails to comply with the contract.
-Don’t be unhesed and ask about concepts that aren’t clear to you.
-Ask how many endorsements (contract renewals) you are entitled to and how long they extend the period to recover your belongings in case you are unable to meet the payment.
-To ensure the lawful provenance of some goods, such as cell phones, institutions such as the National Monte de Piedad do not accept these products in commitment, unless the original invoice is available.
-Always keep the ballot of the item already pawned, and for no reason to endorsing or transferring it. Since even if the item cannot be recovered and is sold, this is the proof to demand a compensation amount.
-In case of non-compliance with the terms and conditions agreed in the contract, consumers can call the Consumer Phone 55 5568 8722, in Mexico City and the metropolitan area, or 800 468 8722 in the rest of the country
According to a survey conducted by the Coru.com services finance platform, the items that Mexicans most pawn to get out of their debt spending are jewelry with 32.2% of the total, followed by televisions with 20.2%, computers or tablets 16.6%, cell phones 14.4%, watches 12.6% and others, such as cars 4%.
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Original source in Spanish