Deena Dayalan 20 September 2020

Pawn broker asking more interest on Jewel

Actually in that jewel lending receipt they printed 16% interest per annum.now I asked about interest amount to get back my jewel.They are asking 24% interest to pay.wat to do in these case.whom to contact?

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Quick Summary

A customer is facing a situation where their pawn broker is demanding a higher interest rate than what was originally stated on the receipt. The advice given is to prioritise getting the jewellery back by paying the demanded interest, if the amount is manageable. Subsequently, the customer can pursue a complaint for deficiency in service at the District Consumer Forum, especially if they have valid receipts as proof of the original agreement.

3 Replies

G.L.N. Prasad (Retired employee.) 21 September 2020

For simple reasons, if the amount is nominal, get back the jewel by paying such interest, as entering into litigation is more expensive than such interest. Once you get back your jhewel with such receipts, then issue a notice for deficiency of service and drag him to District Consumer forum, if you can afford. The total expenditure if you are having valid receipts, may not be more than Rs.500/- and your duty is confined to saying that he has agreed for 16% but charged 24% and showing such receipts. Priority is getting back the jewel.

Deena Dayalan 21 September 2020

thank you so much for reply sir.he is asking 20000 instead of 14000.

P. Venu (Advocate) 27 September 2020

Many of the States have enacted laws against such practices. Please ascertain if any such law is in force in your State and proceed accordingly. Charging exorbitant rate of interest could be a criminal offence.