Not repaying loan from pawn shop
Question Details: I have a ring in the pawn shop for a loan. We have decided we want to not pay the loan and let then keep the ring. Is there any lgal ramifications or credit reporting issues we should be a ware of?
Business Law Answers
Alot depends on the exact terms and conditions you pawned it under, but generally speaking, defaulting on any loan, even a secured one (as in this case, where it's secured by the ring and the shop may take ownership of the ring) has the following potential consequences:
1) It can be reported as a default to the credit rating agencies, hurting your credit
2) The lender could sue for the balance owing on the loan, if the property (the ring) doesn't cover it
Whether or not the shop will do these things again depends on the exact terms and conditions; how much the loan is for; even the personality of the shop owner.
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