28 day sale and buyback agreements

28daybuybacks

Hi Guys are 28 day sale and buyback agreements classed as loans, i.e if I sell an item in a cash converter store and have 28 days to buy it back at a rate of 25% on top of the original price they gave me, which was £100 for my mobile phone, so the fee I have to pay to buy it back is £25 plus the £100 making it £125 in total. They have told me I can extend the agreement by a further 28 days by paying the fee of £25, but I can do this only once. Is this classed as a loan.

regards David.

CLAPTON

28daybuybacks wrote: »

Hi Guys are 28 day sale and buyback agreements classed as loans, i.e if I sell an item in a cash converter store and have 28 days to buy it back at a rate of 25% on top of the original price they gave me, which was £100 for my mobile phone, so the fee I have to pay to buy it back is £25 plus the £100 making it £125 in total. They have told me I can extend the agreement by a further 28 days by paying the fee of £25, but I can do this only once. Is this classed as a loan.

regards David.

classified as a loan by whom?

Browntoa

Secured loan against the goods

SammenForLivet2

Are you asking if they are reported on to CRA's or listed on your credit file?

iolanthe07

Well, it sounds a really bad deal, tbh, loan or not.

dealer_wins

iolanthe07 wrote: »

Well, it sounds a really bad deal, tbh, loan or not.

To be fair the shops have a lot of overheads. Staff, rent, rates, power, storage, insurance etc

jonesMUFCforever

dealer_wins wrote: »

To be fair the shops have a lot of overheads. Staff, rent, rates, power, storage, insurance etc

...Can I add bad debtors to that list.

paddyrg

jonesMUFCforever wrote: »

...Can I add bad debtors to that list.

I'm pretty sure they'll lend less than the value of the principal plus interest - the bad debts shouldn't come out of overhead but be built into the pawnbroking service secured debt.

Pretty moot though, they do have overheads and sell a lot of crap.