Panteloven

Panteloven is a Danish law that regulates pawnbroking, governing how pawnbrokers operate, how pawn loans are granted, and the rights of borrowers. It provides the legal framework for licensing pawnbrokers, supervising their activities, and ensuring transparent and fair terms in pawn transactions.

The act defines the scope of pawnbroking, the types of collateral allowed, and the rights and obligations of both parties. It requires pawnbrokers to assess the value of pledged items, offer a written agreement with clear terms, and disclose the interest, fees, repayment schedule, and the redemption period. It also sets rules on the custody and sale of pledged items, and the information that must appear on a pawnbroker’s ticket.

In operation, a borrower pledges an item of value in exchange for a short-term loan. The item is held securely, and the borrower receives cash or credit for a portion of the item’s value. Interest and any charges accrue over the loan period, and the borrower may redeem the item by repaying the debt within the specified period.

If the loan is not repaid, the pawnbroker may sell or auction the pledged item in a manner prescribed by the act, after proper notification, with proceeds applied to the debt and any surplus returned to the borrower.

The act includes consumer-protection provisions, such as transparency of terms, limits on abusive practices, and rights to complaints and redress. It is enforced by the appropriate supervisory authorities and forms part of Denmark’s broader framework governing credit and consumer lending.