“Pawning” Legal Comparative Analysis for the Decision Making of the People

Abstract

   This article aims to study and compare the regulations of pawning between the Civil and Commercial Code and the Pawnshop Act, B.E. 2505, to present guidelines for using assets as collateral for debt repayment by following either of pawning laws. By studying the relevant legal provisions, the article aims to compare the similarities and differences between the two types of law, concerning the general characteristics rights, and obligations of pawnbrokers and pawners. This includes the termination of pawn contracts and pawn enforcement. This is to analyze the advantages and limitations of two types of law for pawning with the consideration of factors such as the principal amount, interest rates, types of collateral, repayment periods, interest rates, and pawn enforcement. Additionally, the analysis will take into account the burden of outstanding debt and the ease of communication between the parties involved. Examining the assets to be pawned, it becomes apparent that if the assets are general items with limited market value, such as kitchen appliances, electrical appliances, tools, or everyday items, they may be more suitable for pawning in a pawnshop under the Pawnshop Act of 1962. On the other hand, if the assets have higher value or specific demand, they might be considered for pawn transactions under the Civil and Commercial Code. The Pawnshop Act of 1962 may have certain restrictions compared to pawn transactions under the Civil and Commercial Code, where the parties have more freedom to negotiate various conditions. This flexibility allows for adjustments to better suit the preferences of the parties involved. Therefore, from this study and analysis, individuals can make informed decisions on whether to pawn their assets as collateral for debt and choose the type of pawn transaction that best fits their needs.