Over 2.2 thousand pawnshops gain market access under new rules
To be able to continue their operations, pawnshops were to complete market access formalities and have their records included in the state register under new rules within the transition period that ends on 9 July 2021.
All major, medium-sized and most small-sized pawnshops (accounting for over 98% of the total pawnshop loan portfolio) have by now completed these formalities and are continuing to issue consumer loans.
As of 9 July 2021, 2,215 pawnshops confirmed their status.
Those having failed to complete new market access procedures will lose their status, with the Bank of Russia poised to strike them off the state register. Most such pawnshops are in liquidation, bankrupt or dormant.
Legal entities that have been struck off the state pawnshop register have no right to make consumer loan agreements or make any amendments to them. Furthermore, such legal entities have one month of the date they were excluded from the register to delete the word ‘pawnshop’ from their full and short names.
They are entitled however to carry on receiving payments from borrowers under previously made loan agreements and foreclose on pledged property under such loan agreements in the event of borrowers' default on their obligations.
The current list of pawnshops is available on the Bank of Russia website.