Pawnshop break-in -- Remedy for the clients

As I mentioned earlier, Tai On Pawnshop was broken into last month.

I came across this advertisement dated 12 Feb 2006.

The relevant section is Section 22 Pawnborkers Act 1972.

Section 22(2) states that
"The licensee shall be responsible for the loss of any pledge, whether such loss be caused by fire or otherwise and shall be responsible for the damage of the pledge by fire or in consequence of fire"

Section 22(3) stipulates that:
"In the case of any pledge destroyed or damaged or in consequence of fire, the value of the pledge shall, for the purposes of the compensation of the pawner, be assumed to be one quarter more than the amount of the loan thereon".

Having said that, there was legal precedent in the case of Thai Sun Pawnshop as reported in http://www.malaysiakini.com/news/28844 (Dated 2 Aug 2004). In that case, the Magistrate ruled that the obligation to repay 25% of the ticket value is applicable in the case of loss through a fire. For robbery cases, the client could claim the balance plus interest and cost. In other words, the client could get the full cash value of the pawned item.

Base on the calculation by Tai On Pawnshop, the client can probably get back 62.5% of the value of the pawned item. As a normal practice, the loaned sum is 50%. The client can only claim 1/4 of the 50%. (50%+12.5%=62.5%)

For the clients out there, they have two choices:
1. To submit the claim to the Accountant appointed by Tai On Pawnshop and be contented of the 62.5%.

2. The clients can also submit the claim to the Magistrate Court within 12 months from the date of break-in (15 Jan2006) and claims for the full value plus interest (24% per annum) and legal costs.