Extending credit Understanding pawnbroking customers' options

7 SOCIAL MARKET FOUNDATION We believe that the recent pandemic combined with the rapid increase in the cost of living, adds a real sense of urgency to resolve the issue between banks and the pawnbroking sector. [...] Dr Joanne Atkinson of the University of Portsmouth has suggested that the decline of pawnbroking may increase the risk of financial exclusion.15 This is the main concern of this report. [...] • A loan agreement is made, where the specifics of the loan, for example the duration of the loan and the charged rate of interest, is detailed. [...] This is significantly higher than the level of unbanked people in the general population, which is estimated to be around 1%.46 Customer welfare and financial exclusion According to the PFRC’s analysis, the emergent picture of pawnbroking customers and why they use pawnbroking services is one of necessity. [...] In the context of industry decline and the closure of pawnbroking shops, this raises some significant questions around financial exclusion, the functioning of the consumer credit market, and the future.