BSP Circular

MANUAL OF REGULATIONS FOR NON-BANK FINANCIAL INSTITUTIONS – PAWNSHOPS

Pawnshops who transact with any pawner for the first time shall require the pawner to present the original and submit a clear copy of at least one (1) valid photo bearing identification document (ID) issued by an official authority.

The valid ID should indicate the address where the pawner resides, otherwise, pawner shall be required to present, together with the valid ID, a barangay certification or a copy of a billing statement that indicates the address where the pawner resides.

For this purpose, the term “official authority” shall refer to any of the following:

  1. Government of the Republic of the Philippines;
  2. Its political subdivisions and instrumentalities;
  3. Government-owned and/or controlled corporations (GOCCs); and
  4. Private entities or institutions registered with or supervised or regulated either by the BSP or the SEC or the Insurance Commission (IC).

Valid IDs include the following:

  1. Passport; inlcuding those issued by foreign governments
  2. Driver’s License
  3. Professional Regulation Commission (PRC) ID
  4. National Bureau of Investigation (NBI) Clearance
  5. Police Clearance
  6. Postal ID
  7. Voter’s ID
  8. Barangay Certification
  9. Government Service Insurance System (GSIS) e- Card
  10. Social Security System (SSS) Card
  11. Senior Citizen Card
  12. Overseas Workers Welfare Administration (OWWA) ID
  13. OFW ID
  14. Seaman’s Book
  15. Alien Certification of Registration/ Immigrant Certificate of Registration
  16. Government Office and GOCC ID, e.g., Armed Forces of the Philippines (AFP ID), Home Development Mutual Fund (HDMF ID)
  17. Certification from the National Council for the Welfare of Disabled Persons (NCWDP)
  18. Department of Social Welfare and Development (DSWD) Certification
  19. Integrated Bar of the Philippines ID
  20. Company IDs issued by private entities or institutions registered with or supervised or regulated either by the BSP, SEC or IC
  21. Passports issued by foreign governments

The foregoing shall be in addition to the customer identification requirements under Rule 9.1.c of the Revised Implementing Rules and Regulations (RIRRs) of R.A. No. 9160, as amended (Anti-Money Laundering Act), which requires pawnshop to obtain the following minimum information / documents from pawners:

  1. Name;
  2. Present address;
  3. Permanent address;
  4. Date and place of birth;
  5. Nationality;
  6. Nature of work and name of employer or nature of self-employment/business;
  7. Contact numbers; and
  8. Specimen signature.

A copy of the ID, barangay certificate and/or billing statement shall be kept by pawnshops for convenience of the pawner who continues to transact with the pawnshop but said documents should be updated at least every three (3) years. Pawnshops shall post excerpts of the above requirements conspicuously in its principal place of business and branches. The poster (shown as Appendix 7) shall not be smaller than 8.5 x 11 inches.

Loan Limit. Pawnshops may grant such amount of loans as may be agreed upon between the parties. The amount of loan shall in no case be less than thirty percent (30%) of the appraised value of the security offered, unless the pawner manifests in writing that he is applying for a lesser amount. Pawnshops shall not underappraise the security offered for the loan to circumvent the restriction prescribed by this Section.

Interest and Surcharges. The rate of interest including surcharges on any loan or forbearance of money extended by a pawnshop shall not be subject to any ceiling. However, pursuant to a decision of the Supreme Court (case of Medel, et al vs Court of Appeals, GR No. 131622 dated 27 November 1998) the interest rate shall not be iniquitous, unconscionable, or contrary to morals, if not against the law as may be determined by the Court. No pawnshop shall collect interest on loans in advance for a period of more than one (1) year.

(Circular No. 656 dated 02 June 2009)

Rate of interest in the absence of stipulation. The rate of interest for a loan or forbearance of money in the absence of an expressed contract as to such rate of interest, shall be twelve percent (12%) per annum.

(Circular No. 656 dated 02 June 2009)

Other charges. In addition to interest, pawnshops may impose a maximum service charge of five pesos (P5.00), but in no case to exceed one percent (1%) of the principal loan. No other charges, such as but not limited to insurance premium for the safekeeping and conservation of the pawned item, shall be collected.

Past Due Accounts; Renewal

A loan may be renewed for such amount and period as may be agreed upon between the pawnshop and the pawner, subject to the same conditions provided in this Part for new loans. No loan shall be renewed or its maturity date extended unless a new pawn ticket as defined in Sec. 4102P shall be issued indicating the new term of the loan agreed upon by the pawnshop and the pawner.

Right of pawner to redeem pawn within ninety (90) days from maturity

A pawner who fails to pay or renew his loan with a pawnshop on the date it falls due shall have ninety (90) days from the date of maturity of the loan within which to redeem the pawn by paying the principal amount of the loan plus the amount of interest that shall have accrued thereon. The amount of interest due and payable after the maturity date of the loan shall be computed upon redemption based on the sum of the principal loan and interest earned as of the date of maturity. The procedures to be followed in case the pawner fails to redeem his pawn are prescribed in Sec. 4324P.

If the maturity date of the loan or expiry date of redemption period falls on the pawnshop’s non-business day, a regular holiday or a special non-working holiday in the locality, then the maturity date of the loan or expiry date of redemption period shall be on the next business day.

If the pawnshop is closed on the maturity date of the loan or expiry of the redemption period, with or without prior notice to the pawner, then the maturity date of the loan or expiry of redemption period shall be on the next business day and the pawnshop shall not charge additional interest or surcharge to the pawner. If the pawnshop is closed due to a robbery, then the maturity date of the pledge or expiry of redemption period shall be on the next business day when the pawnshop opens for business and the pawnshop shall not charge additional interest or surcharge to the pawners.

Redemption of Pawns.

A pawnshop shall not release any pawn without first requiring the pawner to present and surrender the corresponding pawn ticket. If the pawn ticket was lost and could not be presented or surrendered, the pawnshop shall require the owner-pawner to execute and submit an affidavit of loss and shall ascertain the identity of the pawner, to ensure that the pawned item is released only to the owner-pawner.

The pawnshop shall return the pawn in the same condition when they were first pawned by pawner, upon full settlement of the loan.

(Circular No. 656 dated 02 June 2009)

Notices to the Pawner and to the Public

ON OR BEFORE THE EXPIRATION OF THE NINETY (90)-DAY GRACE PERIOD, A PAWNSHOP SHALL NOTIFY A PAWNER IN WRITING THAT THE PAWN SHALL BE SOLD OR OTHERWISE be DISPOSED OF, lN THE EVENT THE PAWNER FAILS TO REDEEM THE PAWN WITHIN THE NINETY (90)-DAY GRACE PERIOD, SPECIFYING IN THE SAME NOTIFICATION THE DATE, HOUR, AND PLACE WHERE THE SALE SHALL TAKE PLACE. The notice shall be sent through the mode of notification AGREED UPON BY THE PAWNER AND THE PAWNSHOP AS indicated AT THE BACK OF the pawn ticket at the time the loan was granted which may be through text/SMS message, electronic mail, FAX or by mail to the residential address. lf sent through text/SMS, the pawnshop shall obtain a report from the appropriate Telecommunications Company (TELCO) indicating that a text/SMS message was sent to the mobile phone number given by the pawner. The report of the TELCO shall be made available to BSP upon request.

IN CASE NO SPECIFIC MODE OF NOTIFICATION IS AGREED UPON AND INDICATED AT THE BACK OF THE PAWN TICKET, THE MODE OF NOTIFICATION SHALL BE BY ORDINARY MAIL. PAWNSHOPS SHALL EXERT REASONABLE EFFORT TO NOTIFY THE PAWNER AND PUT ON RECORD IF IT IS UNABLE TO DO SO. PAWNSHOPS SHALL MAINTAIN PROOF OF THE NOTICE TO PAWNER.

If upon the expiration of the ninety (90)-day grace period, the pawner fails to redeem his pawn, the pawnshop may sell or dispose of the pawn only after it has published a notice of public auction of unredeemed articles held as security for loans in at least two (2) newspapers circulated in the city or municipality where the pawnshop has its place of business, six (6) days prior to the date set for the public auction.

The notice shall be in English, and in either Filipino or the local dialect and shall contain the following:

  1. Name and address of the owner of the pawnshop; and
  2. Date, hour and place of the auction sale.

In remote areas where newspapers are neither published nor circulated, the publication requirement shall be complied with by posting notices at the city hall or municipal building of the city or municipality and in two (2) other conspicuous public places where the pawnshop has its place of business.

Terms and Conditions

  1. The pawner hereby accepts the pawnshop’s appraisal as proper.
  2. The pawner agrees on the interest rates imposed in this contract of pledge. In case of dispute, the regular courts of law have the vested power to determine the reasonableness and legality of interest rates. The pawnshop hereby agrees not to collect advance interest for a period of more than one (1) year.
  3. The service charge is equivalent to one percent (1%) of the principal loan, but shall not exceed to five pesos (P5.00). No other charges shall be collected.
  4. This loan is renewable for such amount and period as may be agreed upon between the pawnshop and the pawner subject to the same requirements for a new loan.
  5. Upon maturity of this loan, as indicated on the face of this pawn ticket, the pawner has ninety (90) days from maturity date within which to redeem the pawn by paying the principal loan plus the interest that shall have accrued thereon.
  6. The amount of interest due and payable after the maturity date of the load up to the redemption period shall be computed upon redemption at the rate of provided above based on the sum of principal loan and interest earned as of the date of maturity.
  7. The pawnshop shall notify the pawner of any change in its business address/location through: (1) publication in English and in Filipino or in the local dialect in two (2) daily newspapers of general circulation in the city or municipality where the pawnshop is closing business and (2) posting in English and Filipino or in the local dialect for one (1) month after the date of publication in a conspicuous place in the premises to be vacated and to be transferred to.
  8. The pawner and pawnshop agree that the notice of auction shall be delivered via e-mail, SMS, or ordinary mail at_______________________ (check box of agreed mode and indicate the email address, mobile phone no., or complete residential address as may be appropriate, in the space provided). In case no mode of notification is agreed upon, the default shall be via ordinary. The pawnshop shall have the right to sell or dispose of the pawn in public auction if the pawner fails to redeem the pawn within the (90) day grace period. The pawnshop shall send the reminder on or before the expiration of the ninety (90) day grace period.
  9. The pawner shall advise the pawnshop of any change of address/mobile phone number/e-mail address.
  10. This ticket shall be surrendered at maturity date upon payment of the loan. In case of loss or destruction of this ticket, the pawner hereby undertakes to personally present an affidavit to the pawnshop before the redemption period expires. The pawnshop has two (2) days whether to accept: (1) the affidavit in place of the original pawn ticket, or (2) to issue a substitute pawn ticket, thereby cancelling the original.
  11. In case of pre-payment of this loan by pawner, the interest collected in advance shall accrue in full to the pawnshop.
  12. The pawner shall not be entitled to the excess of the public auction sale price over the amount of principal, interest and service fee: neither shall the pawnshop be entitled to recover the deficiency from the pawner.
  13. The pawner declares under the Anti-Fencing law that he is the owner of the property subject of this contract.
  14. The pawnshop shall excercise reasonable care and caution that an ordinary prudent person would as to his own property over the thing pawned in accordance with Republic Act No. 386 (Civil Code of the Philippines) as amended. Accordingly, the pawnshop shall insure all pawned items, except those which are kept inside a fireproof vault, in accordance with the pertinent regulations of the Bangko Sentral ng Pilipinas. Claims for restitution by pawners in case of loss, destruction or defect of the pawn due to robbery, fire and other fortuitous event, with or without the fault or negligence of the pawnshop, its owner, managing partner, directors and officers are cognizable by the regular courts.
  15. The pawnee shall not be liable for all the loss or damage of the article pawned due to fortuitous events or force mejure. When the loss is due to the fault and/or negligence of the pawnee, the amount of its liability, if any, shall be limited to the appraised value appearing on the face hereof.
  16. In case this loan is not paid on maturity date, the pawner herby agrees to pay in addition to accrued interest, 2 percent per month of principal, as liquidated damages. For purposes of computing the amount of liquidated damages, a fraction of the original term of the loan agreed upon as indicated at the face of the pawn ticket shall be considered as one full term.
  17. Venue of all judicial and administrative cases or proceedings with this contract shall solely and exclusively be brought before appropriate courts, departments, offices or agencies of the government situated in Parañaque City, Metro Manila.

How to do Pawn, Pawn Renewal and Pawn Redemption using Cebuana From Home SMS

  1. Send SMS to the branch you want to do your transaction. Access branch contact details go to the ‘Branch and Agents locator’ section of this website.
  2. Provide the required details by our friendly branch personnel.
  3. Our branch personnel will guide you throughout the process.

How to Pawn using Cebuana From Home FB Messenger

  1. Search for Cebuana Lhuillier with blue checkmark on FB Messenger and type “Cebuana from Home”
  2. Choose New Pawn and type your personal, jewelry details then finish the transaction.
  3. You will receive a call or text from a Cebuana from Home agent to confirm details, and schedule the nearest Cebuana from Home rider to your house.
  4. Cebuana from Home rider will go to your house to appraise the item. Cnce agreed on the loan amount, the client will receive the cash and pawn ticket

Pawn Renewal

  1. Visit www.cebuanafromhome.com and click ‘Mag Renew’’.
  2. Enter the pawn ticket details
  3. Provide your personal details.
  4. Choose the payment method that you prefer.
  5. Wait for the call of the Cebuana Lhuillier transaction agent to confirm the details of the transaction.

Pawn Redemption

  1. Visit www.cebuanafromhome.com and click ‘Mag Redeem’.
  2. Enter the pawn ticket details
  3. Provide your personal details and address for item delivery.
  4. Choose the payment method that you prefer.
  5. Wait for the call of the Cebuana Lhuillier transaction agent to confirm the details of the transaction.

Booking of transactions is only available from 9AM – 4AM. Transactions booked beyond this time frame will be processed on the following working day. Redemption process can only be done from Monday – Saturday.

How to Pawn using Cebuana From Home Web

  1. Visit www.cebuanafromhome.com and click ‘Mag-sangla’
  2. Enter the information of the jewelry you will pawn.
  3. Provide your personal details and address.
  4. Choose the payment method that you prefer.
  5. Wait for the call of the Cebuana Lhuillier transaction agent to confirm the details of the transaction.

Booking of transactions is only available from 9AM – 4AM. Transactions booked beyond this time frame will be processed on the following working day.

Pawn Renewal

  1. Visit www.cebuanafromhome.com and click ‘Mag Renew’’.
  2. Enter the pawn ticket details
  3. Provide your personal details.
  4. Choose the payment method that you prefer.
  5. Wait for the call of the Cebuana Lhuillier transaction agent to confirm the details of the transaction.

Pawn Redemption

  1. Visit www.cebuanafromhome.com and click ‘Mag Redeem’.
  2. Enter the pawn ticket details
  3. Provide your personal details and address for item delivery.
  4. Choose the payment method that you prefer.
  5. Wait for the call of the Cebuana Lhuillier transaction agent to confirm the details of the transaction.

Booking of transactions is only available from 9AM – 4AM. Transactions booked beyond this time frame will be processed on the following working day. Redemption process can only be done from Monday – Saturday.

How to Pawn using Cebuana Xpress Mobile App

  1. Select Pawning
  2. Click ‘mag-sangla’
  3. Take a photo of the item
  4. Input the required details
  5. Pin the pick-up address
  6. Click ‘Submit’ and wait for a call from Cebuana Lhuillier appraisal agent
  7. Our appraisal rider will pick-up the sangla item

CORPORATE AGENT PARTNERS

  • ACTION.ABLE, INC.
  • ALL ACCESS GATEWAY INC.
  • ANTRECCO (AGUSAN DEL NORTE TEACHERS, RETIREES, EMPLOYEES & COMMUNITY COOPERATIVE)
  • ACM VIP
  • ALL CASH
  • AGRILIFE/ AGRIVET
  • ASENSO PINOY STORE, INC. (EASY DAY SHOP)
  • AVICOM ENTERPRISES
  • AYALA ALABANG VILLAGE ASSOCIATION
  • BAUG CARP MULTI PURPOSE COOPERATIVE
  • BAGUIO BENGUET COOP
  • CARD BANK INC
  • CARD MRI RIZAL BANK INC
  • CARD SME BANK
  • CARITAS BANCO NG MASA, INC.
  • CEBU PEOPLE’S MULTIPURPOSE COOPERATIVE
  • CIS BAYAD CENTER, INC
  • COOPERATIVE BANK OF BOHOL, INC
  • COUNTRY BUILDERS BANK
  • CREDENCE FINANCING, INC.
  • CURAMED PHARMACY
  • DALTON PAWNSHOP AND JEWELRY INC.
  • DANIELA PAWNSHOP
  • DIRECT AGENT 5 (DA 5)
  • DEVELOPMENT BANK OF THE PHILS.
  • EXPRESSPAY INC.
  • EVRIJEM FOREIGN EXCHANGE AND MONEY REMITTANCE
  • FILHAI MULTI PURPOSE COOPERATIVE
  • GLOBAL PINOY REMITTANCE AND SERVICES (GPRS)
  • GEMARY PAWNSHOP AND JEWELRY (CORP.)

OVER 600 BILLER PARTNERS NATIONWIDE

  • 123 FINANCE CORPORATION
  • 123 LENDING CORPORATION
  • 2C2P
  • 8AMC (VIA ECPAY)
  • ABEJO WATERS CORP.
  • ABRA
  • ACOM CONSUMER FINANCE CORPORATION
  • ACTIVE REALTY & DEVELOPMENT CORP.
  • ADA MANUFACTURING CORPORATION (VIA ECPAY)
  • AEON CREDIT SERVICE
  • AETERNITAS CHAPELS AND COLUMBARIUM (VIA ECPAY)
  • AFC SME FINANCE INC
  • AFTERWEST MICROLOANS INC
  • AGODA – DRAGONPAY
  • AGRIBANK
  • AGRO-INDUSTRIAL FOUNDATION COLLEGE OF THE PHILS.
  • AGUSAN DEL NORTE ELECTRIC COOPERATIVE, INC.
  • AIR YOU GO TRAVELS PHILIPPINES CO.
  • AKLAN ELECTRIC COOPERATIVE, INC.
  • ALAMINOS CITY WATER DISTRICT (VIA ECPAY)
  • ALLIANZ PNB LIFE INSURANCE INC.
  • ALPHA FUND SAVINGS & CREDIT COOPERATIVE (VIA ECPAY)
  • AMADEO WATER DISTRICT (VIA ECPAY)
  • AMYA POLYTECHNIC COLLEGE, INC. AND FINANCING CORPORATION (LENDPINOY)
  • ANGAT WATER DISTRICT (VIA ECPAY)
  • ANGELES ELECTRIC COMPANY ANGELICUM SCHOOL , INC. ILOILO CITY (VIA ECPAY)
  • ANJELMAN REAL ESTATE LEASING
  • ANTIQUE ELECTRIC COOP, INC ANTRECCO (BILLS PAYMENT)

OVER 600 BILLER PARTNERS NATIONWIDE

  • 123 FINANCE CORPORATION
  • 123 LENDING CORPORATION
  • 2C2P
  • 8AMC (VIA ECPAY)
  • ABEJO WATERS CORP.
  • ABRA
  • ACOM CONSUMER FINANCE CORPORATION
  • ACTIVE REALTY & DEVELOPMENT CORP.
  • ADA MANUFACTURING CORPORATION (VIA ECPAY)
  • CREDIT SERVICE
  • AETERNITAS CHAPELS AND COLUMBARIUM (via ECPAY)
  • AFC SME FINANCE INC
  • AFTERWEST MICROLOANS INC
  • AGODA – DRAGONPAY
  • AGRIBANK
  • AGRO-INDUSTRIAL FOUNDATION COLLEGE OF THE PHILS.
  • AGUSAN DEL NORTE ELECTRIC COOPERATIVE, INC.
  • AIR YOU GO TRAVELS PHILIPPINES CO.
  • AKLAN ELECTRIC COOPERATIVE, INC.
  • ALAMINOS CITY WATER DISTRICT (via ECPAY)
  • CREDENCE FINANCING, INC.
  • CURAMED PHARMACY
  • DALTON PAWNSHOP AND JEWELRY INC.
  • DANIELA PAWNSHOP
  • DIRECT AGENT 5 (DA 5)
  • DEVELOPMENT BANK OF THE PHILS.
  • EXPRESSPAY INC.
  • EVRIJEM FOREIGN EXCHANGE AND MONEY REMITTANCE
  • FILHAI MULTI PURPOSE COOPERATIVE
  • GLOBAL PINOY REMITTANCE AND SERVICES (GPRS)
  • GEMARY PAWNSHOP AND JEWELRY (CORP.)

List of Accepted Government/ Valid IDs

  • Passport
  • Driver’s License
  • Professional Regulation Commission (PRC) ID
  • National Bureau of Investigation (NBI) Clearance
  • Police Clearance
  • Postal ID
  • Voter’s ID
  • Philippine Identification (PhilID) card
  • Government Service Insurance System (GSIS) e-Card
  • Social Security System (SSS) ID
  • Senior Citizen’s ID
  • Overseas Workers Welfare Administration (OWWA) ID
  • OFW ID
  • Seaman’s Book
  • Alien Certification of Registration (ACR)
  • Barangay Certificate or ID (with picture and signature)
  • Birth Certificate (applicable to minors only)
  • Firearm License
  • Immigrant Certificate of Registration
  • Marriage License
  • National Council for the Welfare of Disabled Persons
  • New TIN ID
  • OWWA ID
  • Student ID
  • Alien Certification of Registration (ACR) / Immigrant Certificate of Registration
  • Government Office or Government Owned and Controlled Corporations (GOCC) ID (e.g. AFP ID, HDMF (Pag-ibig Fund) ID, etc.
  • Certification from the National Council for the Welfare of Disabled Persons (NCWDP)
  • Department of Social Welfare and Development (DSWD) Certification
  • Integrated Bar of the Philippines ID (IBP)
  • Company IDs issued by private entities or institutions registered with or supervised or regulated either by the BSP (Bangko Sentral ng Pilipinas), SEC (Securities and Exchange Commission) or IC (Insurance Commission)

IDs Accepted

As required by Bangko Sentral ng Pilipinas (BSP), clients who engage in a financial transaction with covered institutions for the first time shall be required to present the original and submit a clear copy of at least ONE (1) valid photo-bearing identification document issued by an official authority. For our clients’ convenience, Cebuana no longer requires submission of the photocopied ID. IDs are captured using a webcam in all branches. Clients are also required to submit an updated photo and other relevant information whenever the need for it arises.

Forms of identification accepted are the following;

Pawn Accepted IDs
1. Passport
2. Driver’s License
3. Professional Regulation Commission (PRC) ID
4. National Bureau of Investigation (NBI) Clearance
5. Police Clearance
6. Postal ID
7. Voter’s ID
8. Philippine Identification (PhilID) card
9. Social Security System (SSS) Card / Unified Multi-Purpose ID (UMID)
10. Barangay Certification
11. Government Service Insurance System (GSIS) e-Card
12. Senior Citizen Card
13. Overseas Workers Welfare Administration (OWWA) ID
14. OFW ID
15. Seaman’s Book
16. Alien Certification of Registration/Immigrant Certificate of Registration (for foreigners)
17. Government Office and GOCC ID, e.g., Armed Forces of the Philippines (AFP ID)
18. Home Development Mutual Fund (HDMF ID)
19. Certification from the National Council for the Welfare of Disabled Persons (NCWDP)
20. Department of Social Welfare and Development (DSWD) Certification
21. Integrated Bar of the Philippines (IBP) ID
22. Company IDs issued by private entities or institutions registered with or supervised or regulated either by the Bangko Sentral ng Pilipinas, Securities and Exchange Commission or Insurance Commission
23. ID issued by the National Council on Disability Affairs (NCDA)