In 2018, the FCA found that pawnbroking customers are not always collecting the surplus money owed to them. In this paper, we share the results of a first intervention designed to address this.
We partnered with one of the UK’s largest pawnbroking lenders, using a novel behavioural design approach to try to increase surplus collection. A first intervention, a new reminder letter for customers, is reported in this paper and found to increase surplus collection rates significantly. A second experiment, focused more on interventions on pawnbroker store processes, is currently in the field.
Paul Adams, Chris Burke, Alex Chesterfield, Bhavini Parmar, Laura Smart and Anna Whicher
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