The Mont-de-Piété (state-sanctioned pawn-shop) has sought an injunction against Cash Converters at the Brussels commercial court, accusing them of running pawnshops, an illegal practice without specific authorisation, reports L’Echo on Thursday. The aim is to stop this type of activity by imposing a daily fine of 5,000 euros. Cash Converters, whose main business is buying and selling second-hand assets from and to private individuals, is currently running a special ’buy-back’ offer, allowing sellers to reclaim their goods. The Mont-de-Piété argues that they are the sole entity authorised to run pawnshops and that Cash Converters’ buy-back scheme infringes various articles of the criminal code as well as the law on market practices.
Having initiated criminal proceedings that have so far proven to be unsuccessful, they are now taking the matter to court.
Cash Converters has responded that this type of buy-back technique is perfectly legal.