Quote:
Originally Posted by Joker
I dont understand how they have become "pawn shops"
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The difference is in who keeps possession of the collateral during the loan period.
If I get a loan using collateral, and the bank keeps it until the loan is paid, it's essentially pawning the item.
If I get a loan using collateral, but I keep possession as long as the loan is paid, then it's more like a traditional bank loan.
MA could easily have done either route, however, given how decay works, option 2 makes little sense: I put Shadow armor up for a large loan with a promise to repay in a week - if I keep the armor, I could easily decay much of the value in the week, keep the loan, and the bank is stuck with badly decayed armor that's worth a fraction of the value at the time the loan was made. (This is a problem in the real world as well).
Until
MA also introduces in game credit scores and the like that a bank can access and use, option 1 (the pawn shop method) is the most logical.