Add World Offset Collision Not Working on Pawn?

Hello!

I got one simple question. In the Fighting Game I have, I have my characters running around by “Add World Offset” node. I don’t need complex movement component things so I decided to ditch my Character BP. It looks way too complex for a Template that does not use them.

But here I have a problem. Things such as overlap work, but collision is not working even if the Sweep is on.

My question is, if you are using Local Offset to move around and your character is a Pawn (not Character BP with all those movement component and capsule), the collision wont work?

Thank you for your time!