Pawnbrokers and second-hand dealer licences
A pawnbroker licence allows you to do all of the following:
- lend money on the security of pawned items
- take items under a contract for sale where the seller has a right to buy back the goods.
Operating a pawnbroking business
- conduct your business fairly and ensure there is adequate management, supervision and control of the business operations
- maintain employment records for employees who enter into contracts on behalf of your business and provide their records to police on request - the records must include your employee's full name, residential address and date of birth, a photograph you can certify is of your employee, and a record of your employee's application for employment
- store the pawned goods securely
- keep copies of pawn tickets and affidavits for at least one year
- before lending money, ensure the pawn ticket setting out the contract conditions is signed by parties to the contract
- only enter into contracts with people over 18 years old, unaffected by alcohol or drugs, after checking their full name, address and identity
- for contracts for compact discs, record the title of the disc and the name of the artist as soon as the information becomes available to your business
- for each contract, record the details in electronic form or in a bound book and use a distinguishing number for each contract.
- for each transaction, record all of the following:
- a description of the goods pawned
- money lent in respect of each of the pawned goods
- interest to be paid on the money lent - expressed as a percentage rate and in dollar terms to be paid each week or month as the case may be
- charges that may become payable - eg: in the event of the sale of the goods
- the redemption period if it is longer than one month
- amount of any repayment made towards the loan
- the address where the goods will be located during the redemption period
- if the goods are redeemed, the date of the redemption
- if unredeemed goods are sold, the date of sale.
Last updated: 11 March 2016
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