What is a Pawnbroker?
A pawnbroker is a person who carries on the business of advancing money on the security of pledged goods. The laws that apply to pawn broking also apply to "buy-back" arrangements where a pawnbroker "buys" the goods from the consumer, and gives the consumer the right to re-purchase the goods.
Under the Pawnbroker Act a pawnbroker must be registered and have a notice displayed so it is clearly visible to the public from outside the premises. The notice must show the maximum amount charged weekly and monthly by the pawnbroker, and state that in special circumstances a higher amount may be charged.
A pawnbroker must require from everyone attempting to pawn goods evidence as to the person's identity.
A pawnbroker must not accept goods for pawn from someone under the age of 16.
A pawnbroker must keep accurate and complete records in relation to every transaction, in the form and containing the information required by the Second-Hand Dealers and Pawnbrokers Regulations. Details that must be recorded include details of the goods pawned, full name and address of the borrower, the amount of money advanced on the goods, the charge for the loan and the period of the loan.
A pawn ticket must be issued. The pawn ticket must include the amount of the loan, charges, and the period of the loan. This must be given to the consumer with a notice in the form of Schedule of the Regulations. This notice includes information about redeeming goods, charges and sale of unredeemed goods.
Goods may be redeemed by paying the outstanding amount of the loan and producing the pawn ticket and a driver's license or other identification as set out in the Regulations. Goods may be redeemed after the expiry of the period of the loan if the pawnbroker has not disposed of them.
Once the period of the loan expires and the goods are not redeemed, the pawnbroker must offer the goods for sale as soon as practicable.
If your goods are sold, the pawnbroker can deduct from the proceeds of sale any money you owe and the costs of selling the goods. You are entitled to any money left over from the proceeds of sale after these amounts have been deducted, if you claim it within 12 months after the sale of the goods.
If you do not claim the money left over within 12 months after the sale of the goods, you are no longer entitled to it and the pawnbroker can keep it. It is illegal for the pawnbroker to refuse to pay you the money left over if you request payment within the 12-month period. If the pawnbroker refuses to pay you, you may apply to the Magistrates' Court for an order that the pawnbroker pay you the money.
Cash fast as a New South Wales Licensed Pawnbroker complies with all laws relating to the pawnbroker industry in that state.
New South Wales Pawnbrokers and Second-hand dealers act 1996: Click here to link
New South Wales Fair Trading, what is a Pawnbroker? Click here to link
Pawn broking is exempt under the National Credit Act. Because it is not technically credit or a credit service under the Act. It is covered by State-based pawn legislation and also by the unconscionable conduct and misleading and deceptive provisions of the (ASIC 2001Act).
Click here to link, Click here to link 2