REGULATIONS AND COMPLIANCE

In Florida, pawnbrokers are governed by Florida Statute 539. This is a well-written statute that provides a good balance of consumer protections, pawnbroker rights, and law-enforcement aids. First conceived in 1996, it has been modified continuously, and covers every aspect of the pawnbroker trade.  Here is an example of a typical Florida Pawn Transaction Form:

In addition, Pawnbrokers are governed by all of the major federal laws that apply to other entities designated as financial institutions.

• USA Patriot Act
• Truth-in-Lending Act
• Bank Secrecy Act and IRS regulations requiring reporting of certain cash transactions
• Trading with the Enemy Act and related Executive Orders and regulations
• Privacy provisions of the Gramm-Leach-Bliley Financial Services Modernization Act

And if you trade in firearms you have to comply with the Gun Control Act of 1968, along with abiding by Florida Statute 790, and more specifically, Florida Statute 790.335, which was passed in 2004... and requires the purging of firearms-related pawn records (in electronic format) within 60 days.  A tweak to this bill was recently passed...House Bill 177, which was approved by Gov Charlie Crist on June 24, 2009 and went into effect on July 1, 2009. The essence of this new law is ... If you hand-write your pawn tickets, and do not presently download, and you already provide daily copies of your pawn tickets to law enforcement, then this law does not apply.  But, if you are a pawnshop, AND you pawn and buy firearms, AND you download your pawn tickets electronically:   you must now download the Manufacturer and the Caliber in FCIC codes. (Copy of this 400 page Adobe document is available upon request)

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* DISCLAIMER;  This is for informational purposes only, and not intended to represent true legal advise on pawn procedures.  Please contact an attorney in your area for actual legal advise.

We go by all the rules & regulations that govern our industry, doing it “by-the-book” all the time.  In addition, we subscribe to the NPA Code of Ethics:

1.      Strive to operate their business in such a manner as to enhance and promote the positive and professional image of all pawnbrokers

2.      Maintain our places of business and their operations in a manner that will reflect credit and professionalism on the pawn industry.

3.      Deal with our customers and the general public with honesty, making service with integrity our constant goal.

4.      Engage in fair and vigorous competition to stimulate the continuous growth and evolution of the pawn industry.

5.      Obey the laws that are enacted by the local, state, and federal government and assist in the prosecution of those that do not.

6.      Strive to establish positive and long-lasting relations with our local, state, and federal government officials.

7.      With respect to our common commitment to the National Pawnbrokers Association, conduct themselves toward other members with the highest degree of fairness and professionalism.

8.      Assist the National Pawnbrokers Association in promoting the good image of the profession.

9.      Attempt to promote the Association to potential new members and will assist the Association by identifying the potentials to increase its membership.

10.   Assist the Association in its day to day operations, participate in its annual elections and cooperate and assist in special projects and investigations.

11.      Endeavor to maintain our financial commitment to the Association.

12.   Each officer and representative of the Association shall conduct themselves in an ethical and appropriate manner conducive to the benefit and welfare of this Association.